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4 Things to Consider when Searching Home Purchase Lenders Online

By on September 3, 2014 in Mortgage

For those of you who are ready to buy a new home, you are going to need to get a mortgage from an experienced home purchase lender. Today more and more people are finding their lender online because of its convenience and simplicity! However, there are a few things you will need to look out for to make sure that your lender has your best interests at heart and their own.

 

  • Compare current rates from multiple lenders

It has never been easier than it is now to compare the current mortgage rates different lenders offer. You typically have two choices when comparison shopping online. First is to find a few different lenders online, search their websites and request their current rates. An easy way to find local lenders is to search a local search site such as local.com, yelp.com or just search google local listings. A second approach is to let someone else do the searching for you. Sites such as bankrate.com & lendingtree.com are examples of websites that can provide you access to current mortgage rates instantly.

 

  • Understand you options

30-year fixed rate mortgages may be popular but that doesn’t mean that is the proper loan type for your needs. Maybe an FHA loan works better than a conventional loan? Does an adjustable rate mortgage (ARM) make more sense than a fixed rate? Do you qualify for a VA loan? These are some of the questions a good lender is going to be able to help you work through. Only by understanding your current financial situation and needs will a quality home purchase lender be able to place you in the proper mortgage. Be careful of lenders who try to push you into a particular type of loan. Since a mortgage will most likely be the largest purchase you will ever make, you will want to feel confident you are getting the right type of loan the first time.

 

  • Get a written “pre-approval”

There is a big difference between “pre-qualify” and “pre-approval”. While many home purchase lenders will gladly “pre-qualify” you, this mean almost nothing as it is nothing more than a guess as to what you may qualify for. Once you find a lender you feel comfortable with, look to get “pre-approved”. This is a much more in-depth process including pulling you credit, contacting your employer and back, ect. Getting a “pre-approval” isn’t a guarantee of getting a mortgage but it does get you much closer to final approval.

 

  •  “Lock-in” the rate you are quoted

Interest rates can change daily even multiple times in one day. For this reason it is important to ask a lender to lock in a rate once they quote you one. A 30, 60 or even 90 day rate lock-in will protect you from an unexpected rise in interest rates. A locked in rate from an online home purchase lender will give you a better understanding as to how long you have to shop before possibly losing the rate.

Buying a home is a big deal and making sure you have the best possible mortgage and the lowest possible price is important. Proper planning and thorough research can provide help you position yourself for homeownership. Many home purchase lenders are eager to earn your business; just make sure you understand your options and pick out the best loan for your financial situation.

About the Author

About the Author:

Husband, father, tech junkie and sports enthusiast. I have owned and operated ezratequotes.com as well as a number of others sites since 2005.

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