Purchasing a home is a major life event. You don’t want to trust this investment to just anyone. It’s crucial that you take the time to compare your options so you can find the best mortgage brokers in Dallas, TX for your needs. Take these steps to thoroughly assess the lenders in your area.
Evaluate Your Finances
Before you start connecting with Dallas mortgage lenders, it’s best to take some time to thoroughly evaluate your financial situation. Purchasing a home is a major investment with numerous upfront costs including:
- Down payment.
- Closing costs.
- Home inspection fees.
- Home appraisal fees.
- Title search fees.
- Mortgage origination fees.
You’ll need to assess how much you have available in savings to cover these costs. You should also go over your budget to determine how much you can afford to pay for your monthly mortgage and other ongoing costs associated with your home purchase, such as utilities, maintenance, HOA fees, homeowners and mortgage insurance, and property taxes.
If you’re not sure what price point you’re looking at for these things, consult with a few lenders for some estimates. The best mortgage lenders in Dallas will be happy to help you understand the plethora of fees and expenses associated with the home-buying process.
Explore Your Mortgage Options
If the costs of buying a home seem too steep for your budget, don’t hesitate to inform the Dallas mortgage lenders that you’re thinking about working with. There are many mortgage options that can help ease some of this burden. For example, FHA loans can reduce your down payment to as little as 3.5% of the home cost, compared to the 20% required for most conventional loans.
The best mortgage lenders in Dallas, Texas, will take the time to walk you through your options with an eye to your unique financial situation. If a lender isn’t willing to discuss different options with you, move on to someone who will.
Compare Mortgage Rates
Contact at least three mortgage lenders in Dallas, Texas, for rates on a home loan. Make sure that these are fixed-rate mortgages in which the interest won’t change over time. Though the initial interest rate may look better on an adjustable-rate loan, there’s nothing to lock that percentage in. You will typically end up paying more in the future if you take a gamble on an adjustable-rate loan.
Assess Loan Estimates
After you’ve evaluated the mortgage rates, go on to assess full loan estimates from at least three mortgage lenders in Dallas. The detailed estimate will tell you:
- How long it will take to pay off the loan.
- Whether you can make overpayments to clear your debt more quickly.
- What your monthly payments will be.
- How much you will pay in closing costs and additional fees.
Evaluating different mortgage lenders is a time-consuming job. If you’d like to streamline this part of the home-buying process, you can employ a mortgage broker who will do the legwork for you and simply deliver the information you need to make solid comparisons. Schedule a meeting with one of our loan experts to learn more.
