Summary: Anyone looking to buy a home in Spokane, WA will likely need a mortgage to finance it. If that’s you, then you will want to make sure that you work alongside a trusted mortgage company that will provide you with the best mortgage product for your situation. This article will offer tips on how to find the best mortgage company in Spokane.

Located along the Spokane River in the state of Washington, Spokane is a lovely city that is characterized by gorgeous natural landscape that is found all over the Evergreen State, as well as a plethora of cultural centers and events that make Spokane a great city to live in. The city has a strong local economy, providing residents with a great place to work and find relatively affordable housing compared to other centers across the state.

Right now, Spokane is considered a very hot market, which means buyers will find themselves competing rather fiercely for homes as the demand for housing in the city is high. While the price of homes is low compared to other cities and even the nationwide median, prices are expected to increase quickly over the next year.

Considering the temperature of the market in Spokane, WA right now, it is best for you to make sure that you team up with an experienced mortgage company that knows the area and is able to offer a variety of mortgage programs.

Finding the best mortgage company in Spokane will make your home purchase transaction as successful and stress-free as possible. When you find your dream home in the city, you’ll want to have a trustworthy and reliable mortgage company ready to take action to help you secure a mortgage needed to seal the deal.

In this article, we will provide you with a brief overview of the real estate market in Spokane and give you some solid tips on how to find the best mortgage company to work with.

Overview of the Spokane Real Estate Market

As of early 2020, the city of Spokane has a median home value of about $253,200. This is very affordable relative to the cost of other cities in Washington, such as Seattle, which currently has a median home value of $752,100. Spokane’s median home price is also a lot lower than the statewide median of $419,900, so it’s a pretty affordable place to buy a home in Washington.

As already mentioned, the real estate market in Spokane is currently classified as “very hot” according to Zillow. Home prices have increased a whopping 11.1% over the past year and are expected to climb another 6.4% over the next year.

Given this home value, the average down payment would be $25,320 if you put forth a 10% down payment. Of course, you can make a down payment as little as $8,862 based on a 3.5% down payment minimum for an FHA loan, or as much as $50,640 based on a 20% down payment for a conventional loan.

The down payment amount that you make will also depend on the mortgage company in Spokane that you select, which is just one reason why you should take the time to make the right choice on who to work with.

Tip #1: Improve Your Credit Score

The first thing you should do when shopping around for a mortgage company in Spokane is to make sure your credit score is in good shape. Lenders will look at your credit score before they determine whether or not to approve your mortgage application. If it is too low, you stand the risk of being denied a mortgage. And even if you are approved, you will likely be offered a much higher interest rate, which will make your mortgage more expensive.

Before you shop around for a mortgage company, take a look at your credit score, and if it needs improvement, do what is necessary to give it a boost. This includes making all bill payments on time and in full, not maxing out your credit card, making more than your minimum credit card payments, and not applying for too many loans and credit lines within a short period of time.

By improving your credit score, you will open up many more windows of opportunity in your financial life, and that includes getting approved for a mortgage at ideal terms and rates.

Related: Check Your Credit Score for Free

Tip #2: Ask the Right Questions

When you are narrowing down your search for a mortgage company in Spokane to work with, you will want to approach the process as if you are interviewing each company. The questions that you ask will provide you with the answers that will help determine which mortgage company is best suited for you.

There are a number of questions that you should ask when conducting these “interviews,” including the following:

• What rates can I offer?
• What types of mortgage programs do you provide?
• What kind of closing costs can I expect?
• What will my mortgage obligations be?
• What fees do you charge?
• What down payment amount do I need to provide upfront?

An experienced mortgage company will provide you with solid responses to all of these questions. You should feel satisfied with the answers you are given, and if not, you should keep looking. Any mortgage company that is unable to answer each of these questions in great detail is likely not the right entity to work with.

Tip #3: Compare Interest Rates

There are a number of factors that should be compared from one mortgage company in Spokane to the next, and that includes the interest rate offered. While there are many aspects to consider, the interest rate can make a huge difference on the overall cost of your mortgage.

Luckily, it’s easy to generate rate quotes from various mortgage companies thanks to the World Wide Web. A few simple Google searches can help pull up a number of rate quotes that you can then compare against each other. Make sure to not only compare interest rates, but also consider the fees that come with each mortgage. While one mortgage may come with a lower rate than another, the fees that are tacked on can still make it more expensive. Make sure the numbers add up.

The point is that you should closely assess the mortgage interest rates offered by your options  before you make your final decision.

Tip #4: Thoroughly Review Each Mortgage Company

Now that you’ve narrowed down your search and have a short list of mortgage companies to choose from in Spokane, now is the time to really drill down to make the final decision on who to work with. In this final phase, you will want to gather even more pertinent information about mortgages and what each company is able to offer you.

They may all know their stuff about mortgages, but it ultimately comes down to what they can actually provide you. You will want to know details about what you can get and what you will be charged for. Things such as closing costs, exact down payment amount, APR, underwriting and administrative fees, and discount points are important factors that will influence the overall cost of your mortgage.

You’ll also want to know more about the mortgage programs, down payment assistance programs, terms, and mortgage payment schedules you may be offered, so be sure to gather all the details about these aspects before you choose your mortgage company.

At the end of the day, you want to get an idea of the financial stability of the mortgage lender to ensure you won’t have to deal with any unpleasant surprises at any point along the way. You will also want to know how your current financial profile aligns with what the lender expects from borrowers.

Related: Loan Programs Available For Home Buyers

Get More Info From Sammamish Mortgage

There is so much to know about mortgages, and it’s difficult to get all that information from just one article. What you should do is speak directly with one of our mortgage specialists at Sammamish Mortgage. With nearly three decades of experience in the world of mortgages, we have extensive knowledge of home loans in Spokane, WA. We offer many mortgage programs to borrowers in Washington, Oregon, Idaho, and Colorado, and we encourage you to give us a call today to get fully informed about mortgages before you make the leap into homeownership!