Types of Mortgage Lenders
PRO TIPWhen you’re shopping for a lender, look at reviews for the individual loan originator and not just the broader company. A great company won’t mean much if the individual you work with on the loan lets you down.
4 Steps to Finding the Best Mortgage Lender
1. Look at the lender’s rates and Fees
2. Decide what type of mortgage you want
To qualify for a FHA loan you must meet the minimum credit score requirements, which are set by the government at 500 with 10% down, or 580 with 3.5% down. Although individual lenders often have higher standards than the government minimums, FHA loans still typically have lower credit score requirements than conventional loans.
3. Check if you’re eligible for any assistance programs
What programs are available varies depending on where you’re purchasing a home and even what lender you choose. Many lenders participate in down payment programs, but no one lender offers all of them, says Sean Moss, senior vice president at Down Payment Resource, an online aggregator of homebuyer assistance programs. So you’ll have a better idea of what opportunities are available by talking to a couple of different lenders.