Hiring the right mortgage broker can mean all the difference in the world between winning the home you want at a fair price and having to over pay on purchase price to buy the seller’s confidence and gain their attention.
Reputation is everything in the real estate world. As an agent responsible for managing close to 1000 transactions I can tell you for certain which companies deliver on time, as promised and who to be wary of.
I’ll be happy to share a list of companies I frequently do business with if you’d like.
I have learned first hand how to assess a lender’s competency based on their financing letters and outreach and share my experience with the seller’s who depend on me in their decision making processes.
As a listing agent when I review multiple offers with my seller clients we go over an excel sheet with each offer side by side. This includes information regarding the buyer’s funding, their lender, the loan type, the dates involved and any known insight regarding the company. Working with local, reputable lenders can help you win in a competitive situation dramatically because they will understand the standard deposits, length of time expected for contingencies and have plans in place for appraisal and financing commitments.
At least 30 of my buyer clients have won the home they wanted by working with a highly respected and proactive lender. About 20 of those 30 were the same lender. They have a strategic and unique process of approaching the listing agent during the offer selection time that really stands out and makes my clients look that much more secure.
Have you ever left an important decision to the last minute and then felt unnecessarily rushed?
When you rush a process you often end up with rushed results. Our goal for our home buyers is to enjoy a comfortable pace for their purchase avoiding unnecessary hiccups or fire drills. Choosing your lender BEFORE you find the right home is crucial to your success.
At that moment when the right home comes along, you may know in your heart and in your mind that it’s the one but if you aren’t ready to go, you may not get the chance you deserve.
Smart buyers work with me and a local, reputable lender to get ready including obtaining * pre commitment * much better than pre approval - as well as with a clear understanding of your expenses.
Knowing how much your upfront deposits, upfront closing costs, monthly payment including taxes, insurance and mortgage principal and interest is crucial. Choosing a loan type, a down payment and assessing your finances can take time.
The best lenders, like the best real estate agents, are very busy. No matter how invested we are in your success, we all need time to do their job correctly so that you enjoy the benefits of our expertise.
Some questions to ask your lender include
1. What is your main area of financing expertise?
2. Do you have a geographic area that you mostly do business within where you are known?
3. Are you familiar with the nuances and loan customs in the towns I’m most interested in?
4. What is your communication strategy for listing agents?
5. Will you reach out to them by phone when my offer is submitted?
6. Do you update them regularly on my progress?
7. Will you share enough to show that I’m qualified but not my private information?
8. Can you get me pre-committed?
9. With my down payment will I need an appraisal?
10. How long will you need to issue a financing commitment from the time you receive my accepted offer?
Having an attractive interest rate is very important, so is choosing a lender that will create a secure loan and deliver as promised on time.
Here are a few tips on how to tell if you're getting the best interest rate for your mortgage:
1. Shop around and compare rates from multiple lenders BEFORE you go house hunting. This is the most important step in getting the best interest rate. Don't just go with the first lender you talk to. Get quotes from several lenders, and compare their rates and terms. There could be large variations to be aware of. One lender may offer a slightly lower rate but substantially higher closing costs another may offer lower costs upfront but higher rates long term.
The key to remember is that once your offer has been accepted you shouldn’t make any deviations in loan type or lender without discussing it first with the seller and your attorney. Any change could cause financing issues or delays that could cost you both time and money. If you won in a competitive situation using one loan type and deposit with one company and try to shift, the seller may not agree and look instead to cancel the agreement.
2. Be aware of the different types of mortgage rates. There are a variety of mortgage rates available, including fixed-rate loans, adjustable-rate loans, and hybrid loans. Each type of loan has its own advantages and disadvantages, so it's important to understand the different options before you choose one. Many people are looking for lenders who will agree to reduce their interest rate if there is a rate drop within a year at a very low cost to refinance. Ask me about which lenders are offering things like this.
3. Consider your credit score. Your credit score is one of the most important factors that lenders use to determine your interest rate. The higher your credit score, the lower your interest rate will be. Before paying off any debt though, ask your lender whether it makes more sense to use the funds to reduce debt or hold the money as reserve funds or use as down payment. A great lender will help you strategize.
4. Ask about discounts and incentives. Many lenders offer discounts and incentives to borrowers who meet certain criteria. For example, some lenders offer discounts for borrowers who have a high credit score or who make a down payment of 20% or more.
5. Don't be afraid to negotiate. Once you've received quotes from several lenders, you may be able to negotiate a lower interest rate. Be prepared to walk away from a lender if you're not happy with the terms they're offering.
Here are some additional tips and things to know about obtaining a mortgage.
Be prepared to provide documentation, and later provide it again. Lenders will need to see documentation of your income, assets, and debts before they can give you an interest rate quote. This documentation will help them assess your risk and determine your interest rate. This information changes over time and it’s expected that you’ll need to resubmit it throughout your process multiple times.
Getting the best interest rate for your mortgage can save you thousands of dollars over the life of your loan.
Choosing the right agent to help you identify the most suitable home, negotiate the most fair price and terms and work side by side with you and your chosen lender will provide you with the best possible outcome for your purchase.
I guide sellers and buyers in the Andovers, Merrimack Valley, northern mass, north shore, seacoast ma and nh and southern nh communities.
If you are starting to consider making a move reach out and let’s talk about your goals.