Sometimes, I have to chuckle when I look and see how our society makes the decisions that we do.  When we get sick, we go see a doctor who has spent a good portion of his life in school training for his career.  When we need an attorney we seek out only the best and look for law firms with a great proven track record.  If we are investing our money into the stock market, we seek out professionals or insiders who understand how to protect our money for our retirement.  But, for some reason when we decide to spend hundreds of thousands of dollars on a home, this common sense approach to business is thrown out the door.  Some of us end up making poor decisions on mortgage loans and working with sub-standard lenders who will cost us more money in the long run.  I think I know why this happens.  Going to a doctor is clinical.  Going to an attorney is required when in trouble.  Seeking out a great investment planner is a necessity if we are going to retire some day.  However buying a home is EMOTIONAL.

When we allow our emotions make bad decisions for us, usually we take the chance of being burned.  Its no different then if you ever had to plan an unexpected funeral.  So many decisions have to be made and you are really not in the right state of mind to make the correct ones.  So guess what,  we ended up buying the nicest and most expensive funeral for Aunt Lilly that money could buy.

I believe this is exactly the same thing that happens when most of us buy a home.  So What I want to share is some basic things you can do to help choose a Trustworthy Lender and not get burned.  The last thing I want is to hear another horror story from someone that got screwed on their mortgage and is now paying the ultimate price "Foreclosure".

If we now know that buying a home is emotional, and the services we need to buy a home will be based on emotions, then the first thing we need to do is distance ourselves from the emotion part "The Home".  So first and foremost, before you ever think of looking at any homes, we must get the financing piece out of the way first. 

Here are the steps to choosing a trustworthy mortgage lender:

• Step 1:  Do a monthly budget:  Most clients have no idea how much money they can afford in a payment.  By doing a monthly budget, you can see how much money you "the customer" are willing to spend each month on a  mortgage payment and stick to your instincts.  One of the first questions, I ask a client when we talk is "How much are you comfortable in spending on a payment".  Remember, after the paperwork is signed for the loan, your lender is not going to make that payment for you.  You will want to make sure you can make that payment.
• Step 2:  Seek out an expert for your unique situation:  If your buying your first home, seek out a lender who specializes with 1st time home-buyers.  If your buying an investment property, seek out a mortgage lender who can help you maximize your investment dollar.
• Step 3:  Do not choose the lender based on the cheapest rate and fee structure:  The old adage "you get what you pay for" is very true in the mortgage business.  Most of the best mortgage professionals, will come highly recommended and want a little higher premium for their services.  This does not mean that they cannot offer you a great rate and fee structure, it just means that they do not work for free.  Good mortgage professionals will be worth their price in gold.  Your goal at the end of the day is to choose the correct mortgage product for your unique situation.  The last thing you want to do is spend more money later having to refinance your loan because the wrong product was chosen upfront.  Those costs add up over time. 
• Step 4:  Stay away from Mortgage Gimmicks:  Again, "if it sounds to good to be true", this is probably a mortgage gimmick.  Those 1%, 2% mortgage rates are just that, they are a gimmick.  If you heard on the news last night that rates are around 6.5% and someone advertises a 4% rate, then its a mortgage gimmick.  Remember all lenders basically sell the same products and go to the same sources to get the money for mortgage loans.  Furthermore, this is no such thing as a "Free" loan.  We hear mortgage lenders advertise all the time of no closing costs.  This is a mortgage gimmick.  All they are doing is charging you a higher rate and getting paid by the bank for selling you a more expensive mortgage loan.  Last, if a mortgage lender is running a lot of slick commercials on TV or radio, then be aware that there is a cost built into your loan to pay for those marketing costs.  Just because they advertise low rates, does not mean you will get one.
• Step 5:  Get a personal referral for 2-3 mortgage lenders:  Hear is one of the easiest ways to end up working with a trustworthy mortgage lender.  Write a list of 4-5 people you personally know in your life who has always been great with their money and ask them if they know of a great mortgage lender.  People who are good with their money seek out these type of professionals, that's why they are good with money.
• Step 6:  Interview the mortgage lenders and ask a lot of questions:  Let the mortgage lenders know upfront that you are interviewing them for their services.  DO NOT tell them your shopping them.  Remember, its not about rate and fees right now, its about choosing the right person.  Ask them for personal references.  Ask them how long they been providing their services, ask them how much they like their job.  These 2 questions will tell you a lot about their character.  Ask them about the areas they specialize in.  Ask them how they communicate with their clients and ask them about value added services.  Ask them about the costs of doing the loan, and which programs would be best for you.  Then tell them your unique situation.  Let them know you want to stay in a certain budget and payment.
• Step 7:  Take action choose the right lender:  By this time, you have decided which lender will be best for you.  Let that person know that you would like to work with them to get approved for a home loan.  Let them take your loan application and work on getting you approved. 

Now that you hired the right mortgage lender, you can go back to focusing on the emotional side of things "The Home".

We are unique people out there.  We expect better then "would you like fries with that drink".  I just have learned to use my Midwest values and transfer them into my mortgage business.  If you are looking for something a little more unique in your next mortgage loan, please do not hesitate to get a hold of me. 

My name is Gary Miljour and this is what I do best.