Find the Right Mortgage Lender for Your Family
By B Plunkett
Most people think that the lender that can give the customer the lowest rate is the best one to go with. And the upfront/final costs and current interest rates available to you the customer should definitely play a part in your decision. However, the three items above can be as important or more important when actually deciding upon a lender.
First, how long has your prospective lender been in business? We should realize that all companies start from the beginning at some point, but a new company is going to have growing pains. Is it a company that just moved to town? If so, will they know the proper people to pull together to complete your loan? There are many behind-the-scenes people involved in each mortgage. Do you really want to be the one to help the company get off of its feet?
Second, is the lender going to be able to make you a priority as a customer? Most people going through the mortgage process know it usually takes a little time to gather all the information needed to complete the loan process. And during this time, you will want your lender to keep you informed of where the process is at any given time and how much longer will it take to complete. If your prospective lender seems overworked, that would be a good sign that your needs may not be a priority to this particular loan company.
Third, just how credible is the loan company you are reviewing? Is the company willing to do anything to close a mortgage loan? There are rules that each person seeking a mortgage should follow regarding their debt-to-income ratio. Is your lender telling you that you can afford more house than YOU know you can handle? A lot of people have gotten into trouble lately with ARM's and/or interest-only loans that really were not feasible instruments for those families. Or maybe the lender did not take the time necessary to educate the prospective mortgage client. If the lender seems more interested in closing the deal than making sure your needs are met, you shouldn't definitely question their credibility as a lender.
As you go through the mortgage process, remember these three very important questions. Ask your lender as many questions as you feel necessary, and always make sure you understand each piece of paper you are signing.