Tips for Choosing a Good Mortgage Lender

If you are considering a mortgage for a home purchase or refinance, you will find a variety of lenders and banks with just a simple Google search.  With so many options in the marketplace, how do you find the best deal? Unethical and inexperienced loan officers were partially responsible for the subprime mortgage crisis in 2007 so it’s important to find a qualified mortgage lender for your loan transaction.  

This article is written by Cory Ruppersberger, president and owner of Best Loan Choice, Inc., a mortgage lender in Baltimore City, Maryland. Cory also has experience as marketing consultant and spent several years as the owner of Direct Lead Source which provided live telemarketing leads to hundreds of mortgage lending companies across the United States.

Ask questions 

When searching for a mortgage lender, it is important to probe your loan officer with questions about your loan. If you have any concerns or questions with respect to the prospective mortgage, then make sure to present this to your loan officer before your settlement date. If the loan lender is not responsive to your inquiries make sure to find the right lender for this important financial transaction. A good mortgage lender should offer clear and precise information about the loan financing process.

Search for the right loan product

When researching various mortgage lenders, it’s always good to find as many mortgage loan programs of which you might qualify. If a bank or mortgage lender has only one or 2 mortgage loan programs, it might be smart to shop around.  There are many different types of mortgage loans based on your credit qualifications and or the term of the repayment period.   Be careful of loans that have risky features and be prepared if the rate has an adjustable term.  If interest rates increase in the future on an adjustable rate loan your payment could increase to a payment higher than you can afford!  Also keep in mind that there are programs for borrowers that have little to no down payment such as USDA and VA loans.  Your loan lender should be able to explain the benefits and qualifications for all of these loan programs.

Ask for referrals

 It’s always good to ask for referrals from your friends and family when you choose your mortgage lender.  Don’t always assume that the big banks are good at efficiently processing your loan to closing.  Often your local mortgage lender or broker, can offer better rates and service.  Websites such as Zillow offer customer reviews on mortgage lenders and loan officers.  *Check to see if your lender has a 5 star rating on Zillow. 

Interest Rates 

Finding the most competitive rate is an important part of the loan process.  Even a small percentage of higher interest can cost you thousands of dollars in cumulative interest over the life of the mortgage loan. Most mortgage lenders will match a competitive offer so make sure to shop the market for the best rate.  Regardless of your credit score, it’s still possible to find a competitive rate.

Picking a mortgage lender is probably your most important decision when you are buying or refinancing a home. While there are a variety of mortgage lenders to choose, it’s important to do your research and pick the best lender for a smooth and successful transaction. Using these tips shared by Cory Ruppersberger will help you save money over the long term by picking the best mortgage lender for your loan transaction.

*Cory Ruppersberger the writer of this article has a 5 star rating as Zillow preferred lender.  See his reviews at the following link:  https://www.zillow.com/lender-profile/Cory%20Ruppersberger/

Go to www.bestloanchoice.com or call Cory Ruppersberger at 410-591-6131 for more mortgage related questions.  Best Loan Choice, Inc. is licensed in MD, VA. DC NMLS#1191010 NMLS#196039

Useful Tips Home Buying Tips by Cory Ruppersberger

Purchasing a home may be the single biggest financial transaction that you will ever make. That’s why doing it right the first time is very important.  There are specific credit qualifications required in a home loan transaction. Obtaining knowledge on this subject can help you start realizing your homeowner dreams with a fast and easy process. 

Here are some no-hassle home buying tips shared by Cory Ruppersberger owner of Best Loan Choice, Inc., a mortgage lending company in Columbia MD :

Strengthen your credit: A good FICO score will help you qualify for the better interest rate. A FICO score of 740 or higher will allow you to obtain the best interest rate and help you avoid paying costly discount points and costly “out of pocket” closing costs.   By lowering your interest rate, you will save money over the life of the loan. For preliminary credit check, it’s always smart to obtain a free online credit report before you submit your loan application to any lender.  Also, you should consider paying off credit cards and resolving any credit disputes.  This process alone could increase your credit score by as much as 25%!

Get a Pre-approved loan: Before hiring a real estate agent, you should apply to several lenders within a two week period so that the excessive inquiries will not damage your credit score. Understanding your monthly payment terms will help you develop a personal on budget based on how much of housing payment you can afford. 

Without a pre-approval letter, most buyer won’t consider an offer on a property.  Furthermore, your real estate agent may be reluctant to show you homes without confirming your loan qualification.

Shop for your mortgage: Many people find shopping for a mortgage to be a strenuous process.  Nevertheless, it is a necessary component to determining your housing budget.  There are many different loan types and terms based on the client’s ability to pay.  Fixed rate terms can be 30, 20, or 15 years.  There is also a range of down payment options ranging from “no money down” to 20% down options (20% down allows borrowers to avoid mortgage insurance).

Explore debt to income ratio qualifications: Lenders mostly use “28 and 45” ratio to determine if you qualify for a loan. Your intended housing expenses must cover 28% of your gross income before you pay taxes. 

Monthly expenditures on your outstanding debts, when combined with your housing expenses, must not exceed 45% of your gross income.  However, FHA will allow ratios up to 55% but will require a higher amount of mortgage insurance to be paid on the loan.

First-time buyers programs: If you qualify as these have much lower down payment requirements.  These programs are offered by various states and local governments. You can ask your broker or human resource department for specifics regarding borrowing those assets.  The United States Department of Agriculture also offers a $0 down loan in areas that are consider rural.  The Veterans Administration also offers a similar $0 down program to veterans of the United States Military. 

Cory Ruppersberger is a successful business entrepreneur and owner of a very successful mortgage lending company in Columbia MD called Best Loan Choice, Inc. and has helped several people to achieve their dreams of being a homeowner.