Is COVID-19 going to cause another housing crash like we saw in 2009? No. Housing, like any other market, is driven by the law of supply and demand. Simply put, how many homes are
Four Reasons Why Choosing The Right Lender Is So Important
Dated: August 8 2018
Make shopping for a lender a crucial part of your home-buying process
Since buying a home is one of the biggest purchases of your life, and perhaps the biggest, it’s important to have a great team behind you. Will your team keep the process going and keep you informed every step of the way?
Here is an important bit of advice: Make sure you carefully pick your lender!
“You get to pick your Realtor, pick your home, pick your insurance company, pick your attorney, you should also pick your lender,” says Senior Loan Officer Christa Votaw of Mortgage 300. Choosing the right lender is one of the most important decisions to make when you find the perfect home. Do you know that your credit being checked by multiple lenders does not much affect your credit score? From a lending perspective it is all about credit tiers, which are impacted in increments of 20 pts… (so remember a 720 is the same as 730 from a rate perspective).
Carefully consider these four important questions:
1. Should you ask your Realtor to recommend a lender?
Yes! Make sure that you have a full TEAM surrounding you. When the realtor and lender have a relationship, you will be taken better care of because everyone will be working towards the same common goal, home ownership for you.
Open communication is the key so that you know where you are at every moment throughout the entire process. Good loan officers care deeply about helping their borrowers. They want to make sure that they provide the best service. So trust them. Your Realtor will put you in touch with a lender that will go the extra mile for you, one that you will TRUST.
2. Does the “SHOE” fit?
How do you know if your lender fits what you need? Say to yourself, "When I have that first consultation with a lender, I will answer and ask questions and carefully listen to every word.” Is this a primary investment? A second home? What is the length of time you plan to live there? What is your credit score, your down payment? Each one of these questions answered has an impact on a loan program that might be your best fit. Your lender’s job is to listen and then provide you with options based on your goals.
A good mortgage loan officer should provide options for you to consider and then explain the reasons behind the options. Remember, there are many different kinds of loans, and remember most lenders can offer the same rate to you, but you should choose a lender that can think outside “the box” to present you with the best loan options for your personal situation.
3. Is your Lender only a Paper Pusher?
Once you find the perfect home and get a ratified contact, you don’t want a lender that is just going to collect the documentation and then push you into closing.
Christa says "I always make sure that my clients know that I am here to help answer any questions that they have. I urge them to think about the process of 'buyer education.' What impact would it make if you as the Buyer put more money down, or if you pay off a credit card as an alternative to putting more dollars down? Sometimes, paying down expensive and current debt is the better thing to do for your overall monthly liability; it will allow you to be in a better financial situation as you move into your new home. " Having a loan professional and Realtor by your side who are not afraid to have this conversation with borrowers helps greatly in in the long run. Giving advice and tips along the way is an important step in the process. If you are willing to learn, a great lender will be willing to explain everything to you all along the way. Ask every question that comes to mind.
4. Should you go with your GUT?
Sometimes. Your gut might well tell you that your current lender is not giving you as much information as you need. Remember that word: Trust. Home buying doesn’t have to be scary if you have the right team in your corner. Trust is important.
You need to make sure that in your home buying process you do NOT only select the realtor that you want to work with and then think that your job is done. Selecting the right mortgage loan officer, your mortgage loan “specialist,” is going to help ensure that you have a smooth stress-free closing.
There will be challenges along the way as you approach your closing date. This is inevitable in the loan process, yet you can control the people that you surround yourself with, people who will walk with you through those challenges. YOU get to DECIDE who YOU want to work with.
Who will you choose?
Blair Halford is a Charleston native, and having grown up here and attended Porter-Gaud and the College of Charleston he has appreciation for the Lowcountry lifestyle. His extensive knowledge of the a....
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