Choosing the Right Lender
July 25, 2018
In today’s competitive world, mortgage lenders will practically be ready to break your door down to represent you before someone else. However, eagerness should be regarded with caution because it is important to find the right fit in your lender. Choosing the right lender could not only create a withstanding, professional relationship but in turn also save you a lot of money down the road.
What kind of lender do you need? Are you interested in a small or large firm? This depends on customer’s preference. Whether you prefer more personal attentiveness or less attention but perhaps are better interest rate, it’s important to shop around, and talk to at least 3 different lenders to get a good sense of the person and type of lender they are. Are they prompt when responding, friendly, proactive? Do they explain processes to you or wait for you to ask before relaying information? Whatever preferences you as a customer prefer when working closely with someone is what you should also look for in your lender.
Each potential lender should provide a Loan Estimate. This required form lets you easily compare different loans from lenders. Loan Estimates are very important when comparing lenders, as they show you the details of your loan. Details including: interest rate, monthly payments, and fees, etc. While comparing loan estimates of potential lenders, look at reviews to get a feel of how they will be handling your mortgage from other customer’s point of view. You want to watch out for “junk fees” as some lenders have a tendency of slipping them in.
Real estate agent recommendations are VERY helpful, as well. A recommendation is a great way to break the ice when seeing if they are a good fit. A smart loan officer takes good care of customers recommended by real estate agents. You could perhaps get help reducing costs and a better deal.
Look at choosing a lender like choosing a car. There is shopping involved and price comparisons, but the right car salesman can make or break a deal and can provide either an easy buying experience or a nightmare for both you and your realtor.
