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Shop For A Lender Not Just A Rate

Most borrowers just happen to be great shoppers and great shoppers tend to find the best deals and best prices around. Sure, it takes some work, but when you’re talking about shopping around for a $100,000+ investment, then finding the best deal to finance that investment is key.

But sometimes finding the best deal isn’t always the best thing for you, especially when it comes to a mortgage — something you’ll likely become well acquainted with over the next decade and a half or so. Instead of shopping for the best rate, consider shopping for the best lender. Here’s how to do it.

Understand the Process

The mortgage process isn’t exactly like other large purchases such as vehicles — there is a lot of red tape and a significant amount of time involved to get everything right. Just know when you’re shopping for a lender that the good majority of their job is to help you through all of the legwork in the transaction.

Here’s a basic rundown of the mortgage process:

1. Mortgage Application – Applying for financing is the first, most basic step.

2. Pre-Qualification – Your lender will pre-qualify you for credit based on the information you provided in your application.

3. Information Gathering – You’ll provide basic documentation such as proof of employment, income, and expenses.

4. Underwriting – Income is verified, the home is appraised, and your final loan amount is decided.

5. Closing – All of the paperwork is signed, sealed, and delivered so-to-speak.

Vetting Lenders

Of course, there are more less-involved steps to the mortgage process and not every mortgage is exactly the same. The point here is that you’ll need a lender who is 100% competent in the process and can help you not only navigate the quagmire of mortgage steps, but can also search the marketplace for the best loan product available.

When vetting lenders, ask plenty of questions! Make sure your lender knows what they’re doing and has plenty of experience in residential real estate. You certainly don’t want to chance this part of the process.

Avoiding Speedbumps

Inevitably, unless you’re a seasoned borrower, there will be a few snags along the way. Fortunately, both you and your lender can avoid potential speedbumps by being as prepared as possible to tackle the documentation challenge set before you. Having to dig through folders and archives of old paystubs and tax documents can really be a labor on you and slow down the progress you make towards getting your loan.

Be prepared and avoid the speedbumps by gathering all of what you may need for documentation early in the process. Be ready to offer at least two years worth of tax documents and W-2 forms as well as several months of bank statements and a few paystubs. Getting this information ready and handy will significantly improve the process overall.

Get Pre-Qualified

Once you’ve got your documents mostly gathered, it’s time to get pre-qualified. Pre-qualification is super important because it will give you a very sound idea of just what you can afford both in payments and in a lump sum for your new home. As a savvy shopper, it’s good to know exactly what you have in your pocket when it comes time to make an offer on a home.

Pre-qualification through Tidewater Mortgage is simple and can be completed with a few clicks in our online application. You could get an answer in as little as 24 hours which will give you more time to shop, plan, and research your new home purchase!

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