Shopping for a Mortgage Lender

Congratulations, now that you have increased your credit score, it is time to shop for a mortgage lender. A mortgage lender is the person that will assist you with obtaining a loan to buy a home. Understanding the features and requirements of each major mortgage program can help you figure out which one is right for your situation.

Which mortgage is right for you?

• VA loans can help active and veteran military members and USDA loans are available for rural home buyers. Neither require a down payment.
• FHA loans have lower credit score requirements than other mortgages and require as little as 3.5% down.
• Conventional loans are generally geared to borrowers with good credit, and some require as little as 3% down.

Compare rates from multiple mortgage lenders
Speak with a mortgage lender to determine if they offer the types of loans you want and/or have a loan product that fits your needs and wants. Also, discuss the rate(s) they are offering on the loans and keep in mind that the rate quote you see is an estimate. A lender will have to pull your credit information and process a loan application to provide an accurate rate. However, the actual rate can not be locked in until you find a home. 

Once you have received information from various lenders, narrow the list by considering the following:

• lowest rate
  
• type of mortgage
  
• amount needed for down payment
  
• amount needed for closing costs
  

Get a Pre-Approval
A pre-approval is a letter from a mortgage lender that shows how much you’re qualified to borrow. This can help you set a home buying budget and strengthen your purchase offer when you find a home you want to buy. To get pre-approved, you’ll have to provide information about your income, debts and assets. Lenders typically require:

• Social Security numbers for yourself and any co-borrowers.
• Savings, checking, and investment account information
• Information about outstanding debt obligations, including credit card, car loan, student loan, and other balances
• Two years of tax returns, W-2s and 1099s
• Salary and employer information
• Information about how large of a down payment you can make and where the money is coming from (savings, job, gift from a family member, etc.)

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​The Hennigan Realty Group has multiple preferred lenders that offer various mortgage products and they work with down payment assistance programs. Give us a call at 832-305-5903 or 623-4MYHOME for more information regarding our preferred lender referral partners.