While the housing market cool-down we were all hoping for seems to be slowly making its way across the nation, the blazing hot embers in the Hampton Roads market haven’t yet been quite snuffed out. Median home prices are on the rise with the region experiencing another record high in May — $328,795. Mortgage rates are on the rise as well, sitting at about 6% in June.
Despite the ever-changing market, you might be thinking that now is the best time for you to buy, so you’ve decided to take your first step and find a lender. If so, great! You’re on the right track.
But how do you find the best lender for you? Here are a few tips to help you as you shop for a lender.
Know Your Credit Score and Your Debt-to-Income Ratio
If you’ve decided to buy, you’ve likely prepared your finances for such a major purchase. A strong credit score is critical in getting approved for a loan. If you still need help getting your credit into shape, we have you covered. Check out our tips for getting on track with your credit here. Along with a great score, you want to make sure you have a low debt-to-income (DTI) ratio. Lenders want to know that you can afford a mortgage on top of any other lingering debt you have out there.
Research Loan Programs
There are an array of loan programs that fit the needs of all kinds of people. Make sure you are aware of all the options, so you can select the best one for your needs. Some loans require lower down payments, like a VA loan or a FHA loan. There are even programs out there specifically for first-time home buyers.
Ask About Closing Time
Competition is still pretty fierce, so don’t miss out on the perfect home just because your lender is a little slower than it needs to be. As soon as you decide on a lender, find out how quickly they can close on a loan.
Shop Rates
Like any other purchase, it’s always a good idea to shop around before deciding on a lender. Since rates can vary from lender to lender, it’s wise to search thoroughly for the best rate quotes.
Check Out Reviews
Don’t select a lender solely because it’s a big brand name. Check out reviews to see what actual customers who have worked with the lender have to say about their experience. You want to work with someone who can be trusted.
Follow these tips, and you’ll be on your way to connecting with a reputable lender. Don’t forget to ask your agent or broker for assistance on mortgage guidance as well. If you’re a first-time buyer looking to get into the market, check out our first-time homebuyer checklist to help you plan.
Connect with one of 9,000 local agents today to help you take advantage of the market. To find out what you can afford, check out our mortgage calculator to help estimate your monthly payments. Download the REIN.com app and put the power of fresh and accurate listing data in the palm of your hand — available free in the Apple App Store and Google Play Store. For local listings you can trust, start with REIN.com.
