What to do before choosing a credit institution

It is advisable to investigate before deciding

Over the life of the loan, seemingly subtle differences can arise with the potential to add tens of thousands of dollars to your debt. That money belongs to your future and to all the vacations, renovations and remodeling you dream of and want to do.

Therefore, before choosing the credit institution...

• Thoroughly research any retail bank, credit union, mortgage bank, mortgage broker, or online option you are considering. Make sure you are clear about what they can offer you. About one in five (21%) homebuyers say they regret the mortgage company they chose, according to a J.D. Power. By reading this guide, you are making sure that doesn't happen to you.
• Study different credit institutions. Your goal is to come up with a list of only three. (You'll see why only three in a minute.) If you're thinking about selecting a lender online, be sure to read “Your stress-free guide to finding the right loan” on page 24.
• Don't hesitate to seek advice. Consult your family, friends, and co-workers, especially those who are fans of money-related issues.
• Ask your real estate agent for a second opinion. He has experience with prestigious credit institutions, especially in your city or town.

Okay, let's say you have that list of three potential lenders ready. what's next
passed? Find out if they would grant you a loan.

Try to get a credit institution to pre-approve a loan for you

To get pre-approved, you must authorize a credit institution to check your qualification.
• Borrowers with credit scores of 760 or higher can generally qualify for the lowest interest rates.
• Borrowers with credit scores below 650 may need to apply for a nonconventional mortgage, such as a Federal Housing Administration (FHA) loan, a government-backed loan that requires a minimum credit score of 580 but allows borrowers to Borrowers make a down payment of as little as 3.5%.
• Borrowers with credit scores below 580 may still qualify for FHA loans, but will need to make a down payment of at least 10%. The lower the rating, the stricter the requirements become.

It makes sense to get pre-approved by at least three credit institutions

By comparing loan estimates, you can better assess what options you have and decide which lender is best for you and your future. (If you need help breaking down the details, you can consult the Consumer Financial Protection Bureau (https://www.consumerfinance.gov), which offers a sample loan estimate with helpful hints and definitions.) Getting pre-approved early in the process also gives you an edge over other buyers. Let's see why this is so.

• The pre-approved amount will allow you to define your price range, thus saving you time and frustration.
• Gives a signal to your agent and sellers that you are serious about buying a home.
• It will help you move quickly to make an offer when you see a home you like.

Estee Soto

Estee Soto is a real estate agent with eXp Realty, a certified mentor and eXp Latino ambassador, and the CEO and founder of TagCrush LLC, an all-in-one digital marketing platform for real estate agents. She leads the TAGHOMES team, specializing in luxury properties, new developments, and international buyers across Florida.

More information about Estee Soto HERE