With improving economic conditions for everyone and mortgage lending rates on a record low, there has been no better time to buy. Due to the chance of them rising again, there is also a sense of urgency in the market. Buying a home in itself, is a huge financial decision, and while lenders are usually relaxed about who can get a loan, if you are in the market to borrow, at this point, it is not just a decision of “Will I get it?” but also “Who do I borrow from?”.

Without further ado, here are five tips for buyers opting for mortgage lending along with the best mortgage lenders of 2017 you can get a mortgage from:

Make sure your finances are in good shape

It cannot be stressed enough that buying a house is going to be the largest purchase most people will ever make. And with mortgages commonly being paid over a 25 to 30 year period, it is one of the biggest financial investments to be made regarding both, time and money. Because of this, it is imperative for potential buyers to be in a favorable financial standing before committing to a mortgage loan. The bad financial condition might automatically make you ineligible for a mortgage lending because of policies that most lenders abide by.

Explore down payment programs that suit your pockets

Most down payments for houses are typically in the 10-20% range, which is a significant amount of money any way you look at it. It takes years to build up that much money saving in every way possible. Even then, you may not reach the optimum amount required. Don’t be discouraged though; many lenders offer various plans for down payment depending on your capacity. Exploration of the possibilities by enquiring with a wide range of lenders helps in this case. Make use of the internet to look for the best lenders and mortgage lending in your area.

Research loan types

It’s important to note that there are mortgages of different types too. They are not a one-size-fits-all rule. Depending on your long-term plans, you have two options:

• Fixed rate mortgage or FRM, is a great option for buyers who are looking for reliable payments over an extended period, typically 15 to 30 years. Although it’s important to know that with this type of loan you will pay more over the life of the loan, you will have reliability concerning the interest rate.
• Adjustable rate mortgage or arm is a good idea if you intend to stay in your home for a short time. The listing period can range from 5 to 10 years. Most of the programs have a capped lifetime interest rate that is low initially and then adjusted every six to twelve months.

Make sure you are aware of the closing costs

While most buyers are familiar with the idea of down payments on mortgages, closing costs, due to their low rates are not as talked about. For a typical mortgage, the closing costs range from 2 to 5%. The bigger the payment for the house, the higher your closing costs. Look for plans that factor in the closing costs, so you have the best deal for your savings without significant pressure on you.

Get a fixed rate

All said and done; Fixed Rate Mortgages are still a better option when it comes to buying a house. They provide better stability on interest rates and have less chance of moving up and down erratically. Depending on the market situation, if the interest rates for FRMs are high, ARMs automatically become the popular choice. But it should also be noted that ARMs are not reliable due to shuffling rates. Your best time to buy a home is when the FRMs are ridiculously low.

Best lenders of 2017

That concludes the list of tips for buyers to make their mortgage experience hassle-free. Although, the question remains, “Who to get it from?”. Before we answer that question, we need to know how to judge whether the lender you chose is the right one.

The best lenders have four things in common:

Fair rates

They offer fair rates and comprehensive plans.

Online tools

They provide you easy access to tools to help you make the financial calculation.

Quick to communicate

They are prompt in response to queries and have an efficient team to solve all your doubts.

Customer service

They have great customer service and won’t leave you hanging if a problem arises.

That said, here are the top five lenders to choose from if you are looking for lenders and mortgage lending – Quicken Loans, Alliant Credit Union, Citibank, First Internet Bank, and New American Funding. Apart from checking every box listed above, they provide thorough consultation to ease your process. Their rates may vary, but these are the best places to start. This is how you carefully look into the mortgage lending.