Whether you’re purchasing your next owner-occupied property or an investment home for your portfolio, chances are you’re going to need to work with someone in mortgage lending. While your residential lender should work with you to match you with the best home mortgage for your situation, it’s important that you have a keen understanding of the industry in order to garner the best deal from mortgage lending institutions.
To select from the plethora of residential mortgage lenders who are available, you need to know the basics of the kind of mortgage you want. You need to know the length, terms and rate that will make your property work for your budget. Once you know these, you can shop among the residential mortgage companies available for the one that will work for you.
When looking at various residential lenders, among the key points to consider in your search are:
- The type of home mortgage you wish to obtain;
- The contents of your credit report that home mortgage companies will pull;
- The special circumstances that drive your search for a second mortgage lender.
Action Steps
The best contacts and resources to help you get it done
Know your mortgage needs and budget - and stick with them
When dealing with residential mortgage lenders, it's important to know ahead of time what you really can afford. Often, mortgage lending institutions will loan you more money than is really wise to accept. But if you know what you have to spend and what type of mortgage you're looking for before you even sit down, you're way ahead of the curve in getting a great deal on a home mortgage.
I recommend: E-Loan offers online applications for its mortgage products. In addition, it offers several
mortgage tools to help you choose the right mortgage for your needs. Well-known residential lenders include the
LendingTree and
Wells Fargo.
Make certain that you apply with the appropriate residential mortgage companies for your credit
In a perfect world, everyone would have clean credit. Because we instead live in the real world, though, things aren't so perfect. If you have less-than-perfect credit, it can seem impossible to find residential lenders willing to work with you; they are out there, though.
I recommend: Total Bankruptcy can help you connect with
residential mortgage firms that specialize in post-bankruptcy mortgage lending.
Choose a second mortgage lender that fits your unique needs
If you're in the market for a second mortgage loan instead of a primary, your search can be much more difficult. It doesn't have to be impossible, though. There are several second mortgage lenders available who are willing to cash out your home equity for a variety of reasons.
I recommend: Ditech is one of the home mortgage companies that offers
second mortgage loans for a flat fee. This can save you overall over lenders who charge more in closing costs and/or roll them into your second mortgage loan.
Tips & Tactics
Helpful advice for making the most of this Guide
- Always read the fine print. Some residential lenders will try to slip fees and charges in without really discussing them with you. Among the most popular are repayment penalties.
The official source of Residential Lenders is the Residential Lenders page at Business.com
Related Resources from Business.com
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