If you are getting ready to purchase a home, or are trying to refinance your loan, you need to make sure that you are working with the best mortgage lender. That means finding a lender who will get you a great rate, but will also make sure that you understand the process and important paperwork involved with your new loan with the least amount of stress.
With so many changes happening in the industry and the sheer number of lenders available, it can be difficult to know if you are choosing the right one. Here is our guide to choosing the right mortgage lender.
Tip #1: Ask lots of questions
The best thing you can do in the beginning is ask questions. Understand what the fees are, and if you feel as though the lender is being dishonest or not answering the questions to your satisfaction, you should probably move on to a new lender.
Tip #2: Be honest about your situation
You also need to be honest with the lender when it comes to anything that could affect your chances of getting a loan through them. It is much better to be honest with them and see if there is a way that they can help you work around the problem. As you are researching the lender, check to see what other options they have. Many lenders today have several different mortgage options and ways of helping people qualify for the loans they need.
Tip #3: Check their rates
One of the most important things to consider choosing the right lender is the rates. Check the rates of several different companies so you will be able to find the one that offers the most competitive rates. Those who have trouble with their credit will likely find that the rates they have to pay are going to be higher, but should still be able to find a lender.
Tip #4: Consider their experience
While experience isn’t the most important thing, it can be very important especially in today’s complex world. Mortgage companies who have survived and prospered through the last few years should have good experience in the industry and can use that knowledge and expertise to make sure you are getting the best loan.
Tip #5: Look for testimonials
You can check sites on the web to learn about them, or you can talk to friends and family and see if they have recommendations. If someone you know had a great and easy experience buying their house recently, ask them if they wouldn’t mind sharing the name of the lender. It can help reduce a lot of the work you would normally have to do on your search!