Finding the Right Mortgage Lender for You
Among the most crucial decisions you will probably make when it comes to your home mortgage is which lender to select. 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.
The following are five tips for selecting the right mortgage lender:
1. Decide if you will work with a mortgage broker.
There are benefits to getting a mortgage through a broker. Because they will do most of the work of finding lenders, a broker can give you time and energy savings. But there are drawbacks as well, such as when they bring you a lender that gives them the biggest commission, regardless of whether this lender is the best for you or not.
If you decide to work with a broker, research is a must. 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 hesitate to give references from previous clients must be hiding something.
2. Know what type of lender works best for you.
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. Understanding the differences among lenders of various types and sizes will help you find the one that is perfect for you.
3. Seek referrals.
Definitely, it’s possible for you to find mortgage lenders without the help of brokers. Seek referrals from people you know – friends, relatives, coworkers, etc. – who may have bought a home recently. This is a good way to cut through the sea of prospective mortgage lenders out there.
4. Meet with your agent.
Good agents do not limit their recommendations to their in-house lenders, and good loan officers provide good care to customers who come to them on an agent’s recommendation. 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. Pick a lender with a positive reputation.
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.