How to Pick your Lender for your First Home or Refinancing
You are buying a home and you want to make sure you are getting the most house for your money. You need a lender who will give you a loan that you can manage at a rate you can afford. Its not an easy task and it is a risk, because the lender that you choose can make or break you with the recommendations and loan program that he or she recommends. You need to know the basic concepts of lending and what you need before you decide on what type and which lender to go with.
Make sure you check what types of loans various lending institutions offer. Have loan officers go over various programs with you point by point, so that you know the right loan that will fit your financial needs and give you the most benefits. Not only should you know about loan types, you should also be clear about all the extra fees that are attached to loans and what this means to you and your circumstances. Ask about important incidentals like pre-payment penalties and rate locks that could be attached to the loan you assume.
Have the lender explain to you the benefits of the loan he or she is trying to sell you. Ask about discount points that can be added to your loan and lender guarantees. These perks will help lower your loan rate and give you more credit. You want to benefit from the loan you are taking on and not be penalized for any aspects that you are not aware of. If an interest rate seems to high, question it and ask how you and the lender can bring the interest rate down. Don't settle for the first option offered. Always be ready and willing to explore many possibilities.
Remember that you are the one assuming the responsibility for the loan, so you need to make sure that you get exactly what you want and what you can afford. Have a list of questions ready and listen to every option made available to you. If you don't like what you hear, then go to another lender, or several if you have to, to get the satisfaction you deserve. Be confident, even if this is your first home buying experience. If you act like you know what you want because you've done your research, most likely you will get what you want.
ABOUT THE AUTHOR:
Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com
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