Jane Hale asked:




Shopping around for a new home can be a long and tiresome process. Between overpriced housing markets and potential bidding wars, it is easy for a home buyer to become frustrated. However, the process of finding a good mortgage lender should not be stressful. Choosing a good lender is critical. For this reason, home buyers must avoid rushing the process or making haste decisions. If buying a home in Alabama, buyers should consider three factors when selecting a mortgage lender. Consider the following helpful tips for locating a reputable and trustworthy home loan lender.

Home Loan Lender’s Reputation

When applying for a home loan, buyers have many different lenders at their disposal. They may choose to apply for a loan with their personal bank, credit union, or use a mortgage company. Regardless of method, the lender chosen must have a good reputation. According to Alabama’s Fair Housing Act, mortgage lenders cannot refuse a loan application because of a person’s race, nationality, gender, or religion. On the other hand, some agents will discourage the seller from accepting bids or offers from buyers who have been pre-approved by an unknown or shady lender. Before choosing a mortgage lender, do your research. Contact the Alabama Better Business Bureau and inquire about complaints. If possible, choose a lender by referral

Online Home Mortgage Brokers

Another effective method for choosing a good lender is to submit an application with a mortgage broker. In a nutshell, brokers are middlemen. They do not lend money. Rather, they match home buyers with lenders and home loan programs. Because brokers have access to a wide assortment of loan programs, this is perfect for first time homebuyers, bad credit applicants, etc. Do you need down payment or closing costs assistance? Did you experience a bankruptcy or foreclose? If so, a mortgage broker can help.

Compare Mortgage Rates from Different Lenders

Currently, Alabama home mortgage rates are slightly higher than the national average. With this said, it is important to obtain mortgage rates from more than one lender, and make a thorough comparison. Many homebuyers mistakenly apply with a single lender, and accept their quote without shopping around. In some instances, this results in paying more for a loan. Fraudulent mortgage lenders earn a huge profit by charging unreasonably high rates. To avoid dishonest practices, get quotes from at least three lenders.

Tamara

Carrie Reeder asked:




A jumbo mortgage is different than a conforming loan. A jumbo loan amount exceeds that limit set by FNMA. That limit can change every year, but is around $300,000. With a jumbo mortgage, the interest rate is a little higher than other similar mortgage loans that are for smaller amounts. The reason the rate is higher is because the loan has a perceived higher risk by lenders.

A jumbo loan is considered a non-conforming loan. Conforming mortgage loan programs have perceived less risk by lenders and have lower interest rates. Most mortgage loans that are done by lenders are conforming loans. Jumbo loans are a small percentage of the mortgages that are done.

Although most mortgage loans that are done in the US, are smaller loan amounts than those limits set by Fannie Mae and Freddie Mac for jumbo loans, in California, home prices are so high, that there are many jumbo home loans done there.

If you live in California and/or are looking to get approved for a jumbo loan, the internet is a great place to apply to get a jumbo loan for a few reasons. First of which is that there are so many lenders online competing for your business, that lenders are forced to offer their lowest possible rates in order to get your business. For example, a local broker, who has a steady client base, may not be motivated to offer the lowest rate or the lowest closing costs, when the competition is only local. However, when you have the largest group of lenders online competing for your business, you can get a much better offer.

Where is the best place to apply for a jumbo loan? There are many mortgages companies online who can provide you quotes from multiple lenders. These companies will be able to provide you with quotes for usually up to 4 different lenders. This is a great way to make sure to get competitive offers. However, make sure you still ask each competing mortgage lender about the points they will charge, their closing costs and any other fees, to make sure you are getting the best loan you can.

Getting the lowest interest rate does not always make the loan you want, the best deal. The lender can charge more in other places that you might not catch until closing.

To view our list of recommended lenders online for jumbo loans, visit this page: Recommended
Jumbo Mortgage Loan Lenders Online.

Zachary

miguel3wishes asked:


if i got pre approve for a mortgage loan from a lender.those this means that i have to take out my loan with this lender when the time arrives to get a loan for my home ? or can i still apply for other loans and options. also my home is been build now but the closing is not till november any suggestion for loans and different programs available for a first time buyer?

Craig