How to Tell When You’re Dealing with the Best Mortgage Lender in New York
Are you looking to buy a home in New York but are having problems with mortgage lending? The secret to a successful transaction is working with a trusted mortgage lender in New York. But how can you tell if you’re dealing with the best mortgage lender in your area? We list down some points to help you find out.
5 Tips for Finding the Best Mortgage Lender in New York
To get a headstart on your mortgage loan process, use these five tips to find the best lender for you.
Prepare and take care of your credit score
It’s a well-known fact that not everyone can qualify for a mortgage loan. You have to meet certain credit and income criteria to assure mortgage companies you can repay the loan. Having a low credit score tells lenders that it is risky to lend to you, which in turn translates to a higher interest rate on your home loan.
The higher your credit score and the more you pay loans on time, the more power you’ll have to negotiate for better rates with your potential lenders. Typically, if you have a score under 580, you’ll have a tough time qualifying for most types of mortgages. So, it’s important to take care of your credit score before going out and deciding to apply for a mortgage loan.
Do your research on mortgage lending
One of your primary goals is to find the lowest interest rate and the best loan terms. Locking in a low interest rate is critical, but your choice of lender also significantly impacts your mortgage experience.
You’ll meet any of the following mortgage lenders: credit unions, mortgage bankers, correspondent lenders, savings and loans, mutual savings banks, and mortgage brokers. Direct lenders can help you with a mortgage from one specific lender, while mortgage brokers can pair buyers with multiple lenders.
Get a mortgage pre-approval
Getting a mortgage pre-approval letter before you start looking at properties will give you an edge when bidding against other buyers. The letter shows the seller that you're a serious buyer whose loan is likely to close. It's evidence that a lender has evaluated your finances and figured out how much you can afford to borrow, and therefore how much you can afford to pay. Getting preapproved now will also save time later. When you're ready to make an offer on a home, lenders will already have the information they need to process your home loan.
Shop for mortgage rates from different mortgage lenders
When you’re shopping for a lender, look at reviews for the individual loan originator and not just the broader company. A great company won’t mean much if the individual you work with on the loan lets you down.
While every lender will look at your credit score, debt, and assets, each will assess you (and your mortgage eligibility) slightly differently. This is why you may find better rates with a different lender. So it pays to shop around for the best rate.
Ask the right questions and read the fine print
Narrow your choices down by asking for mortgage lender referrals from friends, family members, your real estate agent, or by reading reviews online. Then, ask your preferred lender the following questions before sealing the deal:
- How do you communicate with your clients?
- How long are your turnaround times on pre-approval, appraisal, and closing?
- What lender fees do I have to pay for?
- Is there any chance that you’ll waive these fees or will you roll them into my mortgage?
- What are the down payment requirements?
Principal and interest payments on a mortgage aren’t the only costs of buying a home; you should ask your potential mortgage lender about other expenses, costs, points, loan origination fees, and other transaction fees. If you’re unsure of something, ask for an explanation.
Need more info?
Need more information about the mortgage loan process and looking to start one for yourself? Wondering where to find a mortgage lender? We can help. Let the team at Procopio Team at Hunt Real Estate help you with your mortgage loan application needs. We help our clients in every step of the home-buying process. We work with several trusted partners here at Procopio.
If you have a question, want to find out more about the mortgage loan process, or want to get to know our trusted partners, we’d be happy to take your call and answer your questions! Give us a call at 315-350-0571 and we would be happy to assist you with your inquiries.