When it comes to mortgage many people find it confusing. It is because we don’t deal with it frequently like other products. For some it is  once in a life time experience and for some people might be more, especially, when you are a real estate investor . Some knowledge of mortgage and how the qualification process works will help you a lot. 

Before going to a lender, the more information you have the better it would be for you. Understanding mortgage terms, main points and how it works help you to avoid unnecessary penalties later. Here are the few points to keep in mind to help you choose the right option:

1. Interest rates may vary a lot from one lender to another

2. A person might have a bad credit for many reasons. A bad credit does not mean you can’t get a mortgage. The FHA program is very flexible if your credit is below average. Also some lenders might go as low as 500 for FHA loans. So, even without an excellent credit you still have some options..

3. Big banks are not the only entities licensed to provide you the mortgage. There are hundreds of lenders who are licensed and specialized in mortgage products. You might get much better options there. To find out the licensing information about a mortgage lender you need to visit the link https://www.nmlsconsumeraccess.org/ and as soon as you type in a lender name or nmls number , you have the licensing information about this particular company. You can also search a licensed professional information there.

4. There are many types of mortgage products. For example , FHA, conventional , no-doc loans, jumbo loans, high balance and conforming loans. On top that there are mortgage products for a primary residence ,a second home, an investment property. What you need depends on what best suits you as a borrower.

5. Your purchasing power and options would highly depend on your income, property type, down payment, your credit history, your employment, etc. Doing some research online and consulting an experienced and knowledgeable loan officer would provide you the best option that you deserve.

6. When shopping you can go to a mortgage lender or a bank or a broker. Brokers work with multiple lenders. It is kind of a one stop solution for your mortgage needs. A broker usually provides you rates from multiple lenders and find the best option for you.