How to Choose a Mortgage Lender
Decide on a Budget
Before moving forward with the mortgage process you must have a clear picture of what you would like to spend. While Annual Percentage Rate (APR) can vary based on things such as employment and credit score, you should first decide what you’re comfortable taking out, putting down, and paying monthly. Many experts recommend this so you don’t get caught up in the process. By deciding what you want to pay before continuing you can better manage your money and stick only to mortgages that you can afford. Using online mortgage calculators to see what you can expect your interest to be can be helpful in figuring this out.
Contact Your Current Financial Institution
By contacting the bank you already do business with first, you might be able to save time in the process. Your current bank will already have your employment status, address and credit score on file. It doesn’t hurt to contact them and see what their mortgage rate is. If you have a good credit score, you could get the best rate right through your bank. This also makes it easy to manage your finances as everything is through one financial institution. If your bank or credit union doesn’t offer a good mortgage rate, see if they work with third party lenders.
Ask for Referrals
Many people look at online reviews to find a good mortgage service. However, these reviews never seem to tell the whole story. This is why you should rather ask friends and family members where they got a mortgage. By doing this you can find reputable companies that those in your area trust as well as avoid the ones they have trouble with. Many times different geographical areas will have vastly different rates due to the way banks operate, so those who live in your vicinity will have better information than online reviews. It’s also easier to deal with a local branch in many cases.
Talk to Your Realtor
A realtor who is either helping you buy or sell a home will have knowledge on the mortgage practices. Realtors deal with mortgages all the time and they will most likely know the best and worst providers for you. By asking your realtor who they recommend, you may find your next mortgage lender. Because a realtor is trying to sell you a home to get a commission, they can help you find the best rates to make you happy so you move forward with a purchase. Experts say that those who go through a realtor for a referral report higher satisfaction with the choice of a lender.
Consider Online Services
If you have tried all else and can’t seem to find a good lender, there are still other options. One of them is using an online mortgage lending service that will help you compare rates. These services take some of your basic information and give you dozens of quotes from mortgage providers. They will give you the estimated APR as well as basic info about the lender. Once you have this list, look at the options you can afford and contact the companies to find out more about them. Many people have found great mortgage lenders this way, so you can too.