4 Steps to Choosing a Good Mortgage Lender
Choosing a mortgage lender is one of the tough decisions you’ll be faced with when thinking about your home. Today’s market is flooded with countless mortgage loon lenders ready to approve your application. However, a lender accepting your application doesn’t make them your best choice. Considering that a mortgage is a commitment that could span a decade or so, it’s important that you find the best lender for your needs. The tips below should help you make a more informed decision.
Consider hiring a mortgage broker
You can either work with a mortgage broker or go it alone. There are a few payoffs to working with a broker, such as the amount of time and effort they’ll save you in hunting for the best mortgage loans. A broker knows their way around the industry and can recommend the right option for your needs.
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Be wary though of brokers motivated by profit. Some brokers will recommend a company that pays them huge commissions, most likely at your expense. Do your homework first to avoid disappointment if you decide to hire a broker.
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What type of lender do you need?
You’ll have to decide who you’d prefer between a small lender and a large one. A small lender is your best pick if you’re the type of person who likes personalized treatment. The customer service agents will likely know you well and call you by your name, and they’ll be on hand to offer assistance when issues arise. Don’t take this as a generalization that large lenders can’t offer great customer service though–you may have to find out for yourself.
A larger lender generally is the right pick if you’re looking for the lowest interest rate. It’s however not advisable to base your decision based purely on interest rates offered. Remember that a number of factors are at play here–researching the differences between large and small lenders can help you make the right decision.
Ask for recommendations
You don’t necessarily need a broker to find the best mortgage loans company. Oftentimes, some of the best purchases we make result from recommendations provided by friends, coworkers or family members who walked that path. Ensure you can can trust the opinion of the person recommending you a lender.
Research reputation of lender
It’s easy these days to do a background check on a potential lender, thanks to the web. This is a good step to take even if someone has recommended one of more companies. Spend some time going through online reviews, and pay attention to any complaints/concerns raised. Knowing as much as there is to know about your prospective lenders can spare you some major headaches in the future.