Tips for Mortgage Shopping in a Hurry

Securing a mortgage is one of the biggest financial undertakings that many people will undertake, and shopping around for the best deal is a critical part of the process. Unfortunately, many times, people find themselves in a hurry because they need to make a decision quickly and don’t have time to compare all the available options. If you find yourself in a mortgage-shopping time crunch, use these tips to make the best decision for your financial future.

Know your credit score

Knowing your credit score is the single most important factor when applying for a mortgage. Most lenders will not approve a mortgage unless borrowers have a credit score of at least 650. Additionally, lenders look at two other scores when evaluating loan applications: a soft credit score and a hard credit score. A soft credit score is used to determine whether or not you qualify for the mortgage, while a hard credit score will give the lender a more detailed picture of your creditworthiness.

Do your research

Loans are not a one-size-fits-all product. Different lenders offer different rates and terms; doing your homework can save you time and money. Start by checking out mortgage calculators online that can help you determine the best fit for your financial situation. Find out what kind of loan products different lenders are offering and compare the differences between them. Don’t forget to consider variables like fees and points when comparing loans.

Find the right lender

If you’re shopping for a mortgage in a hurry, you don’t have time to wait around for lenders to respond to requests for information. Instead, focus on lenders that are known for their customer service and quick turnaround times. Ask your real estate agent or financial advisor for recommendations and read online reviews to get a sense of how reliable a particular lender is. Research customer complaints about the lender to ensure you’re going for the right one.

Shop for rates and fees

The biggest factor when it comes to mortgage shopping is the rate and fees. Take your time to compare offers from different lenders to make sure that you’re getting the best possible rate. Look for special financing deals like “no-fee” or “low-rate” options that may offer a lower rate or waive some of the fees associated with the loan.

Choose the right type of loan

When you’re shopping for a mortgage in a hurry, you need to decide quickly which loan type is best for your financial situation. Consider your budget, whether you plan to stay in the home for the entire term of the loan and the loan product that is right for your situation. Common loan types include adjustable-rate mortgages, fixed-rate mortgages, FHA loans, and VA loans.

Disclose everything

When you’re applying for a mortgage, you need to provide the lender with a complete financial picture including income, asset, and debt information. Failure to disclose all of your financial details could lead to problems down the line. Make sure to include any assets or liabilities, such as investments and student loans, that you may have forgotten about. This disclosure will help you get the most accurate rate quote, and will also help you avoid being approved for a loan that you can’t afford.

Document everything

When you’re in a hurry to get a mortgage, it’s easy to forget to document all of your discussions with lenders. Make sure to keep track of all emails, phone calls, and in-person meetings that you have with lenders in case information changes down the line. This will also help you compare terms on different loan offers if you need to.

Be prepared for closing

When you’re shopping for a mortgage in a hurry, you need to be prepared for the closing process. You’ll need to familiarize yourself with the closing agent’s paperwork and make sure that you understand the terms of your loan before signing. Additionally, you’ll need to bring all required documents and closing costs to the closing. Be prepared to sign a large stack of papers, so make sure that you read everything before signing.

Request a Good Faith Estimate

When you’re in a hurry to close a loan, it is important to request a Good Faith Estimate (GFE). This document provides a summary of the fees associated with your loan. Make sure to compare the GFE to the closing documents to make sure there are no discrepancies.

Stick to your budget

When you’re in a hurry, it’s important to remember that you need to stick to your budget. A loan that has a low rate but requires you to stretch your budget is still not a good move. Additionally, if you’re in a hurry, don’t be tempted to take on a higher loan amount that you can’t afford in order to qualify for a lower rate.

Take your time

Finally, even if you’re in a hurry, it’s important to remember that rushing into a mortgage decision could end up costing you a lot of money. Take your time to compare different loan options and make sure that you understand the terms and conditions of each loan. Don’t rush into a decision based on rate alone; make sure that you are comfortable with the lender, the loan product, the fees, and the documentation process.

Shopping for a mortgage in a hurry can be a stressful process, but it’s important to remember that you have options. By doing your research, shopping around for the best rate, and understanding all the terms and fees associated with the loan, you can make sure that you get the best deal possible.