Choosing a mortgage lender is probably one of the toughest decisions you will ever make in your life. With the number of mortgage lenders increasing every single passing day, it becomes really difficult to choose the right one. There are hordes of such lenders who are eagerly waiting for your loan application, but how do you make your decision. Getting a mortgage loan is not a short term thing. You get saddled into a relationship with the lender for many years to come, and therefore, it is important to find the one who is right for you. To help you out in this ordeal, here we have listed the things that you should consider before choosing a mortgage lender.
1. Decide the Kind of Lender that will work best for you
First things first, you need to decide the kind of mortgage lender that will be most suitable for your loan needs. Would you prefer a large lender or a small one will work? If you are looking for a lender who can provide you with some personal customer service, the one who remembers your name, it is a better option to go for a small lender. On the other hand, if you are looking for a lender who can give you the right interest rate, going for a larger lender will be the best option. It is important to research the differences and the pros and cons of both types of lenders before you make the final decision of choosing one.
2. Work Out on whether or not you need a Mortgage Broker
Working with a mortgage broker has its own benefits. You can save a lot of time working with a mortgage broker as they will do plenty of your work especially when it comes to finding the right lender for you. However, as every option has its own pros and cons, so does choosing a mortgage lender. Before you go for picking a mortgage broker, here are some of the drawbacks that you should know.
Profits are earned by the brokers when they arrange a deal between the new homeowners and the mortgage lenders. There are high chances that they set you up with the wrong lender just because they are providing them the highest profit. While they will make money out of it, you are going to get stuck in a bad relationship. It is therefore, important that you do your research before going for a mortgage broker. It is always better to ask for references and talk to other home owners asking them about their experiences with brokers. Also, ask for references from the brokers and if they are hesitant to provide them, consider moving to some other broker as it is a big red flag.
3. Ask Around
While brokers may be an easy option for you to find the right lender, it is not the only way. You can ask around, consult with your friends, family and co-workers who have gone through this process in the recent past. Getting help and consulting with them will help you make your way through the sea of lenders and will assist you in finding the right one, someone that you can trust with such a big decision of your life.
4. Research about the Reputation of the Lender
Regardless of what you hear from others, it is important to conduct a thorough research about the lender. Conducting a background check will help you in being sure that you are not making a wrong choice. Talk to the past clients of the lender and ask them about their experiences. It is also a good idea to check online reviews and asking the lender about all the questions that arise in your mind. It is important to ask them about all your queries so that you can save any surprises later on.
5. Consult your Estate Agent
Consulting your own real estate agent can be really helpful as they will never recommend any lender who has a bad service or history. Therefore, before deciding on the mortgage lender, it is advised to consult with your real estate agent. Since they will be especially careful about their customer service, you can use this to your advantage. Let the lenders know that you came in through your real estate agent’s recommendation. While this can serve as a good ice breaker between you and the mortgage lender, you can also cut down on the closing costs in this way.
6. Experience Speaks for itself
While it is very important to take care of other factors, you should definitely go for a lender who has been in the field for some time. While the newbies may offer you astounding rates, the overall experience will always be better with someone who has been in the business for years as they know what they are doing.
7. Compare the Rates and Services
Before you take the final decision, it is important that you compare the services and rates of as many mortgage lenders as you can. This will assist you in choosing the right one and not falling for any false promises.
Now that you know how you can choose the best mortgage lender, go and check out the property that you have been dreaming to purchase for so many years now. Once you have decided what to buy, just go through the above mentioned things once before you are on your way to choosing a mortgage lender. Make sure you choose the lender based on their experience, history, past clients and the rates they are offering. Don’t forget to compare some of them before you take the final decision.
There are many companies out there that can help you in choosing the right mortgage lender. If you are struggling to find the right mortgage lender for you, you can go to Quiddi Compare to find the right match. They will help you in choosing the right mortgage lender in accordance with your demands and specifications.