Tips for finding the right lender
The most important part of the home buying process is financing. Figuring out how much you can afford and getting pre-approved are usually the first steps you take before you start looking for a home. So how do you know you are working with the right lender? When making the biggest financial decision of your life, you want to make sure your mortgage is in good hands.
Almost any lender can tell you how much you can borrow and at what rate, but for most people the most important factor is personalized and reliable service. One of the best ways to start research is to ask your friends and family for references. Your real estate agent can also give you recommendations on expert local mortgage companies they have worked with successfully.
Once you have a few options, contact each of the candidates and “interview them”. Remember, you don’t have to apply for a loan just to sit down with a lender and ask questions. Talking throughout the process, on the phone or face to face, can help you find the right professional for you.
Once you’ve set a time to speak with a mortgage expert, FreddieMac suggests you ask the following questions:
- Can the lender explain the different types of loans and loan terms available in clear and understandable language? Did the clients who referred the lender find their responses satisfactory? When you speak with the lender, do you understand their explanations?
- Will they give you a single point of contact for help or support anytime during the process?
- Will the lender provide regular updates letting you know where your request is at any given time?
- Will they require paper documents – like two-year tax returns or recent pay stubs – or will they accept them electronically once you sign the appropriate release forms?
- Will they take the time to let you know that they have received the information you sent? Will they tell you when it was received by the appropriate third party?
Before making a final decision, you can also check with your local Better Business Bureau and the Consumer Financial Protection Bureau if there are any consumer complaints against the companies you have selected. You can also check a lender’s reputation with the local chamber of commerce and check online valuation sites for company valuations.
Also, beware of online offers. With so much going on on the internet today, it’s easy to get tempted by fancy advertisements for low interest rates and lower closing costs. Daily life and the worry of face-to-face meetings can also make online mortgage shopping much easier. However, there are a lot of uncertainties with an online lender, so be sure to do your due diligence. Many local REAL ESTATE AGENTS suggest using a recognizable local lender who can provide you with personalized and trusted service. Many agents also say that when you’re ready to submit an offer, sometimes having a recognizable local lender can give you an edge.
If you are considering buying your first home and want more information, visit the Greater Lansing Association of REALTOR® website at www.lansing-realestate.com to find a listing of real estate agents and professionals in the real estate industry. mortgage credit in the region.