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What Mortgage Lender is Right for Me?
Lowest Price may not Always the Best!
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RealEstateBuySellExchange.com has provided the
information below to give our readers the opportunity to
review the lending options existing today. |
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RealEstateBuySellExchange.com does not participate in
loans, mortgages, commission on any transaction conducted
from this web site.
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Most people consider the best lender is the
one that gives them the lowest rate that may not always be true. Everyone
is conscious of getting the best price, but what about integrity,
efficiency, compatibility, and can the lender be trusted?
Whether dealing with a bank, mortgage broker,
savings and loan, or a credit union, technically speaking there is very
little difference when it comes to competitiveness of their loan rates.
The real difference is their service and how they provide that service.
We feel the best way to search for a Lender is a
multi step process. First, we suggest talking to all friends, relatives,
work associates and anyone else you respect their opinion who may have
recently had anything to do with a lending institute. Find out if they had
a good or bad experience and how or why it happened.
Second step is to take a few hours, make some calls
and visit various local offices of lending institutions. Gather their
information, find out not only their interest rates but ask about their
origination points, fees, closing costs, any hidden costs, down payment
needs and what paperwork they will require.
Third, if these people are not helpful on your first
fact finding expedition, then I doubt that is the company you want to try
and borrow thousands or millions. Yes, you may be dealing with a major
lending institution, but the fact is your interaction will be with the
loan officer and their assistants rather than the CEO. If gathering
initial information is a hassle, then just imagine what headaches await
when you want to borrow thousands or millions.
Fourth item we look for is a match between the
turnaround time with regards to the overall loan. One institute might have
a slightly lower price, but if it takes them weeks more to return a
response to your loan, what good is the lower rate? Again, we agree the
interest rate on the loan is a primary interest to most, but what happens
to that dream home if the institute you are working with cannot meet the
deadline?
Fifth item we suggest is a full examination into
selecting a Lender are their other options. What we mean exactly is, does
the Lender offer you other possible alternatives to give a selection of
loans to choose from? Lending institutions are no different from any other
business, sometimes when they get overloaded in a particular item they
make other products more attractive to balance out their portfolio. For
example, you may be in the market for a 15-year loan, but if the rates for
a 20 or 30 year loans are more desirable then take the longer note and
save money. You can always use one of our online mortgage calculators and
determine the payout needed each month to fulfill your 20 or 30-year note
in 15 years.
Sixth and final item of selecting the Lender is
their ability to give a pre qualified status and a pre approved status of
your future loan. Being pre qualified means a loan officer has taken some
information from you, calculated a debt ratio and gives a verbal estimate
of the approximate size of a loan you can apply for and "maybe" receive.
Pre approved means the lending institute has examined all paperwork needed
including credit report and will issue a paper stating your approved loan
amount, interest rate and how many days they will hold this option
available.
The above items are just a few of the highlights of
selecting a Lender. Since this is one of your largest purchases you will
make for you and your family, take time and do your homework. Being
prepared and having prior knowledge is an excellent tool in saving money
and eliminating headaches not in lending but a good rule of life. |
