Finding the right mortgage company takes time and research. And especially during these months of uncertainty, a lender can be the difference in how you navigate the home loan process. Here are a few things to look for as you make your decision.

Experience

According to Zillow, the median home price in Colorado is just over $400,000 in May 2020. Whether you’re buying your first, next, or forever home, you can expect to spend a pretty penny. So then why put your trust in a lender who has minimal industry experience?

Do yourself a favor and select a lending professional who understands mortgages inside and out. Mortgage companies that have been around for a while are more likely to provide a simple and stress-free experience for borrowers. Not to mention, experienced lenders know how to close a loan in the most efficient manner possible. 

You also want to check that a lender is comfortable handling your specific type of loan. For example, if you’re a first-time home buyer, the person you work with should be knowledgeable about the FHA program. Better yet, opt for a lender who will customize a mortgage based on your unique situation.

Flexibility

There’s no such thing as a “one-size-fits-all” mortgage. With various loan types available, it’s in your best interest to determine which option makes sense for you. Keep in mind that the loan you move forward with will likely differ greatly from your friend’s or neighbor’s.

This is where a lender offering multiple loan programs comes into play. The more options a lender has at their disposal, the greater the chance of obtaining a mortgage that’s tailored to your needs. Trust us, you don’t want to be trapped in a less than ideal mortgage.

The following programs are worth exploring as a future home buyer.

FHA

From low monthly mortgage insurance to relaxed credit requirements, there’s a lot to like about this loan. Borrowers will also feel at ease knowing they can put down as little as 3.5% with an FHA loan. Just don’t assume that every lender offers this government-backed mortgage.

VA

We absolutely recommend applying for a VA loan if you meet the requirements. The program is available to active-duty military, veterans, and qualified surviving spouses. You’ll benefit from no down payment, no mortgage insurance, and today’s historically low rates.

Conventional

Due to lending changes brought on by the coronavirus (COVID-19), many mortgage companies are limited to conventional loans. But is a 30-year mortgage the right move for everyone? The reality is that if you can afford the larger monthly payment, a 15-year mortgage will lead to greater savings.    

Integrity

This is a big one. While not all lenders get paid on commission, a select few that do only care about closing loans. Make it a point to deal with a lender whose paycheck isn’t dependent on the terms of your mortgage.

Of course, a mortgage company’s integrity extends beyond the pay structure of their loan officers. For example, do all employees go above and beyond for customers? Are mortgage consultants available to answer any questions of a potential borrower? 

There’s no doubt that the best lenders treat their borrowers like family. In the mortgage industry, that could mean helping someone improve their credit score so they can purchase their first home. Or maybe it’s pointing a discouraged borrower toward down payment assistance programs

Ultimately, you want to end up choosing a mortgage lender who’s just as invested in your success as you are.

Efficiency

It’s an odd time for those in real estate at the moment. At American Home Agents, we aren’t sure when we’ll start having open houses again. For now, we’ve embraced virtual tours and drive-thru closings.

Lenders have also been forced to adapt in response to the pandemic. While borrowers are becoming more understanding of delays, they still expect their loans to be processed as quickly as possible. Remember, the sooner you get pre-approved, the sooner you can begin shopping for your dream home.

Achieve your homeownership goals

The home buying journey starts with the right mortgage lender by your side. That’s why we suggest getting in touch with the team at American Financing. As a family-owned and operated company, they always put their customers first.

Don’t make the mistake of settling for the first lender you come across. Instead, create a list based on the criteria we discussed in this article. By making an informed decision, you’ll have the best chance of acquiring the most favorable home loan. 

See what the teams at American Financing and American Home Agents can do for you.