Tips on Picking Your Mortgage Lender
Selecting a mortgage can appear to be a monumental task. There are many lenders out there clamoring for your custom, many with fancy websites and enticing spiel to attract your attention.
However, not every loan is as good as it appears on the surface. The following are 6 essential tips on picking your mortgage lender (plus a bit of insider information on when going down the unconventional route could be more advantageous)
Tips on Picking Your Mortgage Lender: 6 things to consider
- 6 things to do before signing on the dotted line
- No bank or government-backed option? Not necessarily a problem…
6 things to do before signing on the dotted line
The main reason most of us look for a mortgage is to purchase our primary residence. However, even if you’re looking for a second or investment property, there are still similarities in how you should go about selecting your lender
- Understand the different types of lending: Do you know the difference between conventional lending, those on offer to veterans (VA loans), ones through the Federal Housing Association (FHA), and more? Take your time to read through and become familiar with what’s on offer.
- Can you improve your credit score? This is one thing that mainstream lenders will be looking at. So, can you do anything to make yours better? Reduce any debt, such as on credit cards, or pay off any loans. Be sure not to open any new accounts in the few months leading up to a mortgage application, as this leaves a mark on your credit rating.
- Streamline your household (and other) spending: While lenders don’t usually take your bills into consideration, it’s a wise move to see if there are any areas you can improve. The more of a cash safety net that you have for unexpected expenses, the better.
- Compare rates from multiple lenders: A broker can also help you do this, but nothing beats a bit of self-research. Be sure to look at least three sources before making a decision.
- Get pre-approved: This involves a lender making a soft credit check and determining if they think you can afford the loan. It’s not a guarantee of funding, but it gives a very real idea that your financial planning is sound.
- Read all the fine print: Before committing, be sure that you’ve fully understood the Ts & Cs. This will ensure that, further down the line, you don’t have any nasty financial surprises.
No bank or government-backed option? Not necessarily a problem…
Not everyone is looking for a loan to fund their primary residence. In such cases, the so-called “hard money” route can be a better choice.
These lenders don’t take so much of your financial circumstances into account. Instead, the money is lent purely on the value of the property and the expected income you can make. These are very popular with those looking to buy, rehab, rent, refinance, repeat (BRRRR), fix & flip, etc., and can allow you to invest in multiple properties.
Many people have turned away from traditional pensions and savings, instead choosing to invest in real estate to secure their financial future. While this isn’t suitable for everyone, lending options now make such a move possible for everyone, not only those with large amounts of cash at their disposal.
Small and Medium-Sized Real Estate Investors Should Contact BRRRR Loans
If you’re looking for funding for an investment property, BRRRR Loans is one of the fastest-growing providers in the country. We specialize in competitive interest rates, quick closures, and we lend money for a wide variety of investment needs.
We also offer bridging loans for those who don’t want to lose out on that dream home while waiting to sell their primary residence.
Discover more at https://www.brrrr.com/ and call us today to discuss the art of the possible…
Buy, Rehab, Rent, Refinance, & Repeat. A nationwide direct lender to real estate investors. If you have a project that needs to be funded, you’ve come to the right place.