Guide to Mortgage Shopping in 2020

Jamie Ayala

Jamie Ayala

Jamie Ayala has been working as a Loan Processor at Rock Mortgage for more than 4 years. As a knowledgeable account executive he has had many years of customer service experience in the loan, information technology, and political industries. Recognized for demonstrating a natural aptitude for working with cross-functional teams, as well as for meeting deadlines and validating loan documents, Jamie has a verifyable history of consistently exceeded sales and performance goals. His professional focal points include loan processing, client negotiations, team collaboration, and project management.

At a glance, it appears our world has grown crazier and crazier by the second and seemingly even the most normal of ventures such as shopping for a home mortgage appear to be impossible to cope with. Luckily for us, there are mortgage professionals and endless tools at our disposal of which can make purchasing or refinancing your dream home not only possible but effortless. Sound too good to be true? Below are a few easy tips to remember when shopping for a mortgage that will make even the newest of borrowers seem like well-seasoned investors. 2020 has opened the gates to one of the most profitable and prime home purchasing environments we have seen in years. In Texas alone, several of its largest cities have seen on average a 2% drop in home prices inviting investors and first-time homebuyers alike to take action and become part of this buyers’ market we currently find ourselves in. Now more than ever it is imperative that buyers are equipped with the proper knowledge that will allow them to shop for financing wisely and in a way that will continue to benefit them for years to come.

dollar signsIt is easy to become overwhelmed by the thought of taking on potentially one of the biggest debts of your life by purchasing a home however making such an investment can become less daunting if you are well prepared. Step one is to remember that shopping for a mortgage is just like shopping for any other product available out there. Mortgage products, fees, and the terms they are associated with are always negotiable and can vary from one lender to the next depending on the programs they have available to them. By obtaining quotes from multiple different lenders you allow yourself to cast a wider net of available options giving you the best opportunity to compare rates and overall costs side by side in real-time. As consumers, it is key to remember that you are never bound to your lender, no matter what stage of the process you are in. If you feel that you are not getting the help you desire, you are always allocated the gift of choice as there are endless options for financing available for buyers. Some of which include large banks, personalized credit unions, or even independent mortgage brokers that typically offer the most flexibility when it comes to negotiating due to their vast variety of brokered products available. Reading up on lender reviews and ratings is another great way to get a glimpse of what other clients before you have experienced by using their services. After completing your research on the multiple lending options available in your area always remember to request any and all offers quoted to be provided to you in writing. This will give you the opportunity to best compare apples to apples as well as provide other lenders the ability to match or beat any offer you have received.

investmentAnother vital tip to remember when shopping for a mortgage is to ensure you are aware of your credit standing prior to beginning your search for financing. Similar to other financing institutions such as in the automotive industry, mortgage lending is highly based on consumer credit scores. One of the first questions every loan originator will ask is “What does your credit look like?”. Fortunately for us, the credit bureaus have made it to where a consumer’s credit score will not be penalized for multiple inquires when shopping for a home mortgage. After the first mortgage credit inquires are opened, we as consumers are allotted a 30-day window of which we are able to shop for a mortgage without the fear of our scores taking the toll. It is a normal practice for lenders to request that the consumer pays for the initial credit pull as this ensures they had the borrower’s full consent to pull their credit.

Although not all lenders are created equal, they all must abide by the same rules and regulations set by the Consumer Financial Protection Bureau (CFPB), of which it’s primary function is to look out for the clients’ best interest as any good lending institution should do. When comparing lenders, remember to use your best judgement and always be on the lookout for those “too good to be true” scenarios. With your newfound knowledge you will be able to easily avoid a bad lending experience and be on your way to realizing your dreams of homeownership, now let’s get shopping!



Guide to mortgage shopping in 2020 | Rock Mortgage — Houston, Texas