Boston high rise condos: How to select a Lender
Boston luxury condos for sale 2024
Boston high rise condos: How to select a Lender
Boston downtown/midtown real estate condos
Congratulations! You’ve decided to relocate to Boston Midtown. You’ve checked out the Boston downtown neighborhoods, figured out how much home you can afford, and now you’re ready to take out a mortgage.
A mortgage is like a bridge between where you are and where you want to be – you don’t have all the money to pay for your home now, so a mortgage fills in the gap of time that it will take you to attain those funds.Boston has bridges, and we have lots of options for Downtown real estate mortgage lenders, too. You could head to your old, trusted bank or credit union. Or, you could find a new financial institution willing to lend you the money. But what about all of those online mortgage lenders?
Obviously, the loan that’s right for you will be just as unique as the home you choose. There are, however, some basic guidelines to picking a downtown Boston real estate mortgage lender: let your Boston downtown real estate agent be your guide, shop around, then test the waters. Let’s look at those rules in more detail.
1. Ask your Downtown Boston real estate agent.
We’re not just the people who help you find your home – a real estate agent’s job is to help home buyers from start to finish. We work with lenders every day, and we’ve built strong relationships with some of them. Ask your Portland real estate agent what kind of lender they most prefer to work with and why, and get some names of loan officers who may be able to help you.
2. Shop around.
You may see offers for pre-approved mortgages. These can be helpful, but be aware that they’re not guarantees. Keep in mind that loan officers are sales people, and that taking on a mortgage is similar to buying a car or a new computer. Listen to what they have to say, but check out the claims they make. Forbes.com’s Mark Greene says, “Thoroughly investigate [loan]offerings for details. Advertising is shiny, so squint through the glare and find out about fees, lock-in periods, points and qualification requirements for what is being featured.
3. Test the waters.
In my experience as a downtown Boston real estate agent, customer service and communication skills differ widely between mortgage lenders. Although many Boston home buyers want to go with their established brick-and-mortar bank or credit union because they know and trust that institution, I’ve found that their customer service and mortgage rates can be subpar. I often recommend a local direct lending mortgage company which specializes in real estate loans.
To get an idea of what it will be like to work with a particular bank or lender, start by asking lots of questions by phone or email. If they don’t get back to you in a timely manner or give you insufficient information, imagine what it will be like dealing with them in an actual real estate transaction.
Picking the right mortgage lender is almost as important as picking the right home (or the right real estate agent!) I’ve had home closings fall through because lenders didn’t have all of their ducks in a row by the closing date, and the buyer lost the home they wanted – even though the buyer and seller were both ready to make the deal.
Of course, a good lender can help you save money and work hard to keep you informed through the home-buying process and beyond. If you’re ready to start your Boston mortgage search, give me a call today for my recommendations.
More Ideas and High Rise Condo Questions
1. What Will My Fees And Payments Be?
As a Boston high rise condo buyer, one of the first things you need to think about is your budget. Knowing how much home you can afford can help you narrow your home search and keep your expectations realistic. When you ask your mortgage lender how much home you can afford, they’ll review your income, assets and credit.
After analyzing your financials, your mortgage lender will provide you with the potential cost of your monthly payments and break down the expenses involved. You’ll learn about your interest rate, closing costs and property taxes, as well as additional fees that are factored into your payments. Furthermore, your mortgage lender will help you figure out how much of a down payment you’ll need.
There isn’t a single type of mortgage loan that’s superior to others or right for everyone. Because multiple programs may be appropriate for you, it’s crucial that you discuss your options with your mortgage lender. Make sure to ask your lender about the following types of loans:
Conventional Fixed-Rate Mortgages
A 30-year conventional fixed-rate loan is the most common type of mortgage loan. Because the term is so long, monthly payments are lower, and the fact that rates are fixed means that your interest rate will remain the same throughout the life of the loan. However, the longer the term of your mortgage the more interest you’ll pay on the loan. So, if you can afford higher monthly payments, it may be worth choosing a 15- or 20-year term.
