How to Choose a Mortgage Lender
You have made the decision to purchase a new home in Hixson TN built by Riverstone Construction. The next step is very exciting as you begin to look at floor plans and consider options for your new home. As part of this process, you will also need to find a mortgage lender. Although some might find this part of the home buying process as scary or overwhelming, we are here to help you understand the process of choosing the right mortgage lender.
In this first of a two-part series, we are going to share with you a few tips on how to choose a mortgage lender.
- Review your finances.
Now is the time to assess your limits and finances. Be sure to take a personal deep dive into your financial situation and review your credit score as well as assess your debt-to-income ratio. Learn how to calculate your “Debt-to-Income Ratio” or DTI. Visit our Easy 5 Step Guide to a Home Mortgage to learn more.
Before you make any large purchase, your first step in the home buying process is to learn what you can afford and what you are comfortable spending. Speak to a mortgage lender who can help you determine how much house you can really afford, how much you will need for a down payment, and get pre-approved for a mortgage. Remember to factor in monthly mortgage costs, taxes, insurances, living expenses, and other monthly bills you may have.
Lastly, remember, you can always add more home features (like bells and whistles) after you have closed and settled into the home.
- Call a friend – ask for referrals.
Once you have gathered information about your finances, now is the time to begin meeting with a lender. Your lender does not have to be local to help you finance your new home in Hixson TN.
Call your friends and family and ask for referrals. Also talk to your Riverstone sales associate because they will have some preferred yet helpful mortgage lenders for you to consider. Typically these preferred lenders have an advantage to working with you on your Riverstone new home purchase.
Know that is OK to meet with a few different lenders and lending companies to compare what each one offers. You also want to find a lender where you feel most comfortable working with – especially as you share your finances with that individual.
- Have a discussion.
Learn about current interest rates and where rates are trending. Your interest rate is determined by multiple factors, including your credit score, the location of the home you purchase, the size of your down payment and your loan type, term and amount.
Ask and learn more about your credit score. Discuss with each lender the fees involved and what your payment would be at closing and for the monthly mortgage. Don’t forget about future property taxes and if there are any additional costs involved with the loan.
Take time to learn about the different types of mortgages that are offered, including:
- conventional fixed-rate loan that has a term of 15- 30 years;
- adjustable rate mortgage where the interest rates change over the life of the loan;
- FHA loans which help those with lower credit scores limited down payments; and
- VA loans that are only available to veterans, active servicemembers and their surviving spouses.
Rest assured that your new Riverstone home in Hixson, TN will be a sound investment. Find and work with a mortgage lender that helps you best understand the lending process and makes feel comfortable.
Tags: homebuilder in Hixson TN, new homes for sale in Hixson TN, new homes in Hixson TN
