How to Find the Right Mortgage Lender
Just as you usually don't buy the first home you see, you probably shouldn't go with the first mortgage lender you visit. Take your time to choose your lender carefully because you want someone who will work with you to get the loan you want promptly and hassle-free. Plus, lenders offer different rates, fees and promotions, so shopping around before you buy can help you save thousands of dollars over the life of your mortgage.
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Instructions
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List the lenders that have offices in your area. It helps to have a lender who you can speak with face-to-face to get your questions answered and get help when you need it. It also helps to be able to drop off your check in person if the due date is creeping near.
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Ask your friends, family members and real estate agent for recommendations and for lenders to avoid. It can sometimes be hard to tell if a lender is good unless you have worked with it for a while. Add potential lenders to your preliminary list or cross off ones that got bad recommendations.
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Visit the website for each lender on your list. You want a site that is easy to navigate so you can access your mortgage information online anytime. Look to see whether it has a feature that lets you pay bills online. However, be aware that any lender can sell your mortgage to another company, so you might not always get to pay your bills with the lender you choose.
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Ask for quotes on rates, points and fees from each potential lender. Also ask for an estimate of closing costs. Have the lender go over the results with you. Ask a few questions, even if you don't really have any, and see whether the lender gives a thorough answer.
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Call each lender back the next day with another question. Note whether the lender was prompt, detailed and informative with responses. If the lender did not take much time with you, this means it might be busy or might not value your business.
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Tips & Warnings
Brokers can gather quotes from a few lenders and make recommendations. However, some brokers recommend based on the commissions they will receive, not the choice that is best for you. Therefore, be careful if you decide to go through a broker. It is often cheaper and more secure to do the work yourself.
