Mortgage lenders Seattle

When you buy a home or refinance your mortgage, it’s a big financial decision, so it makes sense to find the best mortgage lender you can. It is important to compare mortgage rates and other loan options such as loan process, lender fees, application process online, loan types, and customer service offerings. Our goal is giving you tips in finding the best mortgage lenders.

5 Tips for Finding the Best Mortgage Lenders

The search for the right mortgage program will be one of the most important plans if you’re thinking of buying a home in Seattle in the near future.

Here are five tips to help you select the best mortgage lender for your needs.

Which Kind of Mortgage Lender You Want to Work With

When you start looking around for the Seattle mortgage lender, you must consider what kind of mortgage options you want to work with. There are very large mortgage lenders that work with thousands and thousands of home buyers every year. There are also smaller mortgage lenders that work with a much more select group of people on an annual basis.

Fairway Independent Mortgage Corporation is accredited by and has an A+ rating from the Better Business Bureau, and the lender ranked highly for customer satisfaction in J.D. Power’s latest U.S. Primary Mortgage Origination Satisfaction Study.

Talk to a Real Estate Agent About Helping You Find a Lender

First time homebuyers struggle to find the best mortgage lenders for one simple reason. They have no idea where to begin their search. Ideally, you want your real estate agent to recommend the best mortgage lender for you, not just the one they are familiar with. You are also allowed to ask your real estate agent any questions you may have about the mortgage process.

The Dan Chapman Team of Fairway Independent Mortgage Corporation is well known for the value he provides to his clients as a trusted adviser and treating each person with the respect they deserve. It is Dan’s goal to provide you with a home financing experience based on integrity, trust, and communication. He is dedicated to giving you the ideal experience by listening to your needs. Making sure you have the right mortgage product that matches your financial goals.

Recommendations from family, friends and relatives

Remember: You’re not just going to be working with mortgage lenders when you apply for a mortgage. You’re also likely going to be working with them for the next 15 to 30 years as you pay off your mortgage. It is important to find the right mortgage lender that is recommended by your friends, family members, and those you trust most.

Search for the Best Rates Offered by Mortgage Lenders

At the end of the day, you probably want to do whatever it takes to get the best possible interest rate on your mortgage. Fairway Independent Mortgage Corporation offers a range of programs including fixed rate, adjustable rate mortgages, Balloon mortgages, and more. Interest rates may vary depending on the amount of low down payment mortgages. In some situations, a lender may require low down payment options.

Think About Working With a Mortgage Broker to Track Down a Lender

A mortgage broker is someone who can work on your behalf to find a mortgage lender that will offer you the most money, the best interest rate and the most favorable terms. They will take all of your financial information, speak directly with different lenders in the area, and come back to you with a short list of available lenders.

9 Steps of the Mortgage Loan Process: From Pre-Approval to Closing

Estimate your budget

It’s important that you should estimate how much house you can afford. This lets you set realistic expectations for your dream home hunting and choosing a loan program. You’ll also need to figure out how much you have in savings. This will inform how much you have for your down payment and closing costs.

Get pre–approved for a loan

A mortgage pre approval process is when a lender determines you’re qualified for a home loan.

When you get your pre approval letter, you’ll find out how much money you’ll be able to borrow as well as the interest rates and entire loan process.

Shop for your home and make an offer

After visiting properties with your mortgage brokers and picking out the home you want, it’s time to make an offer.

Your real estate agent will know the ins and outs of how to structure the offer. It may include contingencies (or conditions) that must be satisfied before the deal is complete.

Order a home inspection

After your offer is accepted, the next step in the whole process of home purchase is typically a home inspection.

Some of the areas a home inspector checks include:

• Home’s structure
• Foundation
• Electrical
• Plumbing
• Roofing

Go rate shopping and choose a lender

Now that you’ve found a home and your offer has been accepted, it’s time to make a final decision about your lender. When shopping for a mortgage, remember your rate doesn’t depend on your application alone. It also depends on the type of loan you get.

Complete a full mortgage application

Most of this application process was completed during the pre approval stage. But a few additional documents will now be needed to get a loan file through underwriting. You will receive a loan estimate within three business days which will list the exact rates, fees, and terms of the home loan you’re being offered.

In Fairway Independent Mortgage Corporation, They made the entire process of purchasing a home so easy! Fairway Independent Mortgage Corporation will help you every step of the way. From applying to closing, we’ll help you reach your goal.

Have the home appraised

An appraiser will be hired by your lender to give you an independent appraisal of the home’s value. The majority of many lenders work with a company that isn’t affiliated with them directly. You’ll know you’re getting a good deal on the house if you get an appraisal.

Mortgage processing and underwriting

Once your full loan application has been submitted, the mortgage processing stage begins. For you, the buyer, this is mostly a waiting period.

During the underwriting process, they may come back with questions. You should respond as quickly as possible to ensure a smooth underwriting process.

3 Cs mortgage underwriting

• Capacity – Do you have the cash to pay for your loan?
• Credit – Does your credit history show that you pay debts on time?
• Collateral – Is the value of the property you’re buying sufficient collateral for the loan? (I.e. Did the appraisal show that the purchase price and home value are aligned?)

