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How to Secure a Loan from the Top Connecticut Mortgage Lender Institutions

Secure a loan for mortgage

Looking to apply for a mortgage loan in the Connecticut area but don’t know where to start? Getting a mortgage account can be an exciting time in your life, but you have to take the necessary steps and choose the best lender and loan option available to you. 

Whether you decide to go with your own bank or consult with a mortgage broker, there are several important details you should know before making your decision. Here are some tips for finding a Connecticut mortgage lender to help you secure your dream home.

Banks 

Most banks offer mortgages as part of their services, and you can take advantage of their experience and expertise. In addition, it may be easier to get approved for a loan if you already have an account with them. 

On the other hand, there is often more paperwork involved, especially if you don’t have much credit history or assets. 

If your bank doesn’t offer mortgages, they might be able to refer you to another lender that does. They might also know about any incentives they have available for borrowers who use their own bank.

Credit Union

Over 5,100 federally insured banks and credit unions operate in the U.S, ranging from small to large lending companies. Like banks, credit unions offer a range of financial services, including loans, checking accounts, and mortgages. 

To apply for a loan with a mortgage lender like a  credit union, you’ll need to be a member of that organization. Membership requirements vary by institution, but most require that you live or work in an area served by the credit union. 

Many also require that your family have lived or worked in that area. To open an account with a credit union, you’ll need to fill out an application and provide proof of identification and residency. 

Non-Bank Mortgage Lenders

Nonbank mortgage lenders are also able to provide loans to consumers. Some of these lenders operate exclusively online, with services primarily focused on mortgage loans, so one advantage of seeking a mortgage loan with these lenders is that they usually approve loans quickly. 

Prysma is an online lender offering Connecticut mortgage loans with over 19 years of experience financing home mortgages. Prysma also offers ITIN loans or mortgage finance for clients without Social Security Numbers or Greencard. Lastly, everyone at Prysma speaks Spanish, Portuguese, and English, so you are sure to discuss your mortgage needs in your preferred language. You can get started by contacting us or visiting our website at Prysma for more information. 

Another benefit of contracting with nonbank mortgage companies is that they may be more willing to work with you even if you have imperfections on your credit report, as opposed to traditional banks.

Contracting with Mortgage Brokers

Are you too busy to search through all the mortgage lenders at your disposal? Why not have a mortgage expert by your side to research several mortgage lenders and find the best deal for you? 

Mortgage brokers can guide you through all of the possible mortgage lenders that meet your requirements, but they cannot make any decisions on your loan. They simply send your paperwork to different investors and wait for an answer (A non-bank mortgage lender like Prysma pre-approves loans IN-HOUSE and can give your best scenario immediately.)

Brokers are privy to a wide range of lender information, can help you compare offers from different lenders, and act as an intermediary to help you prepare the necessary documents required for underwriting.

However, keep in mind that a mortgage broker might cost you more since they often earn a commission from you when you close the loan. It would help if you also considered that having a broker gives you access to knowledge and expertise on unavailable opportunities to the general public. 

We recommend that you review all of your options as well as compare offers from different mortgage brokers to get a better sense of the available choices.  

Mortgage Loans Marketplaces

You can find companies that offer a service that lets you compare the interest rates of several mortgage lenders and choose which one you want. Additionally, they may offer a lower closing fee, something worth considering. 

When you use a mortgage marketplace, the lender you choose will help you with the entire loan application process. Taking this step will save you valuable time by allowing you to compare mortgage rates across multiple lenders on a single website.

A Guide to Finding the Best Mortgage Lenders

With the presence of the internet, it’s never been easier to find the best mortgage lender to work with. Many aggregation sites and mortgage lenders actively post ads with competitive interest rates to attract visitors to their websites.

You may also refer to your bank to see if they have an offer for you because of your existing relationship with them. However, don’t decide yet and keep your options open. 

Get quotes on interest rates, special offers, and a complete list of fees from multiple lenders to find the best deal. It’s wise to be diligent in evaluating your loan options since this is a long-term commitment. Don’t miss any chance to save money and secure the best possible offer.

You can also ask friends or realtors who may be able to recommend lenders or brokers they have worked with previously.

Mortgage Loan Preparations

We recommend assessing your financial readiness before applying for a mortgage loan or pre-approval. Taking this step will greatly increase your chances of receiving the best rate. 

The following are additional steps you may take in preparing for a mortgage loan application:

Credit Score

A Mortgage lender will check your credit history as part of the application process, so it is good to review your credit score several months before applying. 

