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.