If you want to buy a house or refinance your current mortgage, one of the first things you will need to do is find a mortgage.
I honestly don't know how many mortgage companies there are in the United States, but I can tell you that there are a lot of them.
There are also a few different kinds of mortgage companies. One of them might be your local bank, but there are also wholesale lenders that use both their own loan officers and mortgage brokers to start mortgages. Then there are retail lenders, who only use loan officers who work for them.
The mortgage business has become very competitive because there are so many of them.
So, look again and think about shopping around before you sign up with the first lender you talk to and start filling out forms. Like I said, there is a lot of competition in the mortgage business, so let them fight over you.
When looking for a lender, you don't have to go crazy. You should not ask more than five questions. Talk to them and ask what programmes they have and how much they cost. Ask about the costs of closing. Remember that closing costs shouldn't cost more than 5% of the total loan amount at most. (The down payment is not included.)
By looking around, you'll get a sense of what's out there. The lender who gives you the best deal for your needs and budget should be the one you choose.
The problem with only talking to one lender is that you are limited to their products, services, and rates. How do you know you can't find a better deal somewhere else? You probably can.
Compare mortgages the same way you would compare cars. Look at a few of them at different dealerships, test drive them, and talk to the salesperson about the prices. Once you and the salesperson agree on a price, you can buy the car.
You shouldn't be in a hurry to buy a home or change the way you pay for it. So take your time and learn what you need to know. Talk to people in the business, do some research, and then make a decision based on what fits your needs best.
