7 things to look for when you need a lender for your new home

Estimated reading time: 4-5 minutes

With interest rates rising and the housing market showing no signs of slowing down, you, like many others in the United States, may be feeling the pressure to buy a home. And when making an important financial decision, it’s important to work with professionals you can trust.

Whether you want to buy an existing home or planning to build newIf you’re still looking for the right mortgage, there are some things you should always look for in a lender.

A stellar reputation

What your mother told you as a teenager is still true: reputation matters, especially when dealing with financial institutions. And when you’re buying a home — the biggest investment most Americans will ever make — you want to work with a company you can trust.

When checking out a potential lender, Nerd Wallet recommends an online search to find out if the lender has been disciplined and to read published notices. Keep in mind that all legitimate lenders must register with the state, so you can verify the Utah Department of Commerce Division of Real Estate to ensure that a lender is approved and to see if they have been disciplined.

Local know-how

Both large and small lenders can get you a mortgage, but finding one with local expertise can pay off when buying a home, especially in today’s competitive markets. A lender with detailed knowledge of your real estate market can make decisions, unlike a larger national lender.

For example, the local company may be comfortable underwriting specific types of properties within your market due to their background knowledge, while a national lender may be limited to lending options at home. cookie cutter.

write for real estate agent.comAngela Colley reports that local lenders might be more willing to work with someone who is self-employed or needs a credit boost.

Options, options, options

Speaking of cookie-cutter loan options, you’ll want to find a lender who can offer a number of loan products and programs. Depending on the home you have chosen, your income level, credit, first-time homebuyer or repeat buyer status, and many other circumstances, you may qualify for a number of mortgage programs.

To make sure you choose the best one for your situation, you’ll want to have multiple loan options — and a lender who understands them all.

Reactivity

When it comes to buying a home, things can change quickly, especially in today’s market. According to Zillowhomes are spending less time on the market than in the past, creating a sense of urgency for buyers hoping to secure a new home.

When you need to make quick decisions, it’s important to have a lender you know is responsive. If you’re having trouble getting a return phone call or email from a lender or mortgage broker, it could be a sign that they’re the wrong person.

Your interests at heart

It may sound trivial, but when making an important financial decision, you want to make sure your support team has your best interests in mind. That’s why it’s important to work with a lender who wants to find the best loan product for you and your family, not the easiest or most lucrative option for the lender.

If you feel pressured into choosing one loan product over another, especially if it isn’t right for you, it may be a good idea to keep looking for a lender.

7 things to look for when you need a lender for your new home
Photo: Andrii Yalanskyi/Shutterstock.com

Honest rates

Loan documents can be difficult to understand, especially for first-time home buyers. That’s why it’s essential to work with a lender who is open and honest about rates and fees – and who will take the time to explain them to you.

Fortunately, the Consumer Financial Protection Bureau requires lenders to provide loan estimates, which outline the terms of a particular loan, including your monthly principal and interest payment, your interest rate, and the amount of interest you will pay over the term of the loan. If you’re working with a lender that’s opaque about rates and fees, that’s a good sign to move on.

Competitive rates

When you’re buying a home, interest rates are king – especially today when house prices and interest rates are on the rise. For this reason you will need a lender who can compete with the lowest rates. Keep in mind that even a slightly lower interest rate can save you hundreds of dollars each month on your mortgage payment, so it can literally pay to shop around.

If you want to buy a new home but don’t know where to start, the experts at Woodside Homes can help you follow the process. Woodside has lenders at your fingertips to provide options and a great customer experience, including navigating finances.

From Ogden to Spanish Fork, Woodside Homes offers a range of communities and home designs to suit all needs and budgets. Contact them today to find a new home that’s perfect for you.

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