Choosing Your Lender

As a real estate agent, I've seen many homebuyers make the mistake of not shopping around for a lender. While it may seem like a hassle, I cannot emphasize enough the importance of contacting at least three lenders before choosing one. Here are some reasons why:

1. You can compare rates and fees: Lenders offer different interest rates, fees, and loan terms. By contacting multiple lenders, you can compare these factors and choose the one that offers the best overall package. This could save you thousands of dollars over the life of your loan.

2. You can get pre-approved: Getting pre-approved for a mortgage is an important step in the homebuying process. It not only helps you determine how much house you can afford but also shows sellers that you're a serious buyer. By contacting multiple lenders, you can get multiple pre-approvals and choose the one that works best for you.

3. You can learn about different loan programs: Different lenders offer different loan programs, such as FHA, VA, or USDA loans. By talking to multiple lenders, you can learn about the different options available to you and choose the one that best fits your needs.

4. Local lenders offer personalized service: While bigger banks may have a wider reach, local lenders offer a level of personalized service that you may not find at a bigger bank. Local lenders are often more familiar with the local housing market and can offer more tailored advice based on your specific needs.

5. Local lenders may offer faster processing times: Because local lenders are often smaller, they may be able to process your loan more quickly than a bigger bank. This can be especially important in a competitive housing market where time is of the essence.

In summary, contacting multiple lenders is an important step in the homebuying process. By doing so, you can compare rates and fees, get pre-approved, learn about different loan programs, and choose a lender that offers personalized service and fast processing times. While bigger banks may seem like the obvious choice, don't overlook the benefits of working with a local lender.

Sharp Homes has contact with various lenders. Contact us today to get in touch with them!