3 Tips For Finding A Mortgage Lender That Can Help You Get A Custom Home Loan For Your Needs

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Preparing to purchase a home is an exciting adventure. Once you have your dream house in mind, you'll need to get the mortgage process started. Even if you're not a first-time home buyer, finding the best mortgage rates and terms can be a daunting task, especially if you are hoping to obtain a loan that is personalized to your unique needs. Here are 3 tips for finding a mortgage lender that can help you land a custom home loan that meets your financial goals.

1) Ask how the mortgage lender handles custom loans.

Sometimes you need a loan that doesn't quite fit into traditional mortgage categories. Perhaps you are looking for a way to create a bridge between your new home purchase and the time it takes to sell your old house. Maybe you have significant assets but limited income, making it difficult to obtain a conventional loan. A full-service mortgage lender can help you find the right loan program to accommodate these kinds of special situations. When you are searching for the right mortgage lender, be sure to ask how custom loans are handled and if the lender has the capacity and expertise to tailor a loan to your needs. Ideally, it's best to look for a lender that will use an individualized yet comprehensive approach to your case, taking into account your debt-to-income ratio, your down payment or savings, and your credit score.

2) Find out how long it will take to close on a custom loan.

Since you will be obtaining a non-traditional loan, it's important to get a good idea of how long the entire process will take from the initial discussion with the lender and the completed application to the date you can move into your new home. Conventional mortgage loans typically close in a short period of a few weeks to as long as a month or two. Ask the lender if a more customized loan will require an extended closing timeframe. Several factors can influence the length of time a personalized mortgage loan will finalize, including the lender's underwriting procedures, how efficient the lender's technology is, and the number of staff available to actually process the loan. Knowing an estimated timeline can help you decide if the mortgage lender will be able to facilitate your loan by your desired move-in date.

3) Determine if the lender offers discount points.

Some mortgage lenders allow buyers to purchase points in exchange for decreasing the final interest rate. These points give you the chance to pay some of your interest up front, which will bring down your monthly mortgage payments. This is a nice option to incorporate into a customized rate if you have more funds up front and would like to save money over time. The lender can explain whether or not the points will help you meet your financial objectives. The terms regarding discount points differ from one mortgage lender to another, so don't forget to request the details about this program before you choose your lender.  

Selecting a mortgage lender can be a challenge, but the tips above can guide you towards the right company that will create a custom loan for your specific needs.

Reach out to a local mortgage lender today for more information.

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22 October 2020

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