The mortgage lender you choose is just as crucial to the home buying process and the loan itself.
Consider that your relationship with a mortgage lender will last anywhere from 15 to 30 years.
From that perspective, it only makes sense to shop around for a lender that you can work with for that length of time.
Factors to Consider
National mortgage lenders are often better sources of funds than local lenders. With a national lender you often find diversity in the products offered as well as advanced funding capability.
While the costs of the loan are important, choosing a mortgage lender is about more than just the money.
The lender’s reputation is another factor that you should take into account when choosing a mortgage lender.
The length of time the lender has been in business will give you an indication of their reputation.
You should also check with the Better Business Bureau to see if the lender has any complaints against it.
If you are considering a national lender that operates in multiple states, make sure to check the status of that lender with the BBB in other states.
Asking your family and friends for the name of the mortgage lender they use is another way to find reputable lenders for your mortgage.
The financial aspect of your decision for a specific mortgage lender should be based on the closing costs and interest rates. When you speak with a lender, ask for details on the closing costs and rates of the loan. Make sure to find out how many points you are being charged. The points are the amount you pay for the loan and are a percentage of the amount you borrow. Your goal is to minimize the extra costs of the loan as much as possible.
Lenders to Avoid