North Texas Real Estate Blog

Buying a home in Tarrant County should not be a rush project.  Take the time to find out about several potential mortgage lenders for your new North Texas home and to understand the costs for home loans in the vicinity of Southlake, Texas real estate—including Keller TX, Grapevine TX, and Colleyville TX—as well as for neighboring Denton County real estate.  A good mortgage lender can make all the difference, not only in the upcoming transaction but in your financial picture for years to come.  It is very important to do your homework and to know what questions to ask.

Your North Texas real estate agent can give you referrals, but it is important that you are personally comfortable with the company and the mortgage-lending professional that will be working with you.  Buying is a big commitment for most folks and stirs up plenty of emotion.  You want to work with someone who will facilitate a smooth transaction.  In addition, it is important to know exactly what they expect of you and what paperwork and documentation will be required.

Looking at the companies out there, you’ll find a wide range.  Some are very large, efficient, and well-advertised, but you’ll still need to look beyond the cover.  Some people prefer the personalized relationship and customer service that is characteristic of a smaller company.

After finding out how big the company is, ask how long they’ve been in business.  A company with longevity will have more references for you to check.  The Better Business Bureau may also have information such as consumer complaints.  If a company endures time, chances are they will have a pretty solid reputation.

Ask if the company is a mortgage banker or broker.  The difference is that a mortgage banker loans its own money to a homebuyer for a home loan.  Many of them will retain the loan and service it for the duration of your contract.   However, they are free to sell the loan to a secondary market.  A mortgage banker is considered a direct lender and can give the homebuyer loan approval.

A mortgage broker, in contrast, will shop around for mortgage sources such as the mortgage banker mentioned above.  Many of their source lenders do not deal directly with the public and the broker is the only go between.  Thus, mortgage brokers are called “wholesale lenders.”  Although, mortgage brokers charge fees for their services, they usually have access to many more options than a mortgage banker.

After you narrow down the field of lenders, there are questions to ask the mortgage professionals.  What are the upfront costs?  What is the interest rate?  What points will I have to pay?  What fees are involved?  Is a down payment necessary?  What will be the closing costs?  They should each be able to give you a good-faith estimate for your mortgage expenses.

When you can trust your instincts and knowledge and make a decision, it is time to apply.  Be prepared to open up your private financial affairs to the people who will be handing you hundreds of thousands of dollars.  To process a loan, most companies require a couple of years of federal tax returns, several months of pay stubs, recent bank statements, W-2 forms, and sometimes much more.

Enjoy the journey and you’ll soon be right at home.  Call Dave Warden at (817) 706-3291 or e-mail him at dave@davewarden.net for a tour of great deals in the area.