Buying a Home – Choosing a Lender
How Do You Find a Good Lender?
This is one of your most vital decisions in buying a home. Many home buyers have fallen prey to internet lenders who can’t and don’t deliver the loan programs promised…and the unsuspecting home buyer discovers this right before the closing is to occur.
If the interest rate and terms seem too good to be true, trust that instinct. You’re right. It is essential to work with a lender who is available personally to explain the financing options available to you, make recommendations based upon your specific circumstances, answer all of your questions, and keep you informed at each step of the approval process.
How long do you intend to keep this property?
30-year fixed-rate programs are enticing, but if you know you’re likely to relocate in 3 years, there are numerous loan programs that make more sense for you. Personalized advice is the benefit of a consultation with a human. That’s why you’re looking for a seasoned professional, not a computer program.
So how do you find this person?
Take your first step in choosing a lender by asking friends or co-workers for a referral. If you already have a Realtor, they will often be your best choice to recommend good lenders. Talk to two or three lenders. It’s fine to shop for rates, but be sure the lenders you speak with provide all of the information necessary for you to compare the true terms of the loan.
Recent regulations require lenders to provide this information clearly and early in the process. If you speak to someone who doesn’t ever seem to give you details about the programs they offer, keep looking. You haven’t yet found the right person.
See additional posts in the Buyers category for helpful tips on any aspect of buying a home. And if you don’t find what you’re looking for, just ask!
In the meantime, go ahead and search for your next home. Let us know if we can help.