How to Choose a Lender

Question: What's the best way to go about choosing a lender?

Answer: Since a home may be the largest purchase you will ever make, choosing the right mortgage lender is a very important decision. Which of the many mortgage originators in Dane County is right for you? The answer may take a little effort through homework, research and telephone shopping, but the results will be worthwhile. The more you know about mortgage lending increases your ability to select the financing that meets your particular budget and lifestyle. If you have someone who is willing to work with you and explain how the process works, you should be fine. Figuring out your finances to afford that special place can ease your worries. Choosing a mortgage lender that will provide personalized financing options will help. Buying a home should be one of the most rewarding experiences of your life. Even if you've only just started driving around and looking at houses and neighborhoods, it's not too early to take stock of your financial out-look as it relates to having a home. There's a difference