After the recent crisis in the mortgage industry, consumers are rightly concerned about the lender they choose to handle their own mortgage loans. Fear of schemes, scams, and con men have driven consumers to be more astute at selecting a lender. This is good news for everyone involved and with more consumers checking out lenders before making a commitment, the mortgage world can be a safer place.
Selecting the right lender for you is not as impossible as you may think. Here are some tips for finding the lender who will meet your needs and see you successfully through the mortgage loan process:
Be Prepared
Rushing through the process of finding a good lender with the right mortgage loan for you is the biggest mistake you can make. By understanding first-hand where your credit score lies and knowing what answers you need to find, you can conduct a more thorough search for the perfect lender. Get your facts together and know what kind of loan you are looking for, what price range you are considering, and how fast you want to act. Never be in a hurry to get a mortgage loan because the mistakes you can make in a rush will cost you financially.
Get Reputable Referrals
If you are already involved with a realtor, this is a prime place to start. Ask your realtor for lender referrals. Since they are in the business of selling houses, there is a good chance they know just the right person. You can also solicit referrals from friends, family, and co-workers who may be familiar with mortgage lending companies.
Search Online
The Internet provides a wealth of information but in some cases, it can be information overload. If you choose to conduct an online search for lenders, be cautious about the data you uncover. Start looking locally before making online inquiries or you run the risk of being junk mailed to death with offers. There are also several websites that promise banks knocking down your door for your business if you just answer a few questions. Proceed again with caution. Select a few potential lenders that might be a fit and then stop looking for now.
Background Check Lenders
Again, with technology there is a wealth of information to be found but you have to take it with a grain of salt and do some of your own legwork. Contact lenders directly by phone to discuss your situation and what you are looking for in a mortgage. Make a list of questions you’d like to ask them in person. Find out about the APR, closing costs, application fees, credit score requirements, and other financial data. Once you have interviewed several lenders and none seem to be a good fit, conduct another search and interview process.
Head to the BBB
The Better Business Bureau can provide you with the information that may help define your decision. The A+ to F rating system and the complaint listings for mortgage lenders will appear right on the site. You can scroll through the BBB’s website for feedback on the companies you are researching.
Get With Your Gut
A consumer’s gut instinct is often right on target. If you have interviewed with a high-pressured sales pitch from a lender or some of the conversation just didn’t sit right with you, take your own feelings into consideration. Armed with self-confidence and knowledge, you’ll make a better decision about your mortgage choices.
