How to pick a lender?

[Francis M.]

Besides the rate are there any specific things to think about when choosing a lender or broker for financing a conventional loan? 

[Abbey Humphreys]

Hey Francis! When picking a lender, it's definitely important to weigh your options and make sure they can meet your needs. Here are some factors that are important in the consideration of this decision-

Loan Terms: Check the loan terms offered by different lenders, such as the length of the loan (e.g., 15, 20, or 30 years) and whether they offer fixed or adjustable-rate options. Choose the terms that best suit your financial situation and long-term goals.

Accessibility and Convenience: Consider whether the lender has a physical presence or operates entirely online. Choose an option that aligns with your preferences and allows you to communicate and access information conveniently.

Flexibility and Eligibility Criteria: Check the lender's eligibility criteria to ensure you meet their requirements. Some lenders may be more flexible than others, especially if you have unique financial circumstances.

Lender Reputation and Reviews: Research the lender's reputation and read reviews from previous customers. Look for lenders with positive feedback and a track record of excellent customer service.

Loan Products and Programs: Different lenders may offer a variety of loan products and programs. Ensure that the lender you choose provides the type of loan that aligns with your needs and financial situation.

Customer Service: A responsive and helpful customer service team can make the borrowing process much smoother. Consider a lender that offers good customer support and is willing to answer your questions.

Preapproval Process: Look into the lender's preapproval process. A preapproval can give you an advantage when negotiating with sellers, so choose a lender that can provide a quick and efficient preapproval.

Loan Processing Time: Ask about the average time it takes for the lender to process a loan application. If you're in a time-sensitive situation, a lender with a quick turnaround time can be crucial.