If you’re like most people, you’ll need a mortgage loan to buy a home (unless you opt for owner financing, which is a great option for many people).
So if you’re searching for a mortgage lender, how do you know which one is right for you?
Related: All about owner financing
How to Find the Right Mortgage Lender
When you start mortgage-shopping, ask yourself:
- Will I qualify for a conventional loan?
- What options do you have if you won’t qualify for a conventional loan?
- Could getting a mortgage online be an option?
#1. Will I qualify for a conventional loan?
Most people use conventional loans because they tend to have the lowest interest rates. However, you have to have a credit score of at least 620, a down payment ranging between at least 5 percent and 20 percent, and a maximum debt-to-income ratio of 43 percent.
#2. What options do you have if you won’t qualify for a conventional loan?
If you won’t qualify for a conventional loan, you might still qualify for an FHA, VA or USDA loan. You’ll need a lender that offers those options, provided you have a minimum credit score of 580 and a down payment of at least 3.5 percent (neither of which apply to VA loans, by the way).
Related: What is a VA loan?
#3. Could getting a mortgage online be an option?
People are trending toward online mortgages, where you apply and submit documents over the internet. If you prefer going to a loan officer’s office, though, this type of loan isn’t going to be right for you.
Are You Buying a Home for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
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