Once the decision to purchase a home is made, the next major task is finding the best mortgage lender. There are lenders teeming everywhere, looking for a homebuyer to join their portfolio. However, there is more to finding a lender than simply getting your loan application approved.
A home mortgage is something you will be dealing with for years and years. It is important to find the right mortgage lender for you and your needs. So, how do you go about finding the best one for you? Here are five things to think about when choosing the right mortgage lender for you.
Narrow it Down by Type
It is important to consider the type of mortgage lender you are looking for. Do you prefer a smaller mortgage company that focuses on customer service? Or are you more interested in a larger lender that offers the lowest possible interest rate? Remember, this is a long-term commitment and you want to make sure your lender fits your personality.
Lean on Word of Mouth
The best reference a company can possibly have is from a previous or current customer. Ask friends and family who their lenders are and what they think of them. A personal opinion is far more honest than something you read on a website.
Ask Your Real Estate Agent
This seems like an obvious thought; however, many people shy away from asking their agent because they have an in-house lender. Your agent should be honest enough to recommend more lenders than just the one in-house. Lenders recommended by agents are also eager to keep those recommendations coming, which should translate to great service for you.
You will be working closely with your lender and paying them a substantial amount of money over time. It is certainly reasonable to ask questions about their services and products before committing. Arrange to meet with prospective lenders to get a feel for how you will be treated.
Consider a Broker
Sometimes it is impossible to do all the heavy lifting of finding a mortgage lender alone. A broker could help with your search by arranging meetings, researching the background of a lender, and finding great rates. Keep in mind that many brokers have a selection of preferred lenders and receive income from making the connection.
Finding a mortgage lender is one of the most challenging aspects of purchasing a home. There are so many options available and new lenders are hitting the market each day. Do your research and follow these five tips to ensure you choose the right mortgage lender for you.