Mortgage Lenders
It often seems much easier (and more fun) to find your dream home than it is to choose the mortgage lender who is right for you. However, this decision is likely to impact not only your bottom line, but how much you enjoy your new home. That's why it's important to put just as much time in choosing a mortgage lender as you will touring homes and imagining a wonderful new interior of paint.
What is a Mortgage Lender?
A mortgage lender should not be confused with a mortgage broker. The
lender is the actual firm who provides the money necessary for closing the
sale. They are the ones that hold your title and require monthly payments
until the loan is paid off. Mortgage brokers, on the other hand, are
independent contractors who shop around for a lender for you and process
your information and paperwork. They pass off all the responsibility to the
lender once the deal is sealed.
There are two types of mortgage lenders: retail lenders and wholesale lenders. Retail mortgage lenders offer loans directly to consumers, without the use of mortgage brokers. Wholesale lenders work closely with mortgage brokers.
What to Look for in a Mortgage Lender:
Great Communication:
Find a mortgage lender with loan officers who welcome telephone calls and questions - even during non-business hours. Buying a home is a large, lengthy process, and you want to make sure that you have someone on hand with whom to discuss all your options, no matter what day of the week it is.
Local Lenders:
Because each state and even county is different as far as taxes,
appraisals, and fees go, a local mortgage lender is likely to have better
knowledge of your specific issues.
Independence:
Although listening to recommendations is a great idea, try to avoid using
mortgage lenders who are forced on you by your real estate agent. Agents
might not always have your bets interests at heart.
A Good History: Check with your local Chamber of Commerce or the Better Business Bureau to make sure that your mortgage lender has a satisfactory record of service.
Upfront Costs:There are many fees associated with getting a loan and buying a home. The best type of mortgage lender clearly lists what you will be paying and why.
Avoid a number of obstacles by starting off your home-buying experience correctly. Do your homework and find a mortgage lender that will work with you to get you everything you deserve for the purchase of your new home.
