If you’re shopping for a home, then you’ll need to figure out how to finance it – which is where finding the right mortgage lender is essential.
You’re likely going to be working with your lender for decades, so you need someone that you trust.
There are endless options when it comes to mortgage lenders, which is why it’s crucial that you do your due diligence to find the right one. Take time to meet with different lenders and interview them to get a feel for who they are and how they will work with you. Don’t rely on a simple Google search and instead, consider these essential questions before you choose a mortgage lender. And make sure you compare interest rates out there:
What’s Their Reputation?
Ask around, read online reviews, and try to get feedback from other borrowers who have worked with a lender you are considering. Referrals from friends, family, and others can go a long way towards finding someone you trust.
If you are already working with a real estate agent, ask them for recommendations – they want you to be happily settled in your home, not anxious about your loan.
Do They Offer The Loan Type You Need?
If you’re looking for an FHA loan but your prospective lender only offers conventional loans, it’s time to find someone new. Not all lenders offer the same loan types or even the same loan terms.
Get on the phone or down to a prospective lender’s office and start asking them questions about their loan options. If they don’t offer you a range of available programs and don’t ask you questions about your specific circumstances, they probably won’t give you the support you need down the road. For example, if you are refinancing your home, some lenders may not be offering this type of home loan, or they may have different rates. Choosing the right lender and loan may mean thousand of dollars in savings for you:
Are They Local Or National?
Do you want to be able to stop by your lender’s office during the life of your loan, or do you prefer to handle everything virtually? Proximity to a lender’s branch or office isn’t required, but it will indicate that the lender is involved in and knowledgeable about your specific market. National lenders, on the other hand, may offer easy application processes and possibly even slightly better terms, but you run the risk of becoming just another name on the books as opposed to an active partner in home ownership.
How Do Their Rates Compare With Other Lenders?
Ultimately, you want to get the best mortgage interest rates and loan terms for your situation. Compare rates among multiple lenders so you can get a feel for any differences – you won’t know what the best option is until you check around.
What Fees Will You Be Responsible For?
The down payment isn’t the only upfront cost of your mortgage; you’ll also be responsible for origination fees and other costs to secure the loan. As you survey offerings and rates from different lenders, make sure you are checking the fine print, so you know about any additional costs.
Ready to find the lender and loan type that’s right for you? Check mortgage interest rates from available lenders and take the next step towards home-ownership.