When home buyers are shopping for a new home, their shopping is not just limited to the house they want to live in. In addition, they must shop around to find the right mortgage lender to meet their needs. This process is not as hard as it seems at first glance. For home buyers who want to find the perfect mortgage lender, they can follow these five steps.
1. Ask Friends and Family for Recommendations
One of the best ways to find a good mortgage lender is to ask for recommendations. When home buyers get a recommendation from someone they can trust, it gives them a better chance to end up with the right lender.
2. Research Potential Lenders Online
Before sitting down to talk with a lender about a mortgage, it is important to research them to make sure that they have a solid reputation. Check their history with the Better Business Bureau. Also, make sure to read as many reviews as you can find online from people who have obtained mortgages with them.
3. Decide What Size of Lender is Right
One of the most important decisions that home buyers need to make is what size of mortgage lender is preferable for them. For people who want to have a lot of face-to-face contact with their lenders and a more personal touch, smaller lenders are preferable. However, the rates offered by larger lenders will generally be better, but the downside to larger lenders is that they sometimes have a reputation for not providing the best customer service.
When home buyers have found three or four lenders that seem like good options, they should ask each one for a good faith estimate. These good faith estimates will include all the miscellaneous fees and costs that will come along with the mortgage. Looking them over will allow mortgage shoppers to find out which lender offers the most reasonable mortgage for them.
5. Sit Down with the Lender
Before deciding to go with a particular lender, make sure to have a face-to-face meeting with them. This personal meeting is crucial for making sure that the mortgage lender is the right fit. This meeting is a great chance to ask questions about anything that is unclear.