5 tips for finding the right mortgage company

Deciding to buy a home is a big step, and you need the right lender to work with you. Choosing the right mortgage company takes time and it’s important to shop around. The following tips can help you make sure the lender you choose is right for you.

What type of lender

A mortgage company can be large or small. If you want to deal with someone who is more personal and knows who you are from the moment you walk in, then a smaller lender is the best option for you. However, smaller companies may not be able to get the best interest rate. Larger operations may negotiate rates differently and may get a slightly lower interest rate. You should research the different companies in your area to see how they compare.

Reputation of the mortgage company

When checking out businesses in your area, you should also take the time to check their online reputation. Many sites are dedicated to giving consumers a say in how they are treated. You should not only look at reviews from current and former customers; you should check with the Better Business Bureau. When talking to associates at these businesses, don’t be afraid to ask questions about what you read. It gives them a chance to explain any contradictions they may have found.

Ask family and friends

If you have family or friends who already own a home, ask them who they use. You can find out how the lender treated them during the application process and since they completed the sale of their property. By getting these first-hand references, you know you’re looking at someone you can really trust.

Real estate agents can help

Real estate agents not only know where the best houses are. They also know who is the best mortgage company. If you don’t already have pre-approval in process before speaking with an agent, get their advice on which pools are best. Yes, they can recommend your in-house lender first thing. However, a great agent will also tell you which officers take the best care of their clients. If you go with one of these agents, make sure he or she knows that your real estate agent referred you. It could earn you a discount at closing and help ensure that the two of you work well together during the closing process.

A broker may still be the answer

Not everyone has the time to do all the research themselves. If that’s the case, you may want to hire a specialist who can save you time when shopping for a mortgage company. However, you should be aware that brokers earn commissions by entering into agreements between the borrower and the loan officer. Most brokers work to find the right lender for their client. Some, however, look for what will give them the most profit. Do your homework on any broker you’re considering before hiring one.