Should You Shop Around For A Mortgage
Many of my clients want to know if it makes sense to shop around for a mortgage. The answer is, absolutely. All FHA loans are not the same. ABC Bank may have different requirements or overlays on an FHA loan that XYZ Bank doesn't. For example, a higher credit score or a different debt to income ratio. There are minimum requirements for government loan programs like FHA, but each lender can have their own requirements on top of those so if you get denied by one lender, as long as you are close, it is worth contacting another lender. A no with one lender doesn't mean you won't qualify with another lender.
People also worry about the impact of shopping loans and its impact on credit score. The truth is while you your mortgage shopping, there is not a big hit on your credit score for those credit inquiries as they more or less count as one inquiry as long as done within a specific time frame.
If you are going to shop around, it makes sense to have at least one mortgage broker in their who can shop around for you. Also, don't lock yourself into just one mortgage type. While FHA has the most flexibility and generally a lower down payment, you do have to pay mortgage insurance for the life of the loan which will increase your monthly payment. Try qualifying for several different types of loan programs to see what will give you the most benefits.
It is also worth comparing rates of the loan, costs of the loan and service from the lender.
If you are thinking of purchasing a home and don't know where to get started. Contact me today and let me connect you with several LOCAL lenders that I work with that will find the best rates and programs for you and provide you excellent service.
After all, you are paying a mortgage right now (unless you paid off your home or live in a tent or RV), why not pay your own and earn that equity.
Putting clients needs first. I am a REALTOR with I Think Realty of Winter Haven. After working for 20 years in Higher Education Administration dealing with student misconduct such as cheating, alco....