What do you look for in a mortgage lender? It can be overwhelming at best.
When it’s time to pick a mortgage lender, you might feel overwhelmed by all the options. The first person you reach at any institution is a salesperson. They can make it sound as if they have the best deal. But is it a fit for you?
Don’t randomly select a lender. Ask your friends and family for recommendations. They will share the company they used for their mortgage. To get more help, ask a financial advisor or your realtor for a list of referrals. Realtors, in particular, usually have a lender they like to work with. You can often benefit from that established relationship. However, keep you in mind that you are not obligated to use their choice.
One thing many people may not realize is that the majority of financial institutions sell their mortgage loans in a portfolio. That means your main concern should be the party who is servicing your loan. This is the person handling your file, collecting your documentation and answering your questions. If this is work is outsourced, it can add a layer of hassle and make it more difficult to have a simple, seamless experience.
All potential borrowers should take detailed notes when interviewing prospective lenders. All lenders should be able to email you important documents upon completion of a full loan application.
Once you have visited with a few potential lenders, review your notes. You need to also review the fine print. Don’t base your decision solely on the interest rate offered. Take a close look at the fees. This is where you will most often find the hidden costs.
Some of the questions you should ask yourself include:
- How comfortable do you feel with this lender?
- Are you confident that they have your best interest in mind?
- What is their response rate?
- Do they welcome questions?
- Are they able to clearly answer your questions to you understand?
If the answer to any of these questions is no, keep looking. With so many mortgage lenders in the market, be discerning. You have options.
Check out all of our posts in our home buying and selling series!
The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.