Lender shopping

January 25, 2009 in Home Buying, Lenders

When it comes to purchasing a home one size doesn’t fit all.  The same is true for lenders.  Depending on your situation shopping for a lender to supply you with a mortgage is just as important as picking your Buyer Agent to help you through the home buying process.  Home buyers need to be ready to make offers and shopping for a lender should begin well in advance of the home purchase. 

Home buyers need to check with their current bank first to see what they have to offer in mortgage loans.  Since interest rates will vary the loan programs offered should be explored.  If you are looking at any property that needs to be repaired or that you want to update this should be discussed with the lender.  Not all lenders will offer this type of program and it is important to know before you make an offer to purchase.

Lender fees vary and so do the types of loans.  In addition if you are considering asking a seller to pay your closing costs you need to know up front what limits are placed on the costs by your lender.  Due to the mortgage meltdown tighter restrictions are likely and you should ask questions to be sure you are getting the best deal possible. 

Using a mortgage broker for your home purchase could be a better option in some cases.  While they will charge a fee they might also have a wider variety of mortgage options.  Depending on your area there is still 100% financing with USDA.  For property that needs updates and repairs 203K loans are ideal but not all lenders handle this type of financing.