Adjustable Rate Mortgages
Unlike fixed-rate mortgages, the interest rates of ARMs change over the life of the loan. If you choose to obtain an adjustable rate mortgage, your interest rate will increase or decrease as the market fluctuates after the fixed period expires.
This means that your mortgage payments can be different each month, which can make budgeting a bit challenging. The good news is that there are caps on this loan type, which limit the extent to which your interest rate and monthly payment can increase both periodically and over the life of the loan.
FHA Loans
Borrowers who have lower credit scores, incomes and savings are more likely to qualify for Federal Housing Administration (FHA) mortgages. FHA loans have lower credit score minimums and down payment requirements than most conventional loans. Yet, FHA loans do come with restrictions, and there are limits to how much money you can borrow. Additionally, you’ll be required to pay a mortgage insurance premium.
VA Loans
VA loans are backed by the U.S. Department of Veterans Affairs (VA), so they’re only available to veterans, active service members and eligible surviving spouses. VA loans tend to have lower interest rates and don’t require down payments. However, there are some restrictions and fees involved in these mortgages. Those eligible should expect to pay funding fees and have reserve funds available.
3. What Credit Qualifications Do You Require?
A credit score is a three-digit number that indicates to lenders how likely you are to be able to pay back the money you borrow. The higher your credit score, the easier it is to get a mortgage loan. However, you can still find ways to buy a home if you have bad credit – you just may have to pay more for your loan.
Each lender sets its own standards for what they consider an acceptable credit score. That’s why it’s vital that you ask your mortgage lender about credit qualifications early in the process. If you have a good credit score, you also may want to ask your lender if you qualify for any special offers or lower interest rates.
4. Do You Offer Mortgage Points?
Mortgage points (sometimes called “discount points”) are an optional fee that you can pay at closing to “buy” a lower interest rate and save on the overall cost of the mortgage loan. The cost of each mortgage point is equal to 1% of your total loan.
For example, if you take out a $150,000 loan, you may have the option to buy mortgage points for $1,500 each at closing. Mortgage points are most beneficial for home buyers who plan on living in their home for a long time because they can save tens of thousands of dollars over their loan term.
Be sure to ask your lender when it makes sense to buy mortgage points, how much each point will lower your interest rate and what the maximum number of points you can buy is.
5. What Is The Interest Rate And APR?
It’s essential that you ask your mortgage lender about your interest rate to find out how much interest you’ll be paying on your loan. Your interest rate is determined by multiple factors, including your credit score, the location of the home you purchase, the size of your down payment and your loan type, along with the loan’s term and amount.
However, you should also ask your mortgage lender about the annual percentage rate (APR), because it provides insight into the full cost of borrowing money. The APR includes both the interest rate and the fees that the lender charges to originate the loan.
If you’re planning to obtain an adjustable rate mortgage, it’s also helpful to ask your mortgage lender about the adjustment frequency. Knowing what your adjustment frequency is will tell you how often you can expect your interest rate (and thus the amount of your monthly payment) to change.
nt penalties are charged varies among lenders. They can be very expensive and can make early payoffs costly.
How To Find A Mortgage Lender: FAQs
The 14 questions we just went over can serve as your starting point when it comes to choosing a mortgage lender. The next few questions aren’t necessarily ones to ask your potential lender, but are questions you may still have about the process of finding a mortgage lender.
Do you need mortgage insurance?
Mortgage insurance is typically required for most loans with a down payment of less than 20%. The type of insurance varies by loan, and how much you pay can vary by lender. PMI, for example, can cost 0.5% – 1% annually.
How do I prepare before meeting with a mortgage lender?
Although it may be easy to find a lender, you should get one when you’re ready and prepared. Here are a few ways you can prepare as you shop around for a mortgage lender:
- Strengthen your credit
- Determine your budget
- Understand your mortgage options
- Compare rates
- Get preapproved
- Read the fine print
What is a mortgage broker vs. a mortgage lender?
Before you obtain a loan, you should understand how mortgage lenders and brokers differ, so you know whose assistance you require. A mortgage lender works for a bank or financial institution to determine the qualification of borrowers and provide them with funds. However, a mortgage broker works with borrowers to help them shop around and find the appropriate lender for their circumstances.
