Competitive rates are important, but when you consider the fact that most lenders get their money from the same sources (and therefore have essentially the same rates to offer) you must look at some other factors before choosing a lender. You need a lender who works with you and your real estate agent as a team and has the same goal – to get your loan closed in a timely and professional manner.
Building a list of lenders
Talk to people who had bought or refinanced a home recently. Check online as well as the newspaper's real estate or business section.
Talk to a loan officer
Call or visit the lenders on your list. Get a feel for what it would be like to work with them, and how they approach your needs. If you’re still uncertain, ask for reference-recent home buyers like yourself and talk to them.
Compare rates for similar loans
Among the things, you’ll want to discuss with prospective lenders are the rates they offer on mortgages. When comparing rates between lenders, be sure the rates are for comparable loans and remember to include fees and other costs so you’re really comparing apples to apples.
SOME OF THE QUESTIONS TO ASK A LENDER SHOULD INCLUDE
Are they a mortgage banker/direct lender?
A mortgage banker is a lender who not only originates their own loans but also underwrites, approves, funds and services them. A mortgage banker has the most control over the loan.
Are they a mortgage broker?
A mortgage broker originates loans but does not actually lend the money. The broker will submit the package to an outside source that underwrites and funds the loan. A mortgage broker may offer the best opportunity to get your loan to approve since they can send the loan to many different lenders. They also offer a wide variety of loan programs.
How long has the company been in business?
Lenders come and go. Make sure that the company that you are dealing with has been around for a while.
So, remember to ask first for all this recommendation and be careful about letting them run your credit. The lender needs to request your permission to run your credit. If you gave them your permission to run your credit try to stop shopping around with other lenders because your credit score can go down, for this reason, you need to be sure which lender to work with.
The best lender is the one that can give you the best rate in the market, along together with working in your loan process faster, clear, without mistakes, good communication between you and your real estate agent and closing on time.
The process can sometimes closed as fast as two weeks, all depending on how easily you can provide all the information the lender needs. But, it can take 30 to 45 days to close the real estate transaction.
Written By Julieta Volcanes Natera
Comments