How To Pick A Mortgage Lender
Knowing how to pick a mortgage lender is just as important as finding a great mortgage interest rate. While the two go hand in hand, there are many other important factors that need to be considered when picking a mortgage lender. You will need to have a good relationship with the lender in order to have the mortgage process move along swiftly and smoothly.
- Does the mortgage lender have a good reputation? Naturally, the best way to learn about a lender is to hear from family members and friends who have had first hand experience. A personal recommendation is always better than searching blindly and taking your chances. You should also contact the better business bureau and chamber of commerce to verify their reputation and status.
- What type of customer service do they provide? You will be working with the mortgage lender for quite some time. It is imperative that you get all of your questions answered quickly and completely. Make sure your calls are returned in a reasonable amount of time and that you do not feel pressured in any way.
- Did the mortgage lender explain all options? Not only should the lender explain the types of mortgages that are available to you, but the lender should also go over the good faith estimate and give you an idea of the total closing costs in advance. If a lender is not willing to go over all the options and explain fees and additional costs at the beginning of the process, you should continue to look for a different lender.
- Does the lender keep the mortgage or sell it? It can be a hassle to have your loan sold even though it is a common practice. Find out if your future mortgage may be sold. If so, ask if the original lender will continue to service the loan? Some people do not mind having their mortgage sold, while others prefer that the loan remain with the original lender for the entirety of the mortgage.