Article provided by: Tacoma Mortgage Brokers
Traversing the home loans market can be tricky when you are looking to buy your first home. Lenders and mortgage types are abundant, and the process of getting approved can be overwhelming. Some research goes a long way if you intend to get the best from mortgage lenders in Tacoma.
Types of Lenders
Direct lenders-These include organizations like banks and credit unions that sell mortgage products directly to clients. Working with direct lenders allows you to understand the mortgage process better. You can inquire about rates, terms, requirements, and other queries essential to you. However, there is a massive disparity in the offerings of different lenders. Comparison shopping can enable you to find the best deals.
Mortgage brokers- Mortgage brokers are professionals that act as liaisons between lenders and borrowers. They take a commission from either lender or borrower, depending on the party they are serving. Mortgage brokers in Tacoma, Washington ease acquiring the home loan by doing all the work, making them ideal for first-time buyers.
Correspondent lenders fund mortgages but offload them to more prominent lenders in the secondary market once the mortgage is finalized. Portfolio lenders are direct lenders who fund mortgages from client deposits. Therefore they cannot resell the loans.
The lenders design different mortgage products to meet the desires of a diverse clientele. As a prospective buyer, there are certain things to do to improve your chances of getting a competitive home loan.
Increase your rating- As with all other loan products, a higher credit score improves your chances of approval and gets you a better interest rate. Get your credit report and work on improving your score. Consider debt consolidation and commit to a monthly payment. It takes time for your ratings to improve, but these regular payments are essential steps towards better FICO scores.
Fix your debt-to-income ratio- Tacoma mortgage lenders need to be sure about your repayment ability. A debt-to-income ratio is a good measuring stick for how you handle your obligations. A DTI ratio below 43 percent is usually considered manageable. Therefore, start by paying off your debts before applying for a mortgage. In addition, strive to maintain a low ratio throughout the mortgage period.
Save. Having some cash reserves enables you to haggle with the lender for better rates. Saving should enable you to meet the minimum 20 percent downpayment requirement. In addition, it may enable you to fulfill your other financial obligations. Be frugal and plan accordingly to avoid falling into heavy financial constraints.
Do your research. There are various mortgage products, from the conventional to other government-backed ones, that require little down-payment or lower credit scores to qualify. Different online tools help you compare options different lenders offer you and see what works for the long term. Alternatively, hire a mortgage broker in Tacoma, WA, to help you with the mortgage application and pre-approval. A considerable benefit of working with mortgage brokers is they can expedite the mortgage approval process.
Please contact Tacoma Mortgage Brokers (TMB) at 253-449-8330 for additional information about our loan products.Tacoma Home Mortgage
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