Closing day

The lender will send the closing documents, along with instructions on how to prepare them, to the closing attorney or title company. One of the more important documents is the Closing Disclosure. It should look similar to the loan estimate you received when you originally completed the full loan application.

5 Major Loan Programs

VA Mortgage

VA loans are available to active and veteran service personnel and their surviving spouses, and are backed by the federal government but issued through private lenders. VA loans allow borrowers to get into a home with zero down and no mortgage insurance.

USDA Mortgage

USDA loans are available to home buyers with low–to–average income. They offer financing with no down payment, reduced mortgage insurance, and below–market mortgage rates.

FHA Mortgage

FHA loans is a US Federal Housing Administration mortgage insurance backed mortgage loans that is provided by an FHA-approved lender. Most banks and lenders offer FHA loans for those with low credit scores and don’t have enough cash on hand to make a large down payment.

Conventional Mortgage

A conventional loans is any type of home buyer’s loan not offered or secured by a government entity but instead is available through a private lender. Conventional loans are one of the great options if you have a solid credit score and little debt.

Jumbo Mortgage

A jumbo loans is a mortgage loan that may have high credit quality, but is in an amount above conventional conforming loan limits. Jumbo loans exceeds the limits set by Fannie Mae and Freddie Mac, the government-sponsored giants that buy most U.S. home loans and package them for investors. 

The Fairway Independent Mortgage Corporation offers conventional loans, jumbo loans, VA loans, as well as Federal Housing Administration loans. The Dan Chapman Team is dedicated to finding the best mortgage rates for their customers, fastest turn times, exceed expectations, guarantee satisfaction, earn trust.

Reasons a Mortgage Loan is Denied

Low appraisal

It’s possible that the loan-to-value ratio (LTV) will be higher than the lender’s legal approval limit if the property’s appraisal is much lower than the amount paid.

Limited down payment and closing funds

You’ll have a good idea of how much you’ll need to put down and how much you’ll need for closing once you’ve sent your financial information to a lender and looked over loan plans. You won’t be able to use these amounts towards your debt. If you can’t come up with the money on your own, you’ll almost certainly be turned down for a loan.

High debt-to-income (DTI)

Before approving you for a mortgage, lenders review your monthly income in relation to your monthly debt, or your debt-to-income. A good rule of thumb: your mortgage payment should not be more than 28% of your monthly gross income.

Bad credit

Many Americans, on the other hand, have no idea where their credit score stands. If this describes your financial situation, your mortgage loan will most likely be denied. You’re just aggravating the situation if you keep making late (or missed) payments on credit cards, especially those with big balances. Until you can improve your credit score, there’s little a lender can do to reverse a loan denial.

No credit

There are others who prefer to pay with cash, check, or a debit card for the majority of their purchases. Why put the amount on a credit card if you can pay it off right now, they wonder? Not all credit card and loan usage is bad. You must have a good credit history in order to demonstrate your ability to take on debt and pay it off on time and in a responsible manner.

4 things NOT to say to your mortgage lender

Anything Untruthful

Lying to a mortgage lender can ruin your chances at approval. On top of that, providing misleading info on a loan application is a felony. 

Not Paying Bills on time

It may cause some alarm if you admit that a few expenses slip your memory from time to time. Those expenses will show up on your credit record even if you don’t say anything. This is the quickest way to get your loan refused.

Getting Another Credit Card

It may not go over well with your lender if you tell them you’ve opened or applied for several new credit cards. Make those major purchases after you’ve finished buying the house. You don’t want to come up as rash when it comes to spending without first gaining consent.

Changing Jobs

Lenders want you to set aside a portion of your income for loan installments. Because your lender may be concerned about your ability to repay the loan if you move jobs frequently, you may not be approved for a loan.

Frequently Asked Questions

Can you borrow 5 times your salary for a mortgage?

Yes. While most mortgage lenders limit the amount you can borrow to five times your annual income, there are a few lenders who are willing to stretch your loan to five times your annual income.

Can I get a mortgage with no income?

With a mortgage co-signer, such as a parent or spouse who is employed or has a high net worth, you might be able to qualify for a mortgage without having a job. In order to add the security of their income and credit history against the loan, a co-signer physically signs it.

Does having a child affect your mortgage?

The arrival of a new member to the family can be a good cause to spend more money, but it should not jeopardize your chances of receiving a mortgage. There may be an issue with your credit, your debt-to-income ratio may be too high, or the property appraisal came in too low if your mortgage application is declined.

Is it better to go to a mortgage broker or bank?

Mortgage brokers know the competitive rates and application criteria for different lenders, and can negotiate on your behalf. Brokers are extremely responsive to all your mortgage loans inquiries. They may be able to help you find a loan if a bank says no, and may be able to get a better deal than if you went direct.

Can you use credit cards during the mortgage process?

During a mortgage transaction, consumers can continue to use their credit cards, but they must be conscious of the timing and avoid making transactions that could cause your loan to be delayed completely.

What is a credit score?

Monitor your credit score as part of your financial products. You’re probably not ready for a loan if you don’t understand what a credit score is. It’s crucial to understand your score and how it came to be. Your chances of approval and a fantastic rate will be increased if you make modifications prior to submitting your application.

What is a credit report?

A credit report is a detailed account of your credit history.