Tips on Getting a Good Mortage Lender

The first thing that crosses my mind when looking for a mortgage is interest rates. However, there are other factors that I usually consider before settling on a particular company. Typically, most lenders have a similar mortgage application process. The difference lies in the fees charged and the service offered.

 

Types of Mortgage Lenders

There is a wide range of companies that can offer me a mortgage. They include my local savings bank to an online lender. The following is a list of some potential lenders:

 

Conventional Banks

Conventional banks offer mortgage loans as part of their services. Once I apply, either in person or online, I might be assigned an officer to help in processing the loan. This is ideal particularly when I want personalized service.

 

Mortgage Brokers

A mortgage broker comes in handy when I need a mortgage amid a tight schedule. They will search multiple lenders and zero down to the best loan option that meets my needs. Still, they will act as an intermediary between the lender and me, gathering crucial documents and availing them to the underwriter.

 

Nonbank Mortgage Lenders

Some companies offer mortgages exclusively as an online service. A major advantage of these types of lenders is speed because their brand is built on quick loan turnaround. Besides, they can readily offer me a loan if my credit history is not good, a sharp contrast to conventional banks which will hesitate.

 

Credit Unions

Credit unions, like banks, offer a large variety of financial services including mortgages, as well as checking and savings accounts. However, for me to qualify for a mortgage from a union, I must be a registered member, and maybe residing within a particular geographic zone, or work for government and companies that have links to the specific credit union.

 

Finding the Best Lender From the Rest

The best place to start my mortgage loan search is the credit unions and banks where my accounts are. As a customer, I have high chances of getting special rates and fees. An online search is also likely to give me critical information about a lender like the ratings.

 

Preparation

There are several ways through which I can prepare for my mortgage application. These include:

 

  • check and ensuring that my credit score is good. I can achieve this by making payments on time, paying off credit balances, and avoiding taking out loans.
  • Having a stable income: Credible lenders will need to know if I can afford to pay the monthly installments.

Probing the Mortgage Lender

There are certain questions that I need to ask the mortgage lender before I sign the agreement. They include:

 

  • The duration that the process will take
  • The key contact person after signing the agreement
  • Whether the engagement thereafter will be in person or online
  • The length of the interest rate lock

Furthermore, there are questions that I should ask if I decide to engage a mortgage broker. Some of them are as follows:

 

  • The number of lender quotes that the broker reviewed
  • The kind  of fees and commissions charged, and who will settle them

Comparing Mortgage Loan Offers

Before I decide on the lender to work with, it’s always prudent to compare fees and interest rates offered by at least three choices. Although the interest rate is important to look at, I always keep in mind that rates change daily.

 

Fees is also crucial when choosing a lender. Whereas some lenders list the fees individually, others put them together, which may not be easy to understand. I thus take time to ask everything, from application fees to underwriting costs.

 

Insurance and Down Payment

In as much as I put money on my mortgage loan, I also make sure that I save for unexpected occurrences. Therefore, I opt for loans that do put many dents on my savings.