To help you get the best deal on your home loan, here are a few of the major pitfalls that you should know about when beginning the process of getting pre-approved:
1. Beware of advertised loans with incredibly low interest rates. Your loan rate is critical, but many lenders use ‘bait and switch’ tactics or they fail to reveal that these kinds of loans usually have increased up-front costs.
2. Go with a local lender. Our market is unique, and out-of-town or online lenders don’t always understand its nuances. If they are inexperienced with lending against the type of property you buy, you may not get the most favorable rate. Other brokers often fail to get the loans placed because they don’t understand which lenders will loan against which types of property. Plus, if there is a problem and you need to talk to someone immediately, working with a local lender gives you the opportunity to walk into their office and get your questions answered.
3. Go with an experienced loan professional. There are scores of new mortgage brokers and loan representatives in the market right now and not all of them have adequate oversight. An inexperienced mortgage professional can kill your deal through mismanaged paperwork and delays in underwriting. They also don’t always know where to go for the best rates.
Please call or email us if you need a recommendation about which mortgage broker or lender is the best one for your situation. We can provide you with excellent contacts that have proven track records and satisfied customers. That way you’ll be able to take this very important step with confidence—and enjoy greater peace of mind. Call James at (970) 999-2816.