select the right mortgage lender

What Should you Keep in Mind (Not Just Rates) When Selecting a Mortgage Lender?

Sep 04, 2018 (0) comment , , ,

For most people, the most important financial decision they will make in their lifetime is choosing a home mortgage loan. Yet studies show that fewer than half of homebuyers actually do enough research into all of their options when it comes to a mortgage. The most important thing when applying for a mortgage is to find a good lender who can provide you with the level of service you need. This means that you should shop for the right lender first instead of simply looking for the lowest rates and/or fees. It’s also important to build a healthy relationship with a lender who can help you with your transaction.

People who know the ins and outs of the mortgage loan business say that when you are starting the home-buying process, you should make two new best friends: your real estate agent and your mortgage lender. Your real estate agent will be by your side as you search for and hopefully find the home of your dreams, but it is just as important to feel comfortable with the person who is going to handle your mortgage. You may be tempted to simply choose the lender who offers the lowest overall rate. But keep in mind that advertised rates can be misleading; your rate will be decided in large part by your personal financial profile, and very few borrowers get the advertised rate.

Aside from your rate, you should also look at the options the lender offers, such as level of service, simplified process, and any extra or hidden fees you may be charged.

Be sure to discuss the topics below when searching for the right lender:

Credentials

Every lender is different. Be sure your chosen mortgage lender is licensed and registered at the state or federal level, and don’t forget to ask to see the lender’s training and licensing credentials.

Competitive Interest Rates

A competitive interest rate on your mortgage can have a significant impact on the amount you pay over the life of the mortgage. Do your research and get quotes from at least three different lenders to compare offers.

Healthy Communication and Responsiveness

Remember, money isn’t everything when it comes to mortgages. Identifying a lender you trust and enjoy working is equally important. Will your lender guide you through the process smoothly and answer your questions promptly? Will he or she respond promptly to emails and phone messages? Will you receive updates as to the status of your loan at every stage? This kind of personal service is, in some ways, just as valuable as money. A good lender will answer all your questions and work closely with you throughout the process. Don’t hesitate to ask these types of questions, and be sure you feel comfortable with the lender you ultimately decide to work with.

An Excellent Reputation

Reading product reviews before buying from an online shopping site has become standard practice, so why not read reviews of potential mortgage lenders? Ask friends who have recently purchased a home who they used and whether they were satisfied with their experience. You may also be able to find customer reviews of a mortgage lender by doing a LinkedIn search for the lender’s name.

Choosing the Right Lender

Once you have done your research on lenders, including getting interest rate quotes and reading reviews, it’s time to make a decision.

A reliable and good lender can help you:
• Decide how much you are qualified to borrow;
• Find the right kind of mortgage that matches your lifestyle and income projections; and
• Decide whether you need to improve your credit profile.

No matter how much research you do during the process, however, remember that applying for a mortgage loan is complex, so you need someone in your corner with your best interests in mind.

Use online mortgage rate tools to compare mortgage quotes from local lenders with current rates of the top mortgage lenders in Massachusetts. You can also use online tools to reach out to multiple mortgage lenders across the state to compare rate quotes and explore your options. Mortgage Lenders in MA will help you select the right mortgage loan that will enable you to purchase the home of your dreams.

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