What separates the best mortgage lenders in Livonia, Michigan, from the rest? It’s simple – they care more about their clients than others. Gem Home Loans experts have seen the other side. We know how most mortgage lenders operate. They say they offer great service, but the reality is much different. Since they care so much more about commissions than what’s in a client’s best interests, they’ll often try to steer them toward certain kinds of loans. In far too many instances, those loans eventually cause big problems.
We’re not like that. We’re independent, so we don’t have to try to sell you on a specific type of home loan. Rather, we shop around among our dozens of investors, looking for the best possible terms and interest rate. If we think a loan is a good fit, we’ll tell you. If we don’t, we’ll tell you that as well.
You have a lot of choices, of course, when it comes to mortgage lenders. Trying to find the best one can become pretty complicated, pretty quickly. Here are a few tips that might help make your decision a little easier.
To be honest, it might not even be worth your time to start researching mortgage companies if you have bad credit. It’s unfortunate, but it’s the truth. When someone has a really low score and tries to apply for a home loan, that’s a huge red flag to a lender. It tells them that you’re far too high of a risk.
Of course, if you can qualify for a government loan, such as one through the VA or FHA, then you might be able to get approved if you have a lower score. Most lenders, for instance, will require VA borrowers to have a minimum score of 620. You could potentially get an FHA loan with a score of as low as 500, but you’ll have to pay at least a 10 percent down payment. If your score is 580, that down payment plunges to 3.5 percent.
If you’re going for a conventional loan, however, you’ll probably need a score of at least 740.
But that doesn’t mean you have to give up your dreams of owning a home. Just take the steps needed to boost your credit. Pay off those high-interest debts, such as credit cards and any loans you may have. Once you do that, your score should jump dramatically.
If your credit is in good enough shape to seriously pursue a home loan, don’t be afraid to ask questions of the different lenders you’re considering. Find out how responsive they will be to your questions or concerns, and find out what kinds of fees they charge (loan origination, application, commission, etc.).
Also, never sign anything unless you have a complete understanding of what’s in the document. Make sure you know the terms, whether or not you’re responsible for closing costs, and more.
Of course, we’re biased, but we truly believe Gem Home Loans experts are the best mortgage lenders in Livonia, Michigan – or anywhere else. Feel free to put us to the test whenever you like. Just give us a call at (248) 780-1030 to learn more, or contact us online.