When you've made the decision to purchase a home, one of the most important steps is finding the right mortgage lender. Your choice can greatly impact the financial aspect of your life for years to come. When it comes to making a decision, you should research lenders and shop around.
5 Helpful Tips for Choosing a Mortgage Lender
Below are 5 helpful tips you should keep in mind before making a final decision on your mortgage lender.
1. Figure Out What Kind of Lender is Right for You
If you've ever seen a mortgage ad online or on TV, then you know there is a vast difference in the types of lenders out there. From large, national brands to smaller, local, boutique lenders – the choices seem endless. Your decision greatly depends on the type of service you are looking for. You could choose a larger company that may utilize the latest tech to get you a mortgage with the push of a button or you may opt for a local lender that gives you a more personalized approach and a tailored experience based on your specific needs. Ultimately, you need to be the one who make a decision that is best for you.
2. Make a Decision About Using a Mortgage Broker
Acting as a liaison between the lender and borrower, a mortgage broker can be a major time saver in the mortgage process. By doing a large share of the work involved in finding a lender, an experienced broker can help you get the right mortgage and great rates. Good brokers are able to shop the details of your loan with several banks and lenders to get you the best deal possible.
If you ultimately decide to use a mortgage broker, make sure to do some research and get references, even if they are online reviews. Something to watch out for are brokers who set up a deal that benefits them, instead of you.
3. Ask Those Who You Trust About Different Mortgage Options
Just like with many big decisions in life, asking your trusted family members, friends or coworkers for advise may be best. Especially if they have recently acquired a mortgage, their experience may be helpful to you, even if it's NOT what to do. Individuals that have had a recent experience with specific brokers or lenders can give you their firsthand experience and advice –so ask around! If you are working with a real estate agent you can ask them as well. They often have preferred lenders that they work very closely with, and they are usually preferred for a good reason.
4. Take a Few Minutes and Do a Reputation Check
Let's face it, no matter how good a reference from a friend or colleague, you should still check out the lender for yourself. If you know of anyone who has personally used a lender, try to reach out to them and get their honest opinion of their experience. Reputable, third-party review sites are also good sources to find out about lenders, their quality of service, and their reputation. Performing this due diligence now could save you headache and money farther down the road.
5. Compare, Compare, Compare (Rates That Is)
Most every consumer will relentlessly compare the price of a good or service before they buy. It's only natural to want to pay the lowest price. The same goes for your mortgage! And because of the vast amount of lenders and brokers out there, all with different programs and rates, it is essential to compare what each has to offer. So make sure you include comparing rates as a big part of your mortgage selection process. Remember, just because the first person you reach out to you gives you an offer, doesn't mean you have to accept it. There is a lot more to choosing a lender than the finding the lowest rate, but it still matters. Choose whats best for you.
Searching online is a good place to start. Start by doing a Google search for, “best mortgage lenders in my area” or "mortgage brokers near me”. See what shows up on the first page. Do they have good reviews? Do they have a lot of reviews? Check out their website. Does it look nice and have all the information you would need? Give them a call. Do they pick up the phone? Do they call back? Sometimes the little things make all the difference in receiving quality service. No matter who you choose to help you with your mortgage needs, make sure the decision you make keeps your best interest at hand, and a good mortgage lender should do the same.