In a recent episode of the "Protecting What Matters" podcast by the Ohio Department of Commerce, experts from the Department's Divisions of Financial Institutions (DFI) and Real Estate and Professional Licensing (REPL) joined forces to shed light on one of life's biggest decisions: buying a home. With over 10,700 home sales reported across Ohio in March 2024, averaging above $275,000 per sale, the stakes couldn't be higher.
Pamela Prude-Smithers, Deputy Superintendent at DFI, emphasized the importance of laying the right foundation. "We urge homebuyers to approach the selection of a mortgage lender with due diligence," she stated. "Engaging with at least three different lenders allows for a comparative perspective, reinforcing the importance of selecting a provider that aligns with the buyer’s financial and personal comfort."
With 80% of recent buyers financing their home purchase, choosing the right mortgage lender amidst fluctuating rates is paramount. Prude-Smithers advised prospective buyers to secure preapproval before diving into the market. This step not only clarifies affordability but also reveals potential interest rates.
Here are some key takeaways to ensure you're making the best choice:
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Do Your Research: Prepare detailed information on income, assets, and desired down payment before meeting with lenders.
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Build a Relationship: Look for lenders who offer clear, comprehensive answers without rushing the process.
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Reputation Matters: Start your search with companies or lenders boasting strong reputations. Seek referrals, check online reviews, and consult the Better Business Bureau.
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Utilize the NMLS: The Nationwide Multi-State Licensing System provides crucial details on a company’s license status and past regulatory actions, aiding in vetting potential lenders.
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Research and Compare: Not all lenders offer the same products or rates. Explore multiple options and compare interest rates, fees, and loan types to find your best fit.
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Be on the Lookout for Red Flags: Watch out for upfront fees, negative reviews, and discrepancies on official websites, including mismatched NMLS numbers and unlicensed loan originators.
By adhering to these guidelines, prospective homebuyers can navigate the mortgage landscape with confidence, ensuring a smooth and informed homebuying journey. For more insights, tune in to the "Protecting What Matters" podcast by the Ohio Department of Commerce.