Are you planning to become a new homeowner this year?
When it comes to purchasing a home in Las Vegas, one of the most crucial steps is securing a mortgage loan. However, before diving into the process, it’s essential to explore your options thoroughly and get as much information from industry professionals as possible. Here are some fundamental tips concerning why contacting multiple lenders is a smart move:
Find the Best Rates: Each lender offers different interest rates and loan terms. By reaching out to several lenders, you can compare their offerings and choose the one that best fits your financial situation. This ensures you get the most competitive rates possible, potentially saving you thousands of dollars over the life of your loan.
Access to Different Loan Programs: Lenders offer various loan programs tailored to different buyers’ needs. By contacting multiple lenders, you can explore a wider range of options, including conventional loans, FHA loans, VA loans, and more. This allows you to find a program that aligns with your specific requirements and financial goals.
Evaluate Customer Service: The mortgage process can be complex, and having a supportive lender can make a significant difference. Contacting multiple lenders gives you the opportunity to assess their customer service levels. Pay attention to how responsive and helpful they are during the initial inquiry process. Choosing a lender who provides excellent customer service ensures a smoother and more pleasant home buying experience.
Negotiate Better Terms: When you have multiple loan offers on the table, you gain leverage to negotiate better terms with your preferred lender. Whether it’s negotiating lower closing costs or securing a more favorable interest rate, having multiple options empowers you to advocate for the best possible deal.
Avoid Potential Pitfalls: Not all lenders are created equal, and some may have stricter eligibility requirements or less favorable terms. By contacting multiple lenders, you reduce the risk of encountering issues later in the process. Additionally, if one lender denies your application, you still have other options to explore.
My experience over the last 24 plus years of selling real estate and working with mortgage lenders, has given me insight that I share with my clients to make the best informed decisions when choosing a Mortgage lender. I firmly believe that shopping with at least 3 different lenders for a mortgage loan is typically the best strategy to obtain the best rate and term. I find that working with a Local area mortgage brokers versus large box banks, that my clients are typically more satisfied with what they’ve been able to negotiate, plus they are happier with the customer service and reliability from a mortgage broker versus again a big box bank or an online mortgage company.
For many Americans, the largest investment in their lifetime will be their home, and one of the most important decisions as part of this large purchase will be what kind of financing they will choose. A 30-year mortgage is the most common in the Las Vegas market. If you take all 30 years to pay it off, it will typically cost you triple what you paid for the property initially, because of the compounded interest you will pay. The Interest rate, loan costs and terms are all vital factors to be considered when purchasing a home.
A good example of this is comparing a couple of local mortgage brokers that I have done business with in the past.
Vision Home Loans and Guild Mortgage.
Vision is a smaller direct lender and Guild is a larger mortgage brokerage with offices across several States.
They both offer competitive interest rates and costs and personalized service and years of mortgage expertise that will guide a client of mine to pick the best Mortgage loan for their needs.
But the rates and the terms can sometimes be quite different depending on the day and time and the type of loan. So I suggest speaking to 2 or 3 different Lenders, and make sure to speak to a local lender, better than a national lender.
Each mortgage broker will have different Loan overlay criteria that they follow with their direct bank investor that can affect how the pricing is offered to them for their borrower. Typically this is where the pricing differences come from. There are many Government funded first time borrower loan programs that can offer pathways to home ownership with far less upfront investment and are very popular for entry level housing. These are considered down payment assistance loan programs and can also include closing costs. Some lenders may have some special loan programs that work well for people that show less income on their taxes vs what they really earn. These are Niche loan products, typically called a bank statement only loan for people that have a hard time to qualify under the more standard conforming loan products,
This Nice loan product can be a great pathway for a borrower that maybe has a high income on tips vs regular payroll. It is important that you speak to a well qualified and experienced loan officer that knows about all the loan programs available and that their broker has a variety of these type products to offer. This way you have several options to consider, and find the best suited for your credit and financial situation.
ll in all, it’s super important to shop out your mortgage loan. I have decent knowledge of how mortgage lending works, having had a license in lending many years ago when I first got involved in real estate in 1998. I can consult with you about which Lender may be best suited for your situation and if a Government subsidized Loan program may work for you, or if you may qualify for a Non-conforming loan product.
My advice is to buy what you can afford to get your foot in the door, in our current real estate market that shows appreciation is going up, and all indicators say for the Las Vegas market it will continue to rise steadily for years to come. You can always build equity in your new home purchase now and use that equity to launch you into your next level up property in 3-5 years. It is likely that interest rates will decline in the next year, and you will be able to refinance into a lower rate, which is much easier than fighting a herd of new buyers swarming into the real estate market, once the rates drop. You will have acquired your home at a lower price, plus possible closing costs paid by the seller, now, vs paying more, dealing with possible multi offers and possibly losing out on your favorite pick at the home you prefer.
I am happy to consult and discuss any questions you may have on the subject. Just reach out to me directly .
In conclusion, contacting multiple lenders when purchasing a home is a prudent strategy that can save you money, provide access to a broader range of loan programs, and ensure a smoother transaction overall. A great idea is to hire a Realtor that has Mortgage lending experience and great connections in your local market area. I am happy to consult with you if you’re considering a real estate purchase in your future. Take the time to shop around and compare offers before making your final decision—it’s an investment that can pay off significantly in the long run.
Dulcie Crawford is a native Nevadan, born and raised in Las Vegas, and has witnessed the spectacular growth of Paradise Hills and Mission Hills firsthand. She has a strong knowledge of the Paradise Hills and Mission Hills Communities and what’s going on in Real Estate today. Dulcie stays current with market conditions and keeps continuously updated on market trends, legal reforms and financing so she can assist you in making informed decisions. A senior Realtor with Signature Real Estate Group, she has sold over 1,200 homes since 1998. You are assured a professional experience when buying or selling Real Estate with The Dulcie Crawford Group.
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