Study: My Understanding of Homes
How to Choose a Mortgage Lender
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 doesn’t mean their offer is the perfect deal for you.
Here are five pointers to help you choose a mortgage lender:
1. Decide if you will use 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 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 listen to other homeowners about their experiences with the broker you’re eyeing. 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’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. 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 recommendations.
Of course, a broker is not the sole way you can find mortgage lenders. Ask for personal recommendations from friends, relatives or colleagues who might have purchased a home in recent years. This is a great way of cutting through the ocean of prospective lending companies out there.
4. Speak to 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 can not only serve as an good icebreaker, but it can also work to your favor in terms of reducing closing costs.
5. Choose a lender with a good 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.