Whether you’re looking to purchase your first home, upsize or downsize, finding the right financing is a decision that will impact your financial health for a lifetime.
A common misconception among homebuyers is that an interest rate is only factor to consider when shopping for a mortgage. It's easy to become rate obsessed and overlook the bigger picture. While obtaining a competitive rate is certainly important, it’s not the only factor to evaluate. Other key considerations include:
Loan options. A low rate may sound great, but it’s not so good if your lender lacks the mortgage product best suited to your situation. Since your home will most likely become the largest asset you own, you want to secure the right home loan for your goals. For example, if you are seeking to purchase a fixer-upper, you’ll want to work with a lender who can provide you several different renovation loan options.
Credit score, down payment and fees. The three most important factors tied to your interest rate are credit score, down payment and mortgage fees. If you notice certain rates being advertised online, chances are they may be vastly different from the one you’ll actually end up with. That’s because your rate will be calculated based on the level of risk you provide to the lender. Your best bet will be to work with a trusted loan consultant who can crunch the numbers based on your specific financial profile. If your rate is still not great, you may need to take a step back to either improve your credit score or save up a larger down payment.
Overall experience. In a competitive market where sellers pick and choose best offers, cash is king. But if you don’t have a pile of money, your next best bet is an efficient and certain mortgage transaction and the expertise of a seasoned loan consultant.
Lifelong relationship. Building a long-term relationship with your lender can benefit you for years to come. Just like you would expect your doctor to give advice based on your health history, you’d want a lender to consider your current situation and long-term outcome when making a mortgage recommendation. loanDepot’s licensed loan consultants are ready to roll up their sleeves and find the loan that best fits your personal circumstances – all while providing superior levels of customer service.
Future refinance benefits. Did you know that most homeowners will refinance at least 4 times over the course of a 30-year mortgage? While you may not think about a refinance the moment you buy your home, it’s worth looking into future refinance perks. With loanDepot’s Lifetime Guarantee, once you fund a loan with us, we’ll waive our lender fees and reimburse your appraisal fee when you refinance your home with us in the future. That’s a great benefit to consider when choosing a mortgage lender, especially if others can’t match such a proposition.