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 work with a mortgage broker.
Using the services of a mortgage broker has its benefits. A broker will do most of the work involved when you’re trying to find lenders, which means you enjoy 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.
Should you decide that a broker will be helpful to you, take the time to do your homework. Ask for references and be guided by other homeowners’ experiences while working with the specific broker you’re considering. Brokers who refuse to provide references from their past clients should be avoided simply because they are most probably hiding something.
2. Know what kind of lender you want.
Do you want prefer a small local lender or a big national company? If you want a lender that can offer personalized customer service, choose a smaller lender that is known in your community. If you’re more inclined to choose a lender for its interest rate, then a bigger one might be your best bet. Understanding the differences among lenders of various types and sizes will help you find the one that is perfect for you.
3. Ask for personal 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. Meet with your agent.
A good agent will recommend other mortgage companies aside from their in-house lender, and a smart loan officer will also take special care of customers who approach them through the recommendation of an agent. Take advantage of this, and make sure the lender you come up to is aware that they were personally recommended by our agent. 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, whatever you heard about a lender, whether from relatives, friends or coworkers, make sure to do a background check. Find out as much as you can regarding the company to avoid future headaches.