The home buying process can be confusing for anyone, especially for first-time home buyers, because there can be many additional costs and steps. It may have you thinking of questions like:
- What kind of loans are available?
- How do I find a home lender?
- What are my home lender options?
I know the feeling, so I’m going to try to walk you through the process as you choose a home lender!
Your Lender, Your Choice
As you get started, your home consultant will help you find the perfect home. Our home centers work with many lenders, but the choice of lender is always up to you! If you’re still having trouble understanding how home loans work the Consumer Financial Protection Bureau has recourses that can help you learn about the home loan process and loan costs associated with getting a mortgage.1
Before looking for a home lender, you should become acquainted with the different types of loan options available, like conventional, FHA, VA and USDA home loans. As you explore loan choices, it’s important that you become familiar with the benefits of each so you’re not lost or confused when talking to lenders. Check out numerous loan option guides on the Consumer Financial Protection Bureau’s website to get more information in preparation for talking with and selecting a lender.
Contact Multiple Lenders
Once you have a better understanding of home loan options available and the kinds of loans you’d like to consider, you can begin exploring lender choices. Start by contacting multiple lenders to find out the types of loans they offer and get a sense for which loan officers you feel more comfortable talking to about your home financing options.2 It’s also a good idea to talk to family, friends, coworkers, etc. about their experiences with selecting a lender because they may have some valuable advice from lessons learned.
Make a List
After you’ve done your research on home lenders that offer loan products in your area, you can begin to narrow down your list of lenders. Select a few to continue to work with to see if it’s the right fit for you.
Talk With Lenders
Here are some of the things that might be discussed when speaking with potential home lenders:2
- Share basic facts about your situation and the loan types you’re considering
- Check to see if they have any other recommendations for you
- Find out the interest rate, APR, estimated fees and other monthly payments for each loan type you’re considering
Before talking to lenders, if you believe it will be beneficial for you, you can create a loan application packet with the documentation that a home lender may need from you.
Finding a home lender that best fits your situation is most important. Make sure to do your research and talk to loan officers so that you can choose the best home lender for your situation and be prepared to buy the home of your dreams.
1 "Learn about loan costs." Consumer Financial Protection Bureau. Accessed July 22, 2018. https://www.consumerfinance.gov/owning-a-home/process/explore/learn-about-loan-costs/.
2 "Contact multiple lenders." Consumer Financial Protection Bureau. Accessed July 22, 2018. https://www.consumerfinance.gov/owning-a-home/process/explore/contact-multiple-lenders/.