Choosing the Right Lender

The decision to buy a home is a major life event. It is a commitment that can create lifetime memories and build financial equity in one of the biggest investments one can make.

There are many things to consider when buying a home but serious consideration should be given to the lender used for financing the home.

It is not enough to assume a big name lender will provide the service expected while offering the best rate. The truth is that every lender has an individual assigned to a specific task. There is a loan officer, a loan processor, an underwriter, and a closer. Everyone has an important role, and anyone of them can drop the ball. So, what does this mean to you?

As a buyer, you have the right to shop around. Just as one shops around for the best price on a vehicle, one should shop lenders for the best rate and fees on a mortgage; after all it is the bigger investment.

There are many mortgage brokers that can get rates and programs from different banks, there are lenders that work directly with specific banks, there are credit unions, and of course big banks. One can take comfort in going directly to the bank they have accounts with and often times they may offer incentives for account holders. This is a wonderful perk for account holders, but this doesn't always mean one is getting the best rate.

Its okay to shop around to ensure you are indeed getting the best rate at the best cost; the cost being fees assessed by the lender. Just as one may seek a second or third opinion for a medical condition, one should do the same with a mortgage loan. Ensure the lenders pull your credit within a two week window to prevent your credit score from being negatively impacted. Do not give any lender money for appraisal costs or any other type of fee until you know they are the one you wish to do business with. A professional lender will not get offended and in fact should encourage you to shop around if they are honest and worth their salt. A great lender is never afraid to go over fees and explain them to you. A better lender always makes themselves available to you in the event you have questions. Referrals are always a great source for lender names and if you know of someone that recently purchased a home, ask them what they thought of their lender. Don't forget to ensure your REALTOR and lender have each others information so that they can work together to ensure a smooth process.

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