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Mortgage Lenders - Choosing the Right One

Whether you are in the market for a mortgage refinance, a new home loan, or even a bad credit mortgage loan, it is important to choose a good mortgage lender. Some of the things you should consider when looking for the right one for you include the mortgage products offered, the interest rates, and the reliability of the lender with past customers. 

Many different mortgage lenders will offer essentially most of the same loan products.  In other words, you can get a fixed rate mortgage with a term of 30 years from just about any lender you decide to inquire with.  However, each lender will have slightly different loan qualification requirements.  This is an important difference in choosing a lender.  Each has its own guidelines that are required.  If you do some research on these requirements and find out which lender specialized in the type of loan or mortgage refinancing you are looking for, you may be able to reduce your paperwork and streamline the process.  There also may be big variations in the closing costs associated with the loan.   

Of course, interest rates are the most important factor when taking out any mortgage, and will probably tip the scale in favor of whoever is offering the lowest rates.  Whether you are looking for a bad credit mortgage, a mortgage refinance, or a traditional home loan, the interest rate will be a determining factor.  Rates are low and lending institutions are being very competitive, so you should be able to find a rate that is very low and will give you a low monthly payment; much lower than when interest rates are up.  It is important that you don't compare rates using the simple interest rate.  You need to look at the APR, or Annual Percentage Rate.  The APR factors in all of the closing costs, including discount points, where the simple interest rate does not.  So if one lender offers a simple interest rate of 5% and the APR is 5.4% and another lender offers a simple interest rate of 4.75%, make sure that the APR for the second lender is less than 5.4% or you may not be getting the best rate. 

One more tip for choosing the right mortgage lender is to make sure they have lots of experience.  You should verify that the lender you decide to go with has been in the business for many years.  You don't want to go with a new company that has no track record.  This can give you the assurance that the lender knows what he is doing and has the experience to recommend the best loan product for you.  If you shop around, understand the interest rate, and look at the track record of the different lenders you are considering, you will likely come out with a great mortgage product that is the best for you.