Mortgage Providers

There are a variety of choices for those who can provide a mortgage loan for the purchase of property in Sarasota and Manatee counties. They basically fall into two catagories, mortgage brokers and lenders. While both can provide great rates and service, the way they function is entirely different. 

Mortgage brokers work with a variety of lenders, matching the speific needs and qualifications of the borrower with a lender who offers the best match. By using a mortgage broker you are hiring an experienced agent to work on your behalf to locate the best deal for you. They do the legwork for you, using their market knowledge and skill, working with lenders and completing their necessary requirements. They usually cost no more than working directly with a lender and offer broad market knowledge although they are not the final decision makers on your mortgage approval. 

Lenders work for a specific bank or lending institution. The firm may offer a few or many, specific mortgage products which are available through the company. They do not look outside their company to compare or find a better product from a competing lender. The mortgage product may be a good fit, but lets face it you can't be everything to everyone. By working directly with a lender, you achieve a source with a great depth of knowledge on their specific mortgage products and are a representative of the company that is responsible for your mortgage loan approval.

Below we have a few mortgage brokers and lenders that we have had experience. Click on any of the company banners to go directly to their website. The firms are listed in alphabetical order, not in any order of preferance. If you have any questions, regarding use of any of these mortgage providers in your real estate transaction, please consult with your Sarasota Home Realty agent. 

The 5 Steps to Mortgage Loan Approval

Mortgage providers, brokers or lenders, look at the same things other loan providers look at when providint a loan. As in all requests for a loan, the potential borrower submits an application for credit. Mortgage loans have additional requirements that providers review prior to approving a mortgage loan application.

It is never too early to get started. By following these five simple steps you can be well on your way to your new home purchase.

Step 1: Get Your Credit in Order

Order a copy of your credit report and review it to make sure there are no errors. Take a close look at the accounts. Are they all yours? Are all your payments on time? Are you close to the maximum credit limits? Mortgage providers are usually reluctant to approve mortgage loans for applicants who are behind on their debt payments or who have maxed out their revolving credit accounts.

Get any errors removed from your account and start getting your credit in order. Depending on your financial situation, this may take some time. Reviewing your reported credit standing, removing errors and paying down debt, will certainly result in a higher likelihood of being approved. Additionally, a higher credit rating can result in a lower mortgage interest rate. So, this step is certainly important.

Step 2: Build Up a Down Payment

Different types of mortgages have different down payment requirements, but no matter what type of home loan you want to obtain you will need to have some money set aside for a down payment and closing costs. Most providers also want to see a cushion of savings that will remain after the loan is complete. It is never a good idea to buy a home and have no money left in a deposit account.

The higher your down payment, the more of an initial investment you are making when obtaining the mortgage. Mortgage providers are more likely to approve a mortgage that has a higher initial down payment. View the mortgage provider as your partner in the home buying process. Understand, the mortgage provider views the size of your down payment as your commitment to paying the mortgage.

Step 3: Pay Down Debt

Mortgage providers do not like to lend money to borrowers who are already overwhelmed with debt. Take steps to pay down your debt obligations. Pay down credit card balances and try to pay off any installment loans you have in place. Examples of installment loans include: personal and auto loans.

If you plan on applying for a mortgage loan in the near future, do not close any accounts. Closure of accounts can negatively affect your credit score in the short term. 

Step 4: Consistent Employment

Mortgage providers generally look for two years of consistent employment before approving a loan application. Although this varies from one lender to another, demonstrating the ability to stay employed is quite important. If you are moving for employment opportunities, the provider will want to know that you are remaining in the same occupation. 

If you are planning to apply for a mortgage do not quit your job and open a new business. Save this career change until after you already own the home.

Step 5: The Right Lender

Different mortgage providers offer a variety of mortgage loan products. If you do not have a perfect credit score, do some research, and find out which providers will be willing to approve mortgage applications for people with your credit score. A mortgage broker is a good resource to use.

Research your options before you apply for the mortgage. You will save time and may be able to find a lower interest rate by investing some time into finding an appropriate mortgage provider for your credit situation. The links above provide access, to mortgage providers who have worked with Sarasota Home Realty. Our customers have had good experiences with these providers so it may be worth while to check them out first.

Remember, time is money. The sooner you get started with the 5 steps to mortgage loan approval, the better your chances will be of getting approved for a mortgage loan with good terms and a low interest rate.

Call your Sarasota Home Realty agent, if you have any questions. We are not the mortgage experts, but we do have a team of experts. We know how to help and steer you in the right direction.


Mortgage Provider Links