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When deciding which is the best mortgage company to work with, there is more to consider than whether they were your realtor’s preferred mortgage company or they had a low rate advertised online. Working with a trustworthy and reputable company that you are comfortable with is an important consideration when making one of the most important financial decisions of your life.
The Consumer Financial Protection Bureau recommends that a prospective borrower check with at least 3 mortgage companies during the mortgage shopping process; however, over 50% of borrowers wind up going with the first mortgage company they talk to.
Given the overwhelming number of mortgage companies and the complexity of mortgage options available, it is easy to see why many will simply go with someone they were referred to or bank with. Unfortunately, there can be significant differences in home loan rates, costs, and services when comparing one mortgage company to another.
So, how do you choose a mortgage company when the time comes to buy a home?
So how do you decide which company is right for you? Consider the following tips to help you make the best decision:
One place to start is to check the company’s reputation online. There are several steps and ways to go about this.
In today’s digital world, a company’s online presence is an indication of its performance in other areas of its business. If they neglect their presentation to the world online, you have to wonder what other aspects of their business they’re neglecting.
How much will a mortgage cost you? Ultimately, that’s a question you’ll want answers to. Ultimately, your mortgage cost will come down to the interest rate you’re charged and the fees involved to process your loan. Even a 0.25% difference in the interest rate can mean thousands of dollars saved over the life of the loan.
For this reason, you’d be well-advised to compare quotes to see where the best deal lies. During your search, don’t forget to check for discount points, loan origination fees, and other closing costs.
Local mortgage companies may offer more personalized service and faster closings. For this reason, local mortgage companies can provide you with more support throughout the mortgage application and approval process, and essentially hold your hand for the ultimate in loan guidance.
When it comes down to it, your home buying experience will depend on the caliber of mortgage company you choose. Here’s what you should expect from the very best mortgage companies.
Are you able to easily search current rates and costs? Is the company you are dealing with transparent in what they have to offer? Do they have tools available to help you track fluctuations in rates and closing costs over time? Unfortunately, even with today’s technology, many of the best mortgage companies choose not to show what rates they are able to offer at any given time.
Whether it’s because they think their rates are higher than their competitors, or they feel their sales department can convert more clients by talking to them before rate information is provided, many choose to keep what they can offer private.
Luckily, more and more mortgage companies are moving towards transparency as borrowers become savvier, and their expectations of what information they should have at their fingertips increases
While a solid online presence is important, the mortgage process is complex. Having an experienced loan professional you trust and feel comfortable talking to is important.
Can you call the company you are working with and talk to an experienced professional, or are you calling a call center with newly licensed order-takers that have limited knowledge of the mortgage business?
Does the person you are talking to take the time to answer your questions in an understandable way? While the mortgage industry is moving towards automation, the loan process is still very complex, with a lot of moving parts.
It’s extremely important that you are working with someone that has the knowledge and experience to deal with unexpected challenges that can often come up during the loan process.
In today’s highly regulated mortgage industry, there is no shortage of paperwork and documentation that needs to be provided:
With all the new government regulations and strict lending requirements, you want to make sure the company you are dealing with can work with you in a way that you are comfortable with and help you navigate the process for a smooth transaction.
When searching for the best mortgage company, you’re essentially doing the interviewing. Given his, you’ll want to make sure you have a list of relevant and important questions that you want and need an answer to.
To help you start this list, here are a few helpful questions you might want to ask your prospective mortgage company:
The answers you receive to these questions will give you a solid idea of the type of service you’ll receive from your mortgage company.
It’s also important to understand that there are loan limits associated with mortgages. More specifically, loan limits refer to the highest loan amount you can take out before your mortgage enters “jumbo loan” territory.
Conforming loans and FHA loans both have limits on loan amounts. Conforming loan limits refer to the limit on the size of a home loan that Freddie Mac and Fannie Mae will purchase or guarantee. For FHA loans, loan limits represent the dollar cap that borrowers can get through the FHA.
VA loans don’t have an official loan limit as of 2020, but limits may still apply. Loan limits are usually increased at the beginning of every year to reflect the growth in home prices. These loan limits are assigned to every county in every state and are based on home prices in each county.
Check out our mortgage loan limit tool for conventional, FHA, and VA loans.
Should you work with a direct mortgage lender? Or a mortgage broker? Are these the same, or different?
There are indeed differences between a direct mortgage lender and a broker. Understanding the difference between the two is important:
Ultimately, direct lenders can provide more value, control, and speed over the mortgage process.
The world of mortgages is full of terms that may be unclear to many borrowers, including pre-qualification and pre-approval. While both are similar, there are distinct differences between the two that borrowers should understand:
In short, pre-qualification is a starting point, while pre-approval holds more weight.
Your mortgage company will provide you with a Loan Estimate (LE) and Closing Disclosure (CD) as part of the mortgage process. Ultimately, their purpose is to ensure transparency.
Sammamish Mortgage’s unique and innovative Diamond Buyer Program makes it a stand-out in the world of mortgage companies. Here are just a few perks offered:
We take a different approach to underwriting, and move it to the forefront of the home buying process before an offer is even made. Unlike standard pre-approvals, the Sammamish Mortgage method ensures that your loan is underwritten upfront. This helps avoid unpleasant and unexpected surprises after the home is under contract.
When the underwriting process is completed early, sellers will be more confident in your ability to close on time, strengthening your offer and giving you a major advantage in a competitive market.
Did you know that cash offers are 334% more likely to be successful compared to offers with standard financing contingencies? Unfortunately, many buyers are unable to come up with the funds needed for an all-cash transaction.
With Sammamish Mortgage’s Cash Buyer Program, you can compete with other buyers to come out victorious, particularly in the midst of a bidding war. This gives you a chance to avoid all standard mortgage contingencies that can stand in the way of a winning bid.
The Cash Buyer Program provides a short-term first lien on your new home purchase. You own the home immediately, avoiding complications and high excise tax risks.
When you apply for a mortgage with Sammamish Mortgage, you’ll benefit from our in-house underwriting team. From application to closing, you’ll work directly with us.
There’s no need to rely on external lenders or third-party services to make decisions on your behalf. Instead, our in-house underwriting allows us to retain control and make quick decisions, which can speed up the process.
FAQs
Conventional loans typically require a down payment of at least 5% to 20% down. FHA loans allow down payments as little as 3.5%.
You can expect to see charges such as loan origination fees, appraisal fees, and closing costs.
Mortgage companies typically provide mortgage options such as 15- and 30-year fixed-rate mortgages, adjustable-rate mortgages (ARM), FHA loans, VA loans, and jumbo loans.
Compare interest rates, loan terms, fees, customer service, and unique features to find the best mortgage company. Also, consider whether the company is local and whether they offer in-house underwriting to ensure a faster and more controlled process.
Now it’s time to put your knowledge to the test. To figure out what the best mortgage company is for you, you have to compare.
You can start by reading our guide Why Choose Sammamish As Your Mortgage Company? You’ll have insights into one of the highest-rated mortgage companies in the Pacific Northwest, and regardless of whether we fit your personal needs, you will gain insight and knowledge into what information and background the best mortgage company can provide you.
Are you curious about mortgages? We have the answers. Sammamish Mortgage is a local, family-owned company based in Bellevue, best. We offer mortgage programs to borrowers across the entire state, as well as the broader Pacific Northwest region, including Colorado, California, Oregon, and Idaho since 1992. Please contact us if you have mortgage-related questions, or visit our website to get an instant rate quote and track rates using our rate tracker tool.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.