Finding the Right Mortgage Lender for You
One of the most important decisions you will have to make in terms of your home mortgage will be which lender to go with. Today, there are practically tons of mortgage lenders that are eager and prepared to accept your loan application. But that hardly means that their offer is automatically the best you’ll find.
Here are five pointers to help you choose a mortgage lender:
1. Decide if you will use a mortgage broker.
Using the services of a mortgage broker has its benefits. A broker saves you time and energy by taking care of a big portion of the work of finding lenders. But there are drawbacks too, as when they get you a lender that offers them the highest profit, never mind if it’s not the best for you.
If you decide that you need a broker, take the time to do a bit of research. Ask for references and let other homeowners help you decide by listening to their stories about the broker you’re planning to hire. Brokers who don’t give you client references should be avoided because clearly, they are hiding something.
2. Know what kind of lender you want.
Are you thinking of a small lender or a large company? If you want personalized customer service and a lender that actually knows your name, you would probably want to choose a smaller lender with a great reputation in your area. If you’re more particular about getting a nice interest rate, a bigger lender may be your best choice. If you know the differences among lenders of varied types and sizes, it will be easier to see which one is actually best for you.
3. Seek referrals.
Definitely, it’s possible for you to find mortgage lenders without the help of brokers. Ask for referrals from family members, friends or coworkers who have purchased a house just recently. This is a good way to cut through the sea of prospective mortgage lenders out there.
4. Talk to your agent.
A good real estate agent will recommend other lenders aside from their in-house company, and a good loan officer will take particularly special care of those who have been recommended by a real estate agent. Take full advantage of this, and be sure that the lender you speak to, knows that your agent recommended them to you. This will not only work as an icebreaker, but it can also be a huge help to you as far as lowering closing costs is concerned.
5. Select a highly reputed lender.
Finally, regardless of what you hear about a lender, always do a background check.
Lastly, no matter what great things you heard about a lender, whether from family or friends or online, a background check is imperative. Know the company as much as you can in order to avoid headaches in the future.