Get in touch with the banks where you hold credit accounts and get information on how they can guide you in increasing your credit score. Verify that your credit report does not contain any errors, such as incorrect late payment history, and ask to have them removed.

Pay off credit card balances on time and avoid opening new credit accounts before applying for a mortgage to maintain a good credit score during the credit check. 

Preparing Your Down Payment

A mortgage lender typically asks for a down payment of at least 20% of your property’s value. It is a great target to have since you’ll get a favorable loan term and won’t be required to pay private mortgage insurance (PMI). 

However, home buyers, even first-time buyers, could negotiate a down payment of 6% or less with their financial institution. This is acceptable so long as you can afford your monthly payments.

Stable Income

A mortgage lender wants to know if you earn enough money to cover your monthly mortgage payments. Maintaining a steady flow of income that will enable you to repay your loan on time is essential for your loan to be approved and to reduce the amount of risk your lender assumes.

Questions For Your Mortgage Lender

Before choosing a mortgage lender, ask the following questions to ensure you are dealing with the right company. 

  • How long is the loan application process? 
  • Are you going to handle my application all throughout? Who will help me with the underwriting process? 
  •  What is the best way to contact you? 
  • What are the things that I could complete online, and what are the things that I need to do at a brick-and-mortar location? 
  • Who will pay the extension fee if the closing date is missed due to delays that were not my fault?

What to Ask Your Mortgage Broker

Ask these questions to your brokers to make an informed decision before obtaining a loan: 

  • How many mortgage lender offers did you review?
  • What made this lender stand out from other lenders?
  • Who offered the best interest rate among the companies that you have researched? 
  • What fees and commissions will you charge for this loan?
  • Who will pay for the broker’s fees and commissions? 

Comparing Mortgage Loans

Before selecting a mortgage lender, examine the mortgage rates and fees of several lenders and or brokers to ensure you’re getting the best possible deal.

The following are guidelines to help you find the best mortgage rates:

Mortgage Rates

The interest rate is an important factor in choosing a lender, but it shouldn’t be the only factor in making a decision. Remember that mortgage rates are subject to change, so ensure you work with the best lender before committing to a rate and proceeding with the loan. 

 Also, ask about the mortgage points and fees you can pay for a reduced interest rate. Ask what they will cost you and whether you need them.

Comparing Mortgage Offers

Before selecting a mortgage lender, examine the interest rates and fees of several lenders and or brokers to ensure you’re getting the best possible deal.

 The following are guidelines to help you find the best mortgage rates:

Interest Rates

The interest rate is an important factor in choosing a lender, but it shouldn’t be the only factor in making a decision. Remember that interest rates are subject to change, so ensure you work with the best lender before committing to a rate and proceeding with the loan. 

 Also, ask about the mortgage points and fees you can pay for a reduced interest rate. Ask what they will cost you and whether you need them.

Fees

 There are many fees associated with a mortgage account, and not every fee is simple to understand. Most lenders will thoroughly explain these things to you, but others may not be as detailed as you had hoped. 

Although we don’t like to read the fine print, it’s a good habit to get into. Read the fine print and make sure you understand everything because, once again, this is a long-term commitment. 

Review your documents and ask any clarification questions, especially about the following:

  • fees
  • payment options
  • processing fees
  • miscellaneous fees
  • closing fees

Down payments and insurance

It’s great to make a substantial down payment on your loan as much as you can; however, you should save up for other expenses like renovations or buying new household items before you move in. 

Make sure you ask your lender or broker what options are available to make your loan process go smoothly.

Once you have decided which offer is best for you, you are now ready to proceed with the application process. Check that all your documents are in order and that your bank is ready to transfer the closing fees.

Regulations prevent banks from offering instant transfers, so be aware of all the transfer options available to you as well as the time frames for those transfers to avoid delays.

It All Boils Down to… 

A house is a high-value asset, making it logical to apply for a home loan rather than rent. Mortgages allow you to build equity in your property while renting does not give you any financial gain over the lease term.  

Mortgages are long-term commitments, so you should be diligent in researching everything you need to know before signing up for one. Our guide explains what you need to know when deciding to apply for a mortgage account.

Prysma is the most trusted mortgage lender in Connecticut, and we work to provide you and your family with the best mortgage lending options. 

We have helped thousands of families over the years, and we will be glad to answer any questions you may have about conventional loans, non-conventional loans, refinancing, FHA loans, and so much more. Chat with us today for further assistance.