Which Mortgage Lender Should I Choose?

Which Mortgage Lender Should I Choose is the question many home buyers have when starting the home shopping process. When you have decided to either purchase a home or refinance your current home, you will need to seek the help of a mortgage lender.  A mortgage lender can be a banker, mortgage banker, or mortgage broker.  The best way in going about choosing the right mortgage lender for you is to get referrals from friends, realtors, attorneys, insurance agents, or someone who you can trust and had a good experience with a mortgage lender.  No all mortgage lenders can suit your needs.  For example, if you had prior credit issues, you might need to seek a mortgage lender who specializes in bad credit mortgage loans.

Which Mortgage Lender Should I Choose: Types Of Mortgage Loan Specialists

If you are intending on purchasing a high end home, you might want to seek the services of a portfolio or jumbo mortgage lender.  If you had a recent bankruptcy and/or foreclosure and want to see if you qualify for a mortgage lender that specializes in HUD’s new FHA Back to Work extenuating circumstances mortgage loan program, then you might want to see a mortgage lender that does manual underwrites and accepts this new program.  Choosing the right mortgage lender is key in getting the stressful mortgage approval process off to a good start.

Which Mortgage Lender Should I Choose: Signs Of A Reputable Mortgage Lender

When you first consult with a mortgage lender, a reputable mortgage lender will most likely ask you many questions before quoting you terms and rates.  A reputable mortgage lender will most likely ask you many questions and conduct a lengthy interview.  Sometimes the mortgage interview may last an hour or more.   Some of the questions mortgage lenders will ask is about your time in your field, your occupation, your income, your prior credit history, marital status, asset information, how long you intend in living in your new home, and whether you had prior bankruptcies, foreclosures, deed in lieu of foreclosure, or short sale.  After your mortgage lender gathers all of your information, he or she will suggests the available mortgage programs that is available and the best mortgage program he or she feels best suits you.  Fixed rate mortgage loans, adjustable rate mortgage loans, FHA loans, conventional loans, VA loans, Jumbo Loans, USDA loans, and HomePath loans will be discussed if these loan programs might be beneficial for you.  Mortgage rates and terms will be discussed as well.

Fees, Costs, Rates, And Options

When you are consulting with a mortgage lender, fees and costs will be discussed.  Your mortgage lender should explain to you what the bottom line fees and costs are in a home purchase or refinance.  Mortgage rates can be bought down by paying points.  There are third party costs you should be aware of such as appraisal fees, title charges, home inspection fees, transfer costs, recording fees, escrows, insurance, and taxes.

Which Mortgage Lender Should I Choose: Specialty Mortgage Lenders

Not every mortgage lender can suit your individual needs.  Many mortgage lenders have their own internal overlays and they might not be able to help you.  Over half of my clients are mortgage loan borrowers who got denied mortgage loans elsewhere because of the mortgage lender they went to had mortgage lender overlays.  A typical example would be when a mortgage loan borrower goes to a bank and gets their mortgage loan request denied because their credit scores are 585 FICO.  To qualify for a 3.5% down payment FHA mortgage loan, you need a minimum of a 580 FICO credit score.  However, banks normally has a minimum credit score requirement of 640 FICO and so do many other lenders.  As a specialty mortgage lender, I can help those who need mortgage loans with no mortgage lender overlays.  I represent wholesale mortgage lenders with no mortgage lender overlays.  As long as you get an automated approval from DU FINDINGS or LP FINDINGS, I can help you.

Mortgage Lender Overlays

Just because a mortgage lender cannot help you, find out why.  If it is because you do not meet federal guidelines like not meeting the minimum waiting period after a bankruptcy or foreclosure, then nobody can.  However, if you do not qualify for a mortgage loan because of the mortgage lender overlays, then another lender can definitely help you.  Remember to ask your mortgage loan officer you are consulting with what their overlays are.

By Gustan Cho

www.gustancho.com

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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