Instead of researching different types of loans and lenders independently, mortgage brokers do the work for you. After they find the right loan and lender for your financial situation, they help you gather the information you need to fill out your mortgage application. As a result of the services brokers provide, you pay them a commission, which is a percentage of your ultimate mortgage amount.
Before choosing to work with a mortgage broker, you should understand how they operate. Some mortgage brokers primarily work with specific financial institutions and promote lenders with whom they have long-standing relationships.
Given the differences in their roles, the questions you would ask a mortgage broker are different from those you’d ask a lender. Here are some important questions to ask a mortgage broker:
- Why should I work with you instead of going to a lender directly?
- How will you negotiate on my behalf to ensure I get better terms for my mortgage?
- How will you find me the right loan type and lender for my circumstances?
- How much do you charge for your services?
- Are there any specific lenders you work with frequently?
- Would you feel comfortable recommending a lender you don’t typically work with?
- How long will it take to find a lender?
The Bottom Line: Prepare Questions Before Choosing A Mortgage Lender
Asking your lender a handful of questions ahead of time can help make purchasing a home easier and less stressful for you. Make sure you ask your mortgage lender – or broker – plenty of questions about income requirements, the types of loans you qualify for and how much you have to save for a down payment and closing costs.
Do you have questions or need help finding the right loan for you? Go ahead and connect with one of our mortgage specialists today.
See What You Qualify For
2. Which Types Of Mortgage Terms Do You Offer?
There isn’t a single type of mortgage loan that’s superior to others or right for everyone. Because multiple programs may be appropriate for you, it’s crucial that you discuss your options with your mortgage lender. Make sure to ask your lender about the following types of loans:
Conventional Fixed-Rate Mortgages
A 30-year conventional fixed-rate loan is the most common type of mortgage loan. Because the term is so long, monthly payments are lower, and the fact that rates are fixed means that your interest rate will remain the same throughout the life of the loan. However, the longer the term of your mortgage the more interest you’ll pay on the loan. So, if you can afford higher monthly payments, it may be worth choosing a 15- or 20-year term.
Adjustable Rate Mortgages
Unlike fixed-rate mortgages, the interest rates of ARMs change over the life of the loan. If you choose to obtain an adjustable rate mortgage, your interest rate will increase or decrease as the market fluctuates after the fixed period expires.
This means that your mortgage payments can be different each month, which can make budgeting a bit challenging. The good news is that there are caps on this loan type, which limit the extent to which your interest rate and monthly payment can increase both periodically and over the life of the loan.
FHA Loans
Borrowers who have lower credit scores, incomes and savings are more likely to qualify for Federal Housing Administration (FHA) mortgages. FHA loans have lower credit score minimums and down payment requirements than most conventional loans. Yet, FHA loans do come with restrictions, and there are limits to how much money you can borrow. Additionally, you’ll be required to pay a mortgage insurance premium.
VA Loans
VA loans are backed by the U.S. Department of Veterans Affairs (VA), so they’re only available to veterans, active service members and eligible surviving spouses. VA loans tend to have lower interest rates and don’t require down payments. However, there are some restrictions and fees involved in these mortgages. Those eligible should expect to pay funding fees and have reserve funds available.
3. What Credit Qualifications Do You Require?
A credit score is a three-digit number that indicates to lenders how likely you are to be able to pay back the money you borrow. The higher your credit score, the easier it is to get a mortgage loan. However, you can still find ways to buy a home if you have bad credit – you just may have to pay more for your loan.
Each lender sets its own standards for what they consider an acceptable credit score. That’s why it’s vital that you ask your mortgage lender about credit qualifications early in the process. If you have a good credit score, you also may want to ask your lender if you qualify for any special offers or lower interest rates.
4. Do You Offer Mortgage Points?
Mortgage points (sometimes called “discount points”) are an optional fee that you can pay at closing to “buy” a lower interest rate and save on the overall cost of the mortgage loan. The cost of each mortgage point is equal to 1% of your total loan.
