SHOPPING FOR LENDER
Very few home sales in Texas are made as cash sales. This means that at a point during your home buying process you will be applying for a home mortgage to help finance your future house. This process is called obtaining a home loan. Mortgages assist in home buying by allowing a consumer to borrow enough money to purchase the home, and pay back the principal borrowed plus interest. Because you are placing such a financial burden on yourself when applying for a mortgage, it is important to shop for the right lender.
HOW TO SHOP FOR A LENDER
Shopping for a lender in Texas is simple, but the task is daunting. Every bank, credit union, or mortgage company claims to have the “best this” or the “lowest that.” There is no all-encompassing answer as to how to find the right lender for your interests. The best way to compare mortgages is simply gather as much information about home loans as possible. It can be as easy as shopping at home because all of the national mortgage companies have websites that will give you a timely quote by inputting personal information. There are also websites that specialize in mortgage comparison. Also, it is worth the time to call mortgage brokers (lenders), local banks, and credit unions to inquire as to mortgage rates and payment schedules. One question to ask for sure when speaking with the lenders is “How long will it take to close?” When submitting a contract with an offer to the seller, one of the blanks that need to be filled out is the closing date. It is extremely important that you close before this date, so you must find a lender who is confident and trustworthy. There are a wide variety of changing interest rates and term lengths on the market. Find the right one for you. Personally, I have had amazing experiences with Steve Silver at Secure Mortgage Company and Amanda Stewart at Prime Lending. Their information is listed at the bottom of this page.
Word of mouth can also be a great tool for finding the best mortgage deals. While many individuals are hesitant to talk finances with anyone but their real estate agent or their financial broker, general information about which mortgage lender is being used will be fair game for discussion.
What is the process for obtaining a loan?
All lenders will ask for certain financial information in order to begin the application process. The lender needs to ensure that you are able to repay all of the money borrowed, plus interest. He/She does this by analyzing your source of income, your assets, your liabilities, etc.
The lender will tell you about all the different financing options available. 15 year mortgages are great if you have the continued income to repay it in that time. Interest rates fluctuate over time, and that will become apparent during these conversations as well. Remember, your interest rate is only good once it is locked.
After finding a home loan with the perfect interest rate and term limit, you will then need to submit an application for pre-qualified.
Only Apply To One Lender to be Pre-Qualified!
Most sellers will require a pre-qualified letter in order to consider a bid from a potential buyer. By obtaining the mortgage pre-qualified letter and submitting it with the bid, the seller is ensured that you have the financing to secure the home offer that was made.
Have the seller accept your bid in writing and have the contract executed.
After an option period, a time when the buyer makes the final purchase decision, the buyer can apply with 3-4 lenders for the best rates and decide to move forward. Once your perfect loan is created, Apply.
The lender sends your application to an underwriter to get started on the process.
Title searches, appraisals, and processing all need to occur and be sent to the underwriter for an accurate loan application.
The buyer may be asked for additional verification and explanations regarding income, housing, different funds, etc. The final conditions must be satisfied and sent back to the underwriter.
The home loan has been approved and you are ready to schedule a closing.
Schedule a time with all of the parties in the home buying process to finalize the documents and allow money to change hands.
You just bought a house!
DO’S AND DON’TS
Do:
- Call if you have questions
- Notify the lender of salary changes
- Continue living at your residence
- Continue making all current credit payments
- Make copies of all checks deposited during loan period
- Plan to provide updated financial information
- Let the lender know if you are using a gift
Don’t:
- Apply for any new credit
- Co-sign for anything
- Finance a new asset
- Make a big purchase (car, boat)
- Max out a credit card
- Consolidate your debt
- Pay charge offs or collection
Purchasing a home is a fun experience. Please contact Calvin Kim for any assistance regarding shopping for lenders in Texas.
MORTGAGE LENDERS
Address
Silver Mortgage Company - Steve Silver - 2500 West Loop South, Suite 200
Phone no
Houston, TX 77027
Cel: 713-384-3545
Tel: 713-362-8886
stevesilver@silvermortgage.com
www.silvermortgagefunding.com
Address
Peyton Mortgage - Roger Young -
roger@peytonmortgage.com
https://peytonmortgage.com
Address
Genesis Home Loan LLC - Emily Bae - 7001 Corporate Dr #300B
Phone no
Houston, TX 77036
Tel: 713-541-9500
emily@genesishomeloan.com
www.genesishomeloan.com
Disclosure Notice – The listed lenders are not affiliated with Calvin Kim, Realtor. These lenders all have great reviews, and they were highly recommended by other home buyers.
