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Tips in Choosing a Mortgage Lender

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By : Sonia Smith    99 or more times read
Mortgage lenders play a big role in buying a home. The mortgage lender holds the purse strings; the level of service could make a big difference between a happy new homeowner and a disappointed would-be buyer who miss out on a home purchase.

Choosing a mortgage lender to help you purchase your dream home requires careful planning and thorough research on your part. Before shopping around for a mortgage lender, find out the type of mortgage you are looking for because not all lenders offer all loan types.

Below is a list that could help you choose a mortgage lender:

  1. Be informed of the current mortgage rates so you can compare the services and rates of several lenders for various types of loans. Make it a point to study the types of lenders and their advantages and disadvantages for your mortgage needs.

  2. Make certain that you understand the fees because besides the interest rates, you also have to deal with the closing costs, points and occasional commissions that you do not see.

  3. Real estate agents can greatly help you find and choose a mortgage lender. Most good agents often have lenders that they will be able to refer to you.

  4. Referrals from relatives and friends are good sources when choosing mortgage lenders. Ask if the mortgage lender describes the different types of loans available, the locked-in interest and costs of closing. If they are happy with the services of the lender, the most likely you will be happy as well.

  5. You can check online to choose a lender. There are several sites offering estimates from several lenders, but there are times when you have to give some personal information such as your social security number. You can decide upfront if you prefer an in-person service to narrow down your choices.

  6. If you have no time to find a lender yourself, consider a broker to help you. Nonetheless, you may have to pay the broker upfront. Ask about the certification of the mortgage broker because dealing with a certified one assures that you are in good hands.

  7. Ask about the terms, fees, discount points, penalties and costs involved in the deal. The life of the mortgage is often broken to various mortgage terms such as three, four or five year term and mortgage lenders charge fees for a specific mortgage.

There are great sources on line for information about mortgage lenders. Researching the internet allows you to find customer reviews and testimonials from people who have used the lender’s services. These testimonials will give you a better idea and determine the lender that is right for you.
Additionally, many of the stable and reputable mortgage lenders have their own websites where you can get additional information. You can browse and find out what they are offering. Selecting a mortgage lender is a daunting task; therefore, if you are unsure, you can always choose the most financially stable and highly reputable lender to help you buy your dream home.
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