How To Shop for a Mortgage
Not only is the process complex and stressful, but it may be the largest financial transaction of your life. It is important that you choose the right loan, the right mortgage banker, and get the best rate. So how do you coordinate all of these things and still manage to close on your home?
Choose the Mortgage Lender and Banker
Decide to shop only a handful of lenders you feel comfortable with; this means less than five. Choose companies that your friends and family have had good experiences. The products offered by these larger and more reputable lenders often differ very little, so shopping less than five is more than enough to make a good comparison. The best lender may not have the absolute lowest rate, but great service and support are worth the extra tenth of a percentage point.
When you choose a lender, you will be matched with a mortgage banker to handle your loan. Ask the banker about their satisfaction rating and if you can read any client testimonials they may have. Also, ask the banker to describe the loan process to you in detail so that you have a better understanding of the company's mortgage operations.
Choose the Right Loan
Once you have chosen a mortgage banker you trust and are comfortable transacting with, they will help guide you to the best loan to fit your needs. Don't be afraid to ask too many questions about different loan options. Your Banker is a great resource. Remember that the more financial information and documentation you provide, the faster and more efficient the process will be.
Once you have decided to start shopping for a mortgage, keep in mind that you only have a 30-day window to do so before shopping for the best rate starts to affect your credit score.
When shopping around for your home loan, keep these three things at the top of your priority list. Most importantly, choose the best lender to cater to your needs as a client. Having a great lender and Banker will make the other steps in the mortgage process less stressful and more efficient.
- Last edited December 02 2008
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