Finding A Great Lender
If not paying Cash, you will need to find a Lender to help pay for your home. Who do you call?
If you already have a relationship with a bank or mortgage company, I would start, but not end, there. Each Lender is different, and I would contact at least one or two other firms before making a decision.
A good source for Lender recommendations are experienced REALTORS®. They have built relationships with good, reliable Lenders that offer competitive rates and prices. Ask your REALTOR® for a recommendation or consider one of the firms we have listed on our For Buyers page.
What makes a Great Lender? Here are three key things to look for: Good Rates, Low Costs and Excellent Service. Let’s take a closer look at each of these.
Interest Rate: The lower the interest rate, the lower your payment. But also see Loan Costs.
Loan Costs: The Lender will charge one or more fees to process your loan. Some examples of these costs are Loan Origination Fee, Underwriting Fee, Processing Fee, Application Fee, Discount Points, Flood Certification, etc. When comparing Lenders, it is important to compare Interest Rates AND their Fees for obtaining a loan.
Service: It is easy to compare Interest Rates and Loan Costs as they are numeric, but determining service is difficult, especially if you have not worked with the Lender previously. The best Lenders are able to perform; they can usually determine in your initial meeting if you will be able to obtain final loan approval. Good Lenders also provide regular, accurate reporting as the loan is being processed to ensure all deadlines are met. Generally speaking, we recommend only working with Lenders that have a local Tucson office. Ask your REALTOR®® for advice or a recommendation.
Your Lender will be able to tell you how much of a loan you will qualify for and what your monthly payments will be. This will help you decide what price range you are comfortable with, which is a key factor in your home search.
First Time Buyers: A Lender will also be able to help you compare your costs of renting to home ownership and the benefits or pitfalls of each. We have worked with a number of companies and Loan Officers in Tucson, and there are a few we recommend that offer competitive rates and great service. We have listed four Lenders on our For Buyers page; if you would like some more information or have any questions, feel free to contact us.