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Seven Tips for Finding the Best Mortgage Lenders for First-Time Buyers

For the first time home buyers, shopping for the best mortgage lenders in Utah is not a very simple task. Even for the repeat buyers, the experience is somewhat overwhelming and the process of finding the most suitable mortgage lenders AZ feels complicated. In this article, we are going to share seven tips that will help homebuyers to find the best mortgage lenders in Scottsdale AZ. Keep reading to find out what you should be working on in order to attract the best mortgage lenders.

  • Talk to the real estate agents to find out the market rates for different products

The initial stage should be finding out the market value for the property that you are willing to purchase. Unfortunately, even repeat borrowers begin mortgage application even before finding out how much a property is going to cost. Before you begin searching for the best mortgage lenders in Utah, find out how much money you will need to purchase the property of your dreams. 

  • Compare the property value to your gross monthly income and consider credit score

For you to know the home that you can afford, you need to compare the market rates for different home types to your gross monthly income. This will help you in the budget preparation process. Lenders expect that housing will cost less than 30% of your income. In addition, it is advisable that the debt to income ratio should not exceed 36 percent. However, several mortgage lenders have relaxed these rules allowing more people to borrow for homeownership. 

Another important factor here is the individual’s credit score. Maintaining a good credit score will help you to qualify for a higher credit limit. 

  • Compare the loan offers from different mortgage lenders AZ

It is unfortunate that several mortgage borrowers in America fail to compare mortgage lenders rates when shopping for the best lender. According to a survey carried out by the Consumer Financial Protection Bureau, by not comparing the different rates charged by lenders, this could prove to be costly in the end. The first time Scottsdale AZ borrower should compare at least three mortgage lenders in Scottsdale AZ or other states. 

  • Be aware of commission-based and salary-based mortgage consultants

Still, on comparing what the mortgage lenders are offering, it is important that the borrower checks whether they are dealing with a commission-based consultant or salary-based mortgage consultant. A commission-based mortgage lender will be motivated by closing the mortgage fast in order to earn more commission. Therefore, the commission-based consultant is less worried about securing the best interest. You will most likely lead you to a huge financial commitment that you end up struggling to pay. Therefore, it is important that you spend time with the loan officer trying to understand the current financial commitments and verify the repayment terms. The objective is to be assured that you are getting the best rates. 

  • Find a mortgage lender who offers a wide variety of mortgage programs

To avoid being locked into a suboptimal mortgage, it is important that you go for the lender who offers a wide variety of mortgage programs. Finding a lender who provides you a wide variety of mortgage programs opens more room for better options that suit your aspirations. For instance, the best mortgage lenders Utah offer programs like FHA loans or even the VA mortgages. 

  • Find out the experience and reputation of the specific lenders

To be assured that you have found the best mortgage lenders AZ, a background check is an important undertaking. An experienced lender will execute the process with speed and efficiency. Therefore, it is advisable that borrowers choose the lenders who have been in the market for a longer time compared to borrowing from the first time entrants.  In some instants, the lenders might have more experience on specific loan type compared to the other one. You also find that experienced lenders shall help you get mortgage approval sooner compared to the performance of inexperienced lenders. 

  • Ask for recommendations from Real Estate agents

The real estate agents weigh in resourcefully when it comes to assisting the lenders to secure a good loan. It is important that the borrower finds out some recommendations from a trusted real estate agent. Listen to the suggestions that the real estate agents will give you when you are purchasing a home. just remember that it is okay to seek a second opinion after you have received suggestions from the real estate agents. 

Remember that the interest rate charged by different mortgage lenders in AZ varies depending on different factors. Ideally,  they will require you to answer various questions before advising you on the interest rates. While answering these questions, ensure openness in order to be assured that you are purchasing a mortgage product that will not plunge you into repayment problems. 

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