Wondering how to choose the right lender?
The economic boom after the dot-com bubble has presented homebuyers with a great opportunity to look into low interest rates and a great mortgage program. This is because more and more companies got into the lending business to seize the profitable opportunity and meet the demand of homebuyers.
Please note that this is a time before the financial crisis, before the collapse of the investment banks and the consolidation of the big banks.
It can be a difficult task for the new borrower to choose a mortgage company as there are so many to choose from. Before choosing a local bank, broker, or out-of-state lender, follow these tips.
First, check the company’s rating with the Better Business Bureau. The evaluation should not be the end or the overall quality of a mortgage company’s work, but it can give you a good idea of whether there are customer complaints, problems and other points that could be a red flag to you as a customer.
Since you will be shopping at above-average prices, it is very important to put everything in writing. Ask the mortgage lenders to provide you with a copy of the interest rate they gave you during a conversation with them over the phone.
Verbal offers don’t give you enough leverage over other lenders when trying to haggle for lower interest rates. Use printouts of the interest rate quotes you’ve received and ask other mortgage lenders if they can do better.
Finally, and this is the hardest part because you cannot quantify this, it is very important that you can trust the lender. Ask yourself, “Will I be able to trust you?” If you can’t sleep at night because you think you’re being ripped off, then obviously that’s a company you don’t want to work with.
If you can, do a little research on who runs the company you’re considering. To keep you informed, ask friends, family and/or co-workers if they can refer you to a mortgage company you trust.