Wondering How To Choose The Right Lender?
The economic boom following the dot com bubble has given great opportunity for home buyers to shop around for low rates and a great home loan program. This is so because more and more companies jumped into the lending business to seize the profitable opportunity and to capture the demand of home buyers.
Please note that this is pre-financial crisis, before the collapse of investment banks and the consolidation of big banks.
It can be a difficult task for the new borrower to pick a mortgage company as there are so many to choose from. Follow these tips before you choose to go with a local bank, broker, or an out of state lender.
First is to check out the company’s rating with the Better Business Bureau. The rating should not be the end all or be all of a mortgage company’s quality of work but it can give you a good idea if there are customer complaints, issues, and other items that may be red flags for you as the customer.
Since you will be shopping around for better than average rates, it is very important to keep everything in writing. Ask the home loan companies to furnish you a copy of the rate that they gave you during a discussion with them over the phone.
Verbal quotes will not give you enough leverage with the other lenders when you’re trying to haggle for lower rates. Use hard copies of the rate quotations you received and ask other mortgage companies if they can do better.
Lastly, and this is the most difficult part because you cannot quantify this, it is very important for you to be able to trust the lender. Ask yourself the question, “Will I be able to trust them?” If you can’t sleep at night because you’re thinking that they are ripping you off, then obviously that’s a company you don’t want to work with.
If you can, do a little research on who’s running the company you’re considering. To keep you up to speed, ask friends, family, and or co-workers if they can refer you to a trustworthy mortgage company.