A house is one of the most expensive and important things you will buy and invest in during your life. So, it's very important to choose a lender with a good reputation and with whom you feel comfortable.
Know that mortgage lenders are also interested in your loan. This may help you feel a little better. The last thing they want is to have to take your house back through foreclosure. They want you to do well so that you can pay your bills every month. A good lender will work with you to find the best loan for you.
Look for lenders who are well-known and who know your market, and don't forget to ask questions. The lender needs to be able to talk to people and get along with them. Set up meetings with a few different lenders to see what it would be like to work with them. When you talk to the lender, make sure they can give you the loan by the time you need it. A lender should also be open and willing to answer your questions.
When looking for a good lender, here are some tips and things to think about:
Get some recommendations. Ask your family, friends, and real estate agent who they would recommend and who they may have worked with before.
- Does the loan officer seem professional, well-organized, and knowledgeable when you meet them?
Find out if the lender is a member of any groups, such as the Better Business Bureau, the Chamber of Commerce, the Mortgage Lender's Association, etc., and if so, which ones.
- Did the lender give you a Truth-In-Lending Disclosure and a Good Faith Estimate? Legally, you should get this paperwork within three days of sending in your application.
- Does the lender give you options to help with the down payment and/or closing costs?
- Ask the lender how you will be able to get in touch with them during the loan process.
What are the costs of the contract, such as closing costs and so on?
Have you been given copies of everything you've signed by the lender?
Did the lender tell you exactly what you need to bring with you to sign the loan application?
- Does the lender want you to sign a Borrower/Broker Contract? RUN if they do. You don't want to work with a broker who wants you to do that.
You need to find a lender you can trust. If you still have questions after the interviews, you can ask for references and talk to those people. You are making a big choice, and you should be able to get all the information you need and want.
Once you feel comfortable with a mortgage lender, talk to them about how to set up your mortgage in the best way for you. Once you've been given offers for different kinds of loans, you should talk to other mortgage companies and compare their rates to the ones you've been given. And make sure you always get written estimates!
Remember that the best mortgage for you will depend on a number of things. Before you sign any contracts, you should think about your current financial situation, how and if you think it will change, how long you plan to keep your house, and how comfortable you are with the possibility that your mortgage payment will change.
Also, remember that information gives you power, and the more you research and explore, the better off you will be in the long run. Make sure you are happy with the lender you choose because you want someone who will be there for you if you have questions even after you close on your loan.
