Buying a home is the biggest purchase most of us will ever make in our lives. You want to be sure that you’re dealing with a mortgage lender that is working for you. Here are 10 tips for choosing the right mortgage lender for your big purchase.
Presence in the Community: If your mortgage lender some new kid on the block? While teaser rates and low initial payments are like Heaven to the young inexperienced homebuyer you want to be sure that your mortgage lender has something of a track record within the community so that you’re not left holding the bag after your teaser periods are over.
Have Your Interests First, Always: This goes without saying; look deep into the back pocket of your mortgage lender; are they somehow affiliated with someone else who would present a conflict of interest? Make sure that your mortgage lender has your interests first and that all snafus are brought out into the open.
Be Accessible: Is your mortgage lender even around? If you’re getting voice mail and answering service maybe it’s time to find a new mortgage lender.
Be Clear: Is your mortgage lender speaking in language you can understand? Are the terms of your mortgage clear? Are you getting the whole story? Before you sign anything with anyone you should know what you’re signing on for; so it goes with your mortgage lender; they should be clear.
Be Able to Offer You Multiple Scenarios: If you’re a 22 year old single guy buying your first home your needs are going to be more fluid than, say, an 83 year old single retiree. You should make sure that your mortgage lender can explain to you why your mortgage is best for your situation and, if you disagree, should be able to show you alternatives. If your mortgage lender is locked into one mindset, you could be dealing with the wrong lender.
Be Able to Offer Great Rates: Are you getting a comparably good rate from your mortgage lender? Know what others are getting in your area and shop around! You’re going to be paying this purchase off (still) in 30 years; why not know what you’re paying for.
Be Accredited: Is your mortgage lender locally accredited? Make sure that your mortgage lender passes all the hoops you’ve put up so that you’re dealing with someone who’s got organizations and groups at their back.
Better Business Bureau: Of course making sure that your mortgage lender is a member of and is not in any violation of the Better Business Bureau is crucial. If there are outstanding violations from the Better Business Bureau, they should be easy enough to find and judge for yourself.
Be Wary of Online Mortgages With Outrageously Low Rates: Online mortgage lenders have to pass the smell test before you should deal with any of them. Obviously they’re not going to pass the first of these metrics about being a presence in the community because of the relative youth of the internet. However there are still some online lenders who have made a good name for themselves; just be wary.
Be Independent of Your Real Estate Agent: If your real estate agent is pushing you into one mortgage lender or another, you may want to watch out for that. This can lead to potential problems down the road with unexplained terms, fees, and other things. It’s generally best to keep the agent and the mortgage broker separate.
Making sure you’re getting the best rate and that you’re being taken care of are all important when you’re choosing a mortgage lender. If you follow these ten steps you should be able to find a mortgage lender who is fair, clear, and won’t give you the run around in your home buying experience.