If you’re thinking about buying a home and have started looking for a mortgage, you already know there are many lenders to choose from. But what should you look for when shopping for a mortgage lender? Interest rates are important but they are not the only factor to consider. Here are a few questions you should ask when choosing the right lender for you.
What’s their reputation?
The mortgage business is very competitive, since a home is by far the largest purchase most people will ever make. But when it comes to reliability and quality of service, no two lenders are alike.
That’s why it’s important to research lenders before choosing one. Find out how long they’ve been in business and read reviews from their customers. Keep in mind your lender’s ability to close your loan on time may be critical, so look for a lender that offers some assurance that your closing will happen by a certain date.
How many loan options do they have?
There are almost as many types of mortgages as there are lenders. When comparing lenders, look for those that offer a wide variety of financing options, including government-backed loans and construction loans.
Pay particular attention to lenders that offer flexible loan terms, including low down payment options and 100% financing. These factors can be particularly important if you’re a first-time homebuyer or have a unique financial situation.
How much will you really pay?
Many people who get mortgages are surprised when they find out how many fees and costs are involved. While some of these costs are unavoidable, you’ll want to pay very close attention to a lender’s fee structure and what the actual costs of getting a mortgage will be.
Fortunately, when you apply for a mortgage, the lender must provide you with a Loan Estimate within three business days. This form details all the estimated costs of your loan, including the monthly payment and a breakdown of fees and closing costs. This can help you compare the costs of different lenders.
How easy is the process?
There’s no getting around the fact that buying a home can be complicated. That’s why it’s important to choose a lender that makes the financing process as easy as possible. In a competitive housing market, a lender that offers a simple, straightforward preapproval process can give you an edge when putting in an offer on a home.
Can you count on them?
One of the biggest complaints about lenders is not returning a borrower’s calls on time. That can be a major pain if you meet an obstacle in the homebuying process or your financial situation suddenly changes.
Look for a lender that not only responds quickly to your questions and needs, but also communicates clearly and is willing to walk you through each step in the process. It also helps if your lender has local branches and offers easy online access to loan officers in case you have questions or concerns.
All of these reasons are why so many homebuyers choose Right By You Mortgage. Not only do we offer a closing guarantee to ensure your transaction closes on time, but we also have a 100% financing option that removes the barrier of a large down payment, making homeownership accessible to more people.
As part of Fidelity Bank, Right By You Mortgage also has local branches and a solid reputation for our straightforward application process, responsive customer support, a wide range of flexible loan products designed to meet any borrower’s needs, and over 2,000 reviews from satisfied customers.
If you’re looking for home financing, the loan experts at Right By You Mortgage are always ready to help. Find a local loan officer near you or email us at inquiries@rightbyyoumortgage.com.
