Choosing The Best Dothan Mortgage Brokers/Lenders
Dothan Mortgage Lenders
Mortgage rates hit all-time lows at the start of 2021. Even though they’ve gone up a bit, it’s still a great time to get financing for a new home. Picking the right mortgage might seem overwhelming, but with the help of one of Dothan’s top-notch mortgage brokers, it’ll be a breeze. Keep reading to find answers to common mortgage questions and our top picks for the best mortgage brokers in Dothan.
Choosing a lender
A mortgage broker will help you find the loan that fits your needs. Once you’ve picked a mortgage, your broker will handle the paperwork, check your credit history, and help you apply for the loan you want. Picking the right mortgage broker is key, as they’ll be a crucial part of your home-buying journey.
201 Spring Oaks Way-Listed At $4,979,000 Is The Highest Priced Listing To Hit The Market In Dothan.
Is A real estate broker the same thing as a mortgage broker?
No. A real estate broker (or agent) is licensed by the State of Alabama to help buy or sell real estate. While a mortgage might be part of the process, real estate brokers aren’t licensed to originate mortgages. For that, you need a mortgage broker who has passed the National Mortgage License System (NMLS) test. They can work for a lender, a bank, or independently, and their job is to help you get financing for your new home.
Should you shop around for a mortgage broker?
Absolutely, you can. Shopping around for mortgage brokers is a smart move, especially to see what fees you’ll be looking at once you pick a loan. When you talk to brokers, remember to ask if you qualify for a loan, what the costs will be, and about the loan programs they offer. Brokers who work directly with banks or specific lenders might have access to different loan products than independent brokers. When you start reaching out to mortgage brokers, it’s also a good time to get pre-approved for a loan.
How much commission to mortgage brokers make?
On average, mortgage brokers make commissions between 1% and 2.25% of the mortgage totals on each deal they close. By federal law, they can’t earn more than 3% of the full loan amount.
is it ok to use multiple brokers?
Yes, you can use multiple mortgage brokers. In the past, this wasn’t a great idea because every loan application would do a “hard pull” on your credit, which could lower your score. But now, there’s a rule that lets you apply to as many lenders as you want within a two-week period without it affecting your credit. This way, you can shop around and make sure you’re getting a fair deal.
Before you start shopping around with different mortgage brokers, remember that it takes time to fill out loan applications and provide all the financial documents. We suggest talking to 2 or 3 lenders over the phone and seeing what they can offer. We also highly recommend going with a local lender instead of an online one. Your mortgage lender will play a crucial role in the homebuying process, so it makes sense to choose someone who knows the local market and isn’t just pushing paper from another state.
who is the best mortgage broker in dothan?
Dothan has a great selection of trustworthy, experienced mortgage brokers. Here are some of the brokers we regularly work with:
- Heather Gatewood with Interlinc Mortgage has been the lender on many of the deals that we have closed over last several years. Heather is very professional and makes herself available for her clients. She specializes in Conventional, FHA, VA and USDA loans.
- Michael Walden with CMG Home Loans delivers the personal service of a local lender while leveraging the resources of a national brand. They operate in all 50 states and have over 1200 reviews praising every part of their closing process. Michael has been a solid resource to me consistently over the last several years.
- If you’re investing in commercial property, Troy Bank & Trust and River Bank & Trust have been our go-to lenders to help our investor clients achieve their goals. Both banks have multiple local branches throughout the Dothan area.
- Ashley Merritt with Alabama AG Credit has helped me personally with purchasing land as well as many of our clients. Their pre-approval and closing processes are simple and their rates are competitive. Also when you are approved with a loan with them they apply part of your payments into stock-ownership which is a unique benefit that I’ve never seen any other lender do.
what are the average dothan mortgage rates?
As of July 2024, Dothan mortgage rates are similar to the national average, around 6.5%. Click here to see real-time Dothan mortgage rates. Be cautious of the rates you see advertised online—they often seem super low because they reflect high closing costs and buying points to lower the interest rate. When shopping for mortgages, make sure to compare the APR (annual percentage rate) and not just the interest rate. The APR includes closing costs and bank fees, giving you a clearer picture of the loan’s true cost. Comparing APRs from different lenders will give you an apples-to-apples comparison.
finding the right time to buy
Should Rates Influence My buying Decision?
Low mortgage rates can be a great reason to finally buy a new home. They can make buying a home more affordable since lower rates mean lower monthly payments and savings in the long run.
But keep in mind, as mortgage rates drop, home prices often go up because more people can afford loans, which increases demand. So, low mortgage rates shouldn’t be the only factor in your decision to buy a home. It’s a good idea to look at the overall affordability of the home, including the monthly mortgage, utility expenses, maintenance costs, property taxes, and insurance. Make sure you look at the whole picture before making your decision.
should I refinance my home and purchase an investment property?
Refinancing your home means taking out a new loan to replace your current mortgage. Over the past year, with interest rates going up, many homeowners in Dothan have put refinancing on the back-burner for now. But refinancing when rates become lower can lead to lower monthly mortgage payments and save you money for home improvements, allow you to pay off debt, or buy investment property.
There are three ways to refinance: cash-out, rate-and-term, and cash-in. Cash-out refinancing involves taking a new loan that’s larger than what you currently owe and cashing out the excess money. Rate-and-term refinancing allows you to adjust your mortgage’s rate or terms to lower your monthly payments. Cash-in refinancing requires you to pay down your existing loan with cash, which can lead to lower rates.
If you choose to refinance and use the cash to buy investment property, you could potentially earn more by renting out the new property. Some buyers use this strategy to finance a second home that can also serve as a short-term rental investment.
Buying a home is a big decision, but with the right mortgage broker and an affordable loan, your dream home in Dothan is possible. We’d love to help you find the perfect house in Dothan or the surrounding area. Check out the newest listings, and then contact us to let us know where you’re thinking of moving. We’d love to hear from you.
