Even the savviest shopper can learn a thing or two (or seven!) about choosing a mortgage. Start here to make your selection process much easier!
1. Lender Strength
We start with financial strength because it’s the underpinning of all other aspects of your mortgage. Stearns Lending boasts financial stability, tremendous growth and customer satisfaction.
2. Mortgage Types
Look for a lender that offers a range of mortgage types and features including conventional, government-backed (Fannie Mae and Freddie Mac), government-insured (FHA* and VA), fixed rate, adjustable rate (ARM) and options for those with less-than-perfect credit.
3. Interest Rates
Mortgage rates vary based upon the type of loan, your credit history and down payment amount. It’s also important to be aware of various fees that can affect your overall mortgage cost.
4. Speaking of Fees…
They typically include appraisal fees and closing costs, and may also include points or Mortgage Insurance (MI). Find out which (if any) fees need to be paid upfront versus those that can be rolled into the mortgage.
5. Mortgage Insurance (MI)
MI is sometimes called Private Mortgage Insurance (PMI). Borrowers who have a down payment of less than 20% of the purchase price are required to buy this insurance that protects the lender in the event of a default.
Homebuyers can purchase points – at an amount equal to 1% of the loan – to reduce the interest rate or lock in a current rate. Ask your lender if points make sense for your goals and current situation.
7. Customer Service
KBHS Mortgage Loan Originators are committed to giving our customers a positive mortgage experience and providing guidance every step of the way.
We realize that the mortgage selection process isn’t as sexy as searching for your dream home, but it’s still super important. After all, the mortgage is what will provide your dream home with a solid financial foundation.
Mar 16, 2017
*KBHS Home Loans is an FHA Approved Lending Institution, and is not acting on behalf of or at the direction of HUD/FHA or the Federal government.