From the Wires
Picking the Right Lender in 3 Steps
Dec. 25, 2012 09:00 AM
LOS ANGELES, Dec. 25, 2012 /PRNewswire-iReach/ -- When you search through RealtyPin's Mortgage Center, you'll be amazed at all of the loan options that pop up. But you can't just pick a lender at random. After all, this is your mortgage we're talking about! If you're going to commit the next 15 or 30 years of your life to paying off a home loan, you've got to have the very best lender you can find. Here's how you narrow down all of the choices:
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1. Ask questions before you fill out an application
There's no rule that says you have to start the formal loan process before you can talk to anyone! So, pick up the phone (or, head to your local bank branch in person) to get some basic information. You'll be able to tell a lot about a lender by the way they deal with you. If, for example, the lender won't give you the time of day, that's a major red flag. The same goes for a lender that tries to pressure you into filling out an application right on the spot. Bottom line – a good lender will respect you enough to answer some questions, even if you haven't filled anything out yet. If you don't get good vibes right off the bat, just think of the customer service nightmare you could be in for as a borrower!
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2. Don't be afraid to take on the role of interviewer
Once you fill out an application and it comes time for your interview, don't think of it solely as a one-way street. Sure, it's the lender's job to learn a lot about you (after all, you're asking to borrow hundreds of thousands of dollars!). However, you have a right to learn about them, as well. So, don't be afraid to ask them questions, too. Like what? Find out who will service your loan, what happens if the appraisal comes in too low, and what happens if your rate lock expires before you close on the loan. All of these are legitimate questions that you need answers to before you sign on the dotted line.
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3. Focus on three things – rates, points, and fees
When you compare lenders, you're going to have a ton of numbers thrown at you. In most cases, though, you can disregard the taxes and the insurance because those two figures are going to be pretty much the same from lender to lender. That leaves you with three numbers to compare – the rates, the points, and the fees. All of those numbers can vary widely from lender to lender, so you'll have to calculate carefully.You'll also have to take all of them into consideration together, because they all affect one another. (For example, a lower rate can be balanced out with higher points, and vice versa.)
Media Contact: James Paffrath, RealtyPin, 1-(866) 960-8649, firstname.lastname@example.org
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