Tips on Choosing the Best Lender and Shopping Around For Mortgages
Tips on Selecting the Ideal Lender & Shopping Around for Mortgages
When shopping for a home loan program, finding the ideal lender that meets your credit, financial situation and goals can make all the difference. Finding the right loan program that works with your credit, finances and goals saves time, money and stress in the long run.
Joe Zeibert, a managing director with Global Mortgage Solutions, recommends that to find the lender best suited to you it’s important to do some research. You should compare at least three lenders and ask questions about their fees and terms before making your decision, he advises.
You may be tempted to select the lender your friends and family recommend, or even one with the lowest rate. But Zeibert cautions that this may not always be your best option.
Different loan types exist, each with its own advantages and drawbacks. Before shopping for a mortgage, it’s essential to know which lenders provide competitive rates and other perks, as well as what qualities to look out for in terms of customer service.
Banks, mortgage brokers and other loan providers are the most common lenders. These businesses provide a range of mortgage products such as conventional, FHA, VA and USDA loans.
They typically offer other financial services and products, such as savings accounts, investments and insurance. Furthermore, they might provide first-time homebuyer programs or discounts for borrowers who carry large balances with them or have a good credit score.
Furthermore, they often offer more flexible mortgage terms than other lenders and possess additional in-house expertise.
Brokers have access to a wide range of lenders and can help you determine which ones are most suitable for your specific requirements. Furthermore, they provide guidance throughout the process and negotiate on your behalf, often leading to better deals than what you could have achieved on your own.
Your lender will charge you interest on the loan, as well as fees for things like lender origination fees, points and mortgage insurance premiums. These costs can add up over time so it’s essential to shop around for the best lender.
Once you’ve narrowed your search to a few lenders, begin getting quotes and estimates. Review each estimate carefully to make sure it meets both your needs and budget.
Be sure to request an itemized summary of fees from each lender. This will give you a clear picture of what to expect in terms of costs over time and allow you to determine if a lender is offering you an advantageous deal.
Comparing rates from multiple lenders on the same day can help you assess the total cost of each loan. Our research shows that doing this within 45 days can save you money over the life of your loan.