If you are entering the real estate market for the first time, you will want to find a lender who can provide the best mortgage loan for your circumstances.
In Florida, the field is competitive. Here are five tips to help you find the best lender for the property you wish to buy.
1. Prepare your finances
Your credit score will help determine the type of loan you can obtain and the lender who can offer it. A higher score gives you more choices in loan programs as well as lower interest rates. You can also improve your credit score by paying your bills on time, paying off credit cards and improving your debt-to-income ratio.
2. Determine the type of mortgage you need
There are various types of home loans:
- VA loans for active military members and veterans
- FHA loans with lower credit score requirements and lower down payments
- Conventional loans for borrowers with good credit standing
- Jumbo loans for expensive properties
3. Compare mortgage rates
You can search for mortgage rates online, keeping in mind that the quotes are just estimates. A lender will look at your credit information and process a loan application before providing an accurate rate.
4. Get mortgage preapproval
A mortgage preapproval letter shows that you are a serious buyer. Preapproval will save time when you are ready to make an offer on a property. You will need to provide a prospective lender with information about your income, assets and debts.
5. Compare loan estimates
A loan estimate contains information such as the interest rate, monthly payment and estimated closing costs. Compare estimates from at least three lenders. You may wish to ask your real estate attorney for help with this kind of review and guidance concerning the best loan for your particular circumstances.
