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 doesn’t mean their offer is the perfect deal for you.
Here are five pointers to help you choose a mortgage lender:
1. Decide whether you’ll want a mortgage broker.
Working with a mortgage broker comes with benefits. Because they will do most of the work of finding lenders, a broker can give you time and energy savings. But there are disadvantages as well, like when they go for the lender that gives them the biggest profit, even if it’s not in your best interest to pick that lender.
If you decide to work with a broker, research is a must. 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 the kind of lender you need.
Do you prefer a small lending company or a big one? If you’re looking for personalized service, go with a smaller lender that has a good reputation in your community. If you’re more concerned about getting the best interest rate, then consider a bigger lender. 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. Ask for personal recommendations.
Of course, a broker is not the sole way you can find mortgage lenders. 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. Talk to 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. Use this to your full advantage, and ensure that the lender knows that you came on your agent’s recommendation. This will not only be a nice icebreaker, but it can help you in terms of reducing closing costs.
5. Choose a lender with a good 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.