Choosing a Good Lender

With all the information concerning the home buying and mortgage processes, how can a buyer be sure that they are working with the right lender? There are numerous choices.

How does the company function?

People may be troubled when they find out where their loan is processed or underwritten, or where the appraiser is coming from. It is important to work with a company that understands the differences of a local market. Asking questions up front can save headaches down the road.

The kind of company is it?

There are banks and credit unions, mortgage brokers, and mortgage bankers. Mortgage brokers have been constrained by many of the recent regulatory changes and typically lack the actual ability to approve a loan. Banks are usually limited in program choices and restricted by tighter underwriting standards. Mortgage bankers have the financial stability and direct lending capability of a bank coupled with the wide product selection and expertise of the mortgage broker.

Individual loan officer?

Your relationship with your Lender can become the most important component to a successful real estate transaction. How well they educate you about the process, the requirements and the factors that determine your approval or the interest rate should be considered.  Many lenders are want your business, but lack follow up or clear communication. This may be difficult to determine which is why referrals from other people or your real estate agent have far more value in determining a good lender.

Far too many people stay focused on quoted rates and fees and ignore the whole picture of what is required in a good lender. Look for good communication, greater information and education, better understanding of the local market, and someone who looks at your application as something more than a number. Be prepared to pay a little more to get a better experience, since in the end, you will be glad you did

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