On the surface, it may seem like paying cash for your new home is the better option. But, with low rate mortgages available and your other financial obligations, is it wise to fork up all your cash.
Out of all purchases and investments you make in your lifetime, a home purchase in Boise is probably the biggest and most expensive of them all. It’s not the type of purchase you make on a whim, but rather one that requires careful consideration.
And considering such an important purchase, you’ll want to make sure that the mortgage broker you choose can give you exactly what you need to make that purchase happen.
After all, you’ll probably need financial assistance to pay for a home, which is exactly why mortgages exist in the first place. Without home loans, most buyers wouldn’t be able to buy a home.
Of course, you can always apply for a home loan with your local bank or credit union, but you’ll only be offered what they have to give. This limits you to what your bank can offer you. Plus, the bank will ultimately be looking out for themselves to profit, and not you.
Instead, a Boise mortgage broker’s main priority is you. Plus, a mortgage broker will give you access to a lot more mortgage programs and product options to choose from.
Top Reasons to Work With a Mortgage Broker in Boise
There are a number of reasons why you may want to choose working with a Boise mortgage broker over the bank, including the following.
Mortgage Brokers Work With a Wide Array of Lenders
Mortgage brokers tend to have a large network of lenders that they work with, so there is more choice on your end when it comes to who you choose to secure a mortgage with. Your broker can get in touch with the right lenders who they think would be a good fit for you, compared to a bank who will only be able to offer you the limited products they have.
Mortgage Brokers Have Your Best Interests in Mind
While the bank may be trying to help you secure a mortgage, their number one priority is their own bottom line. On the other hand, a mortgage broker in Boise works for you, and not any particular lender. As such, you’ll be getting only the best service that is customized according to your needs.
Mortgage Brokers Will Negotiate on Your Behalf
Unless you have extensive experience negotiating with lenders, you’d be better off letting a seasoned mortgage broker in Boise do all the wheeling and dealing for you. This way, you can increase your odds of getting better terms and a lower interest rate, saving you money over the long run.
Mortgage Brokers Will Comparison Shop For You
It takes a lot of time and effort to shop around for a mortgage with various lenders. Instead of doing all of that work yourself, you can enlist the help of a Boise mortgage lender to do it for you.
Mortgage Brokers Are Experienced in the Mortgage Industry
The experience that mortgage brokers have is well worth the effort to find one to work with. The mortgage process can be a complex one, so having someone who can make sense of it all for you is priceless.
How to Find the Best Boise Mortgage Broker
How do you go about finding the right Boise mortgage broker to work with? Here are a few tips to consider.
Ask People You Know
Sometimes the easiest and quickest way to get a recommendation for a mortgage broker in Boise is to ask people who you know. If anyone in your social circle has recently used a mortgage broker to buy a home in Boise, ask them what their experience was, and ask if they would recommend that particular broker for you.
Ideally, the person making the recommendation will have made a transaction similar to yours and may be in a similar financial position. That way, you’ll get a better idea of whether the mortgage broker in question would be a good fit for you.
If no one you know has any suggestions, consider looking online at reviews. Just make sure to look at reputable review sites that do not post fake reviews, and read as many reviews as you can to get an overall sense of what various mortgage brokers are like to work with.
Improve Your Credit Score
No matter which mortgage lender you choose, you’d be in a better position if your credit score is healthy. Your credit score plays a key role in whether or not a lender will approve your mortgage application. If it’s too low, you run the risk of having your application denied, since lenders don’t want to work with risky borrowers.
Pull your credit report, and if it’s too low, look for any mistakes that may be unfairly pulling it down. If that’s the case, report these to the credit bureau and have them investigated and rectified.
Otherwise, take some time to give your credit score a boost by paying all bills on time, keeping your credit card spending to no more than 30% of your credit limit, paying more than your minimum credit card payment, and resist the urge to apply for any new credit accounts or loans.
Ask Lots of Questions
There are many questions that you can and should ask your mortgage broker before you make a choice on who to work with. When speaking with a mortgage broker, consider asking the following questions:
- How big does my down payment need to be?
- Are there any down payment assistance programs available?
- What kind of mortgage programs do you offer?
- Which mortgage product would be ideal for me?
- What interest rate can I get?
- Can I pay down my interest rate with points?
- What are the other fees involved?
- What are the closing costs?
- Should I choose a fixed rate or adjustable rate?
- How long will it take for the mortgage to close?
The answers you are given will help you get a better idea of the professionalism of the broker and what type of products and services you’ll be able to obtain.
Get Details of the Cost of Your Mortgage From Your Loan Estimate
You’ll be given a copy of a Loan Estimate within three days of applying for a home loan. This document will list all the fees associated with your mortgage so you’ll know exactly what your financial obligations are before the deal closes. That means you’ll have a few days to go over these fees and then decide if you’re OK to go ahead with the transaction.
There are many different types of closing costs involved in a mortgages that will be listed in your Loan Estimate, such as the following:
- Interest rate
- Interest rate lock-in fees
- Discount point fees
- Lender fees
- Underwriting fees
- Appraisal fees
- Credit report fees
- Escrow fees
- Title insurance fees
By working with a Boise mortgage broker, you will have the benefit of having a professional help you understand everything that’s outlined in the Loan Estimate instead of trying to make sense of it yourself. This will help you make a more educated decision about your mortgage.
Ready to Apply For a Mortgage in Boise?
Do you have questions about mortgages, or are you ready to apply for one? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest. Contact us today with any questions you have about home loans.