If you are out looking for a mortgage lender to buy a house, you have probably become quite confused and worried due to the plethora of options out there. While finding a lender is not much of a problem, the real issue lies in deciding which lender to work with. Choosing a lender can be a tedious and long process which often makes many people turn to their realtors or agents for advice.
Getting a mortgage and buying a home is a huge financial decision in most people’s lives. The lender you choose will greatly influence the experience both negatively and positively.
Ask Your Realtor or Agent
Your realtor is perhaps one of the best people to ask. Real estate agents who have experience of working in the business usually have sound knowledge of various lenders and their services. They will be able to guide you about this matter in a knowledgeable manner allowing you to choose from the best lenders.
If you have friends or family in the same location as you who have recently gotten a mortgage or a loan, you can ask them for advice. Letting the word out among your connections will also help. Maybe someone knows someone who has had a good experience with a lender and they can recommend someone.
Similarly, if someone knows of someone who has had a bad experience with a lender, this will help warn you against choosing that lender.
Do Your Research Electronically
You can also search the internet for recommendations, warnings and reviews. In this day and age, it is quite difficult to get away with a bad reputation when everyone is posting reviews online. Check these reviews and then make your decision.
Call lenders and ask them for details of their services. Ask them questions about Truth-In-Lending and Good Faith Estimates and have them mail you the statements. Ask about fees and other costs associated with a lending. Find out the details about the monthly payment rates, APR, interest rates and loan programs.
Also find out how the lender will get paid. Will they use points or commission? Get them to send you their HUD-1 closing statement for their last three deals. This will help you understand how they work in a better way.
When talking to a lender, remember that they are first and foremost marketing people. They will try their best to sell their service so take notes as you talk to each and then compare and review them.
In the end, whatever lender you choose, the best one will be responsible, above board and trustworthy. So make sure you choose wisely.