A very important part of purchasing a home is finding the right lender. Listed below are ways to choose a lender and characteristics you should look for.
Questions to Consider When Selecting Your Lender
- What is his or her reputation within the community? Does he or she have references?
- Is the company well known in the area? How long has the company been in business?
- Is the lender a mortgage broker? Does the lender have access to a wide variety of loan programs?
- Can the interest rates be locked in and for how long? Is there a charge?
What NOT to do When Looking for Your Lender
- Do not call around asking for interest-rate quotes.
- Rates quoted over the phone are rarely locked prices. This is one way the lender gets you to come into his or her office.
- Rates can be subject to change unless they are predetermined for a specific period of time.
- Interest rates can change daily. A quote you get today may not be available at the same price tomorrow.
- The interest rate you are quoted over the phone by a lender who knows nothing about you may not be a program that will fit your needs or qualifications.
- Do not agree to loan terms that you do not understand. A qualified loan representative will explain rates and terms to your satisfaction.