For example, if you take out a $150,000 loan, you may have the option to buy mortgage points for $1,500 each at closing. Mortgage points are most beneficial for home buyers who plan on living in their home for a long time because they can save tens of thousands of dollars over their loan term.
Be sure to ask your lender when it makes sense to buy mortgage points, how much each point will lower your interest rate and what the maximum number of points you can buy is.
5. What Is The Interest Rate And APR?
It’s essential that you ask your mortgage lender about your interest rate to find out how much interest you’ll be paying on your loan. Your interest rate is determined by multiple factors, including your credit score, the location of the home you purchase, the size of your down payment and your loan type, along with the loan’s term and amount.
However, you should also ask your mortgage lender about the annual percentage rate (APR), because it provides insight into the full cost of borrowing money. The APR includes both the interest rate and the fees that the lender charges to originate the loan.
If you’re planning to obtain an adjustable rate mortgage, it’s also helpful to ask your mortgage lender about the adjustment frequency. Knowing what your adjustment frequency is will tell you how often you can expect your interest rate (and thus the amount of your monthly payment) to change.
How To Find A Mortgage Lender: FAQs
The 14 questions we just went over can serve as your starting point when it comes to choosing a mortgage lender. The next few questions aren’t necessarily ones to ask your potential lender, but are questions you may still have about the process of finding a mortgage lender.
Do you need mortgage insurance?
Mortgage insurance is typically required for most loans with a down payment of less than 20%. The type of insurance varies by loan, and how much you pay can vary by lender. PMI, for example, can cost 0.5% – 1% annually.
How do I prepare before meeting with a mortgage lender?
Although it may be easy to find a lender, you should get one when you’re ready and prepared. Here are a few ways you can prepare as you shop around for a mortgage lender:
- Strengthen your credit
- Determine your budget
- Understand your mortgage options
- Compare rates
- Get preapproved
- Read the fine print
What is a mortgage broker vs. a mortgage lender?
Before you obtain a loan, you should understand how mortgage lenders and brokers differ, so you know whose assistance you require. A mortgage lender works for a bank or financial institution to determine the qualification of borrowers and provide them with funds. However, a mortgage broker works with borrowers to help them shop around and find the appropriate lender for their circumstances.
Instead of researching different types of loans and lenders independently, mortgage brokers do the work for you. After they find the right loan and lender for your financial situation, they help you gather the information you need to fill out your mortgage application. As a result of the services brokers provide, you pay them a commission, which is a percentage of your ultimate mortgage amount.
Before choosing to work with a mortgage broker, you should understand how they operate. Some mortgage brokers primarily work with specific financial institutions and promote lenders with whom they have long-standing relationships.
Given the differences in their roles, the questions you would ask a mortgage broker are different from those you’d ask a lender. Here are some important questions to ask a mortgage broker:
- Why should I work with you instead of going to a lender directly?
- How will you negotiate on my behalf to ensure I get better terms for my mortgage?
- How will you find me the right loan type and lender for my circumstances?
- How much do you charge for your services?
- Are there any specific lenders you work with frequently?
- Would you feel comfortable recommending a lender you don’t typically work with?
- How long will it take to find a lender?
The Bottom Line: Prepare Questions Before Choosing A Mortgage Lender
Asking your lender a handful of questions ahead of time can help make purchasing a home easier and less stressful for you. Make sure you ask your mortgage lender – or broker – plenty of questions about income requirements, the types of loans you qualify for and how much you have to save for a down payment and closing costs.
Do you have questions or need help finding the right loan for you? Go ahead and connect with one of our mortgage specialists today.
View Boston downtown condos/real estate for sale
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Areas Of Downtown Boston for the purpose of this blog post include:
- Back Bay luxury condos
- Beacon Hill luxury condos
- Charlestown luxury condos
- Charles River Park Condos
- Chinatown/Leather District
- Downtown condos for sale
- Fenway Kenmore condos
- North End condos for sale
- Seaport District condos
- South Boston condos
- South End condos
- Waterfront condos
- West End