Finding a mortgage lender is easy. If you have ever tried to fill out your personal information on any mortgage company’s website, your mailbox is sure to be filled with overly keen and enthusiastic brokers who want to be your new best friend. This, however, is not the right way to find a good mortgage lender. You are on your way to buy a new house, you surely don’t want any hassle or feel pressured.
Buying a house is rewarding when you find a good lender. It is thus important to take your time and do proper research. Educating yourself about the process is more important than finding a lender. Look for two or three lenders first, compare their rates and terms, and then conclude. Let’s look into some factors that will help you narrow down your list to find a good mortgage lender.
WHAT DO YOU NEED TO BORROW?
Don’t beat around the bush. It is better to end conversations in an organized manner than a disorganized manner. This is only possible when you chalk out how much cash you have in hand and what you will need to borrow from the lender. You also need to check your savings so that you can cover your down payment and other costs related to buying a house. Furthermore, a lender makes sure to check how much money you have kept for emergencies such as job loss. Hence, before choosing a lender, look into all the requirements yourself, as this will help you convey your ultimate goal directly rather than going back-and-forth around the conversation.
REFERRALS AND RECOMMENDATIONS
Asking for recommendations will give you a fair idea about the lender’s past lending experiences. It will also enable you to interact with old customers to whom you could ask several whereabouts of the lender. You can evaluate a lender based on their customer satisfaction. Sometimes your financial advisor or real estate agent may be able to recommend a few local mortgage brokers or lenders they trust, though you shouldn’t just trust what they say. It is a good starting point.
LOCATION OF THE MORTGAGE LENDER
Even though the location is not a big factor when it comes to finding the best mortgage lender but it is a factor at the end of the day because if a lender is in and around your location, then the lender will easily be able to meet crucial funding deadlines and work it all out within tight timeframes.
You can seek help from loan officers of various lending institutions, whether a bank or credit union or online loan. All such people have a back interest, which is to get you to apply for a loan with their institutions. They tend to make sure that you sign up for a mortgage irrespective of the fact that they are offering you the best price or not. Make use of this situation, help them earn in this business. Ask for all sorts of costs and fees, including application fees, appraisal fees, commissions, and more. In this way, you will be able to compare the rates of different lenders and choose the one that suits you the best.
NARROW IT DOWN
The moment you make a call, you will understand if the lender is right or wrong by following your line on the conversation. Notice if they discuss the timeline and particulars of the loan, including estimated closing date and costs; after understanding the same, do they brief you about their line of operation. Further, were they honest with you about rates? Trust your guts as it is essential. You will know if a lender is right or not following the three C’s, competent, capable, and care. Following these tips will help you make the best decision.