How to Choose the Right Lender

When buying a home, choosing the right lender is very important. You’ll be committing to paying off a home loan for the next 15 or 30 years, so make sure you have a lender that is the best one you can find.

Numbers, numbers everywhere: Obviously, there are going to be lots of numbers as you compare lender to lender. Taxes and insurance will remain the same, more or less, so focus on the rates, points and fees. These are the three sectors that will vary greatly from lender to lender. Calculate carefully when considering because they all affect each other.

Conduct some background research: Do some research before filling out an application. Feel free to ask questions as well. If you are given the runaround simply because you haven’t applied yet, that’s usually a bad sign. Feel the lender out. If you can’t even get preliminary questions answered, that’s usually a sign to flee running to the next potential lender.

Play the part of an interviewee and interviewer: The lender will want to interview you after you fill out an application. After all, hundreds of thousands of dollars are on the line for them. But just as they want to learn about you, you should also learn about them. Don’t hesitate to ask a few questions of your own during your interview. Find out who will service your loan, or what happens if your rate lock expires before you close? These are all things you need to know before signing.

Always remember: choosing the right lender is just as important as choosing the right home.

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