As the saying goes, our homes are likely to be the most expensive single purchase that we ever make. Depending on the terms of the mortgage, some homeowners will pay the huge loan back over a period of 25 years. Therefore, the decision of a mortgage lender shouldn’t be taken lightly. Here’s what to look for in a mortgage lending company;
Local Servicing
Firstly, did you know that some companies will sell your mortgage on to the secondary market? When this happens, it makes communication very difficult when a problem arises. In our experience, it’s always best to go for a lender that maintains servicing themselves. If you have a problem or even a simple question you want to ask, they will be just one phone call away. Even after closing and settling into your home, they will still be ready to help whenever you need it.
Experience and Track Record
Don’t get us wrong, we’re all for supporting startups and helping them to progress in their chosen market. However, when something as important as your home and finances are on the line, we recommend going to experience every single time. Who do your friends and family recommend? What does your real estate professional suggest? If you work with a lender that has a great track record and a good reputation with those you trust, this is a brilliant sign.
Also, many lenders have been in the market for a number of decades. In this time, they’ve survived financial collapses and all sorts of other economic difficulties. If your chosen lender boasts years and years of experience, they will know how to deal with whatever comes their way for the duration of the loan.
Local Knowledge
Next up, we also recommend looking at the lenders in your community. Although you might not find a solution for your mortgage needs, it’s worth consideration since they know the market and probably have connections. For example, they might work with trusted and reliable appraisers and real estate professionals. When everybody involved in the home-buying process knows the local market, it makes everything that little bit easier.
Honesty and Transparency
Let’s not forget, a mortgage lender is a business and wants to make money. This being said, it doesn’t mean they can’t be honest and transparent with their pricing and with their business operations as a whole. In this market, you need to assess the rates of all companies. If you get a detailed look at how everything works, you’re less likely to experience surprise fees later down the line.
Clear Communication
As we’ve alluded to throughout this short guide, a mortgage is a long-term commitment. Therefore, we recommend choosing a mortgage lender that is happy to take your questions and help wherever necessary. If your phone calls are going ignored or the staff doesn’t seem to want to help, go elsewhere while you still have the chance. With your chosen mortgage lender, you need to be confident that they’re accessible and friendly with customer service.
Other Important Traits
While talking with various mortgage lenders, you should also look out for companies who are detail-oriented, straightforward with information and fees, and thorough in what they do. Also, they should guide you through the process without having to be chased up time and time again.
If you can find a mortgage lender with all of these positive traits, you can choose your dream home and start the next chapter of your life smoothly!
