When choosing the right mortgage lender or broker you are looking for someone who is trustworthy and someone you feel comfortable with. This way you will feel confident that your mortgage loan is in good hands. Remember that it’s your money on the line; the last thing you want is to have a less than honest lender use your lack of experience against you and cost you thousands of dollars and your home. The more knowledge and awareness you bring to the table, the better your chances are of securing a loan that’s to your advantage.
Before choosing a lender it is important to know what kind of loan you’re looking for. You will save the most money by getting the right type of loan for your lifestyle. Know your situation and how much you can afford each month. Since all lenders don’t offer the same types of loans; if you have an estimate of what you can afford, that is a good starting point when choosing a lender.
Another good place to start is http://bankrate.com.
Competition is tough in the mortgage business and loans are sold, not bought. What does that mean to you? This means that lenders will try hard to get you to buy your loan through them. Since they have incentives to get you to buy from them they may package a loan to make it seem extremely attractive. These types of loans may help the lender get a bigger commission, but they won’t help you save on your overall payments.
Some mortgage lenders and brokers also have a “one size fits all” attitude and market a loan that works best for their company. They try to convince borrowers that the loan they are “selling” perfectly suits them. The problem with that is; they tell everyone the same thing even though everyone’s circumstances are different. For example, the goals and expenses of a first-time homebuyer will be very different from that of a retired homebuyer. So with a one-size-fits-all approach, either the first- time homebuyer or the retiree will not get the best loan for their circumstances. Usually lenders have other loans to offer besides the one they are “selling,” but unless you know the type of loan you need, you could end up with a loan that sounds good, but in reality it only benefits the lender.
It is important to understand that there are different types of lenders. Some lenders sell only their own products while others will broker any product that fits their client’s needs. Basically it comes down to which type of lender you prefer, there is no exact way to determine which one is right for you. But it is very important to find the lender who is willing to find a loan that fits your needs, not theirs.
But it is very important that you know before looking for a lender, that you have many options. You should find a lender who is able and willing to give you a loan that fits your specific financial circumstances. They should be willing to get your loan approved with the best possible terms available for your situation.
A good lender will be familiar with all of the available loans options and will take the time to help you decide what kind of loan would be best for you. An experienced lender will understand the reasons you may have a lower credit score or why you’re not able to put down a large down payment as a first-time homebuyer.