Have you ever felt like home is where the 30 year fixed rate mortgage is?

When was the last time you were considering buying a new car?  Maybe you knew that you wanted a gray SUV with a sunroof.  Did you go online and research what makes and models were available?  Did you then follow-up with which were the safest, the most reliable, highest-rated and which had the best gas mileage?  And since most of us don’t have stacks of cash buried in our backyards, did you compare pricing and seek out the best deal? If you’re like most Americans, you did.

Then, why would you not take the same due diligence approach when it comes to mortgages?  Americans are not doing their research.  The Consumer Finance Protection Bureau (CFPB) finds that less than half of U.S. borrowers shop around for a mortgage.

Albeit, car buying is a much simpler process than applying for a mortgage, which can be intimidating and confusing.  Finding the right home mortgage lender could take time and could become a lengthy process, but there is no comparison to you doing your research.

When searching for a mortgage lender, remember it involves more than just getting a good interest rate; you want to work with the best mortgage companies and create a trusting relationship with your lender.  This person is going to hold your hand throughout the process, so get ready for a new best friend for a time being.

Here are a few tips to help you get a jump-start on the mortgage loan process.

1. Does your Credit Score Need a Tune-Up?

Make sure your credit is in shape.  Homebuyers need to meet certain credit and income criteria.  Lenders need to be sure you can repay your loan.

How can you help yourself do this? Prove to your lender that you are financially responsible, prove that you have been gainfully employed, if you have any debt, make sure you are making your payments (in full and on time).  During this process, you should also avoid opening any new lines of credit.

Each step you take to improve your credit helps, and although it might take a little time before your credit score starts to climb, you will be rewarded with a better credit score and qualify for a  lower interest rate when you do ask for pre-approval.

2. Look Inside the Lending “Hood”

Who’s who in the land of lending.  Do your research and find out the difference between credit unions, mortgage bankers, correspondent lenders, savings and loans and mutual savings banks.  It would also beseech you to search the Better Business Bureau for reviews and any additional information on any potential lenders in your area.

3. Compare Rates

What we learned from our car shopping analogy is that taking the time to do your homework pays off.  As mentioned, there are all kinds of mortgage lenders, which means you have more options than ever.

Research several lenders and get several quotes in hand.  Then compare costs and the varying benefits each lender offers and chose the one that makes the most financial sense for you.

When the time comes to choose your lender, just like you would ask a friend who owns the car you researched and are considering purchasing, ask for referrals from friends, family or your real estate agent who they use as a lender and if they are happy.

If you’re already working with a real estate agent ask her or him to recommend a mortgage professional.

Don’t let your lending process backfire.  Ask questions, then ask more questions, until you have a full understanding of the process.  Do not be afraid to seek out answers, and do your research. If you don’t understand something, speak up.  If something doesn’t seem right find a new lender who is willing to take the time with you to help you.

The Certo Team
55 N. Arizona Place
Suite #103
Chandler, AZ 85225
602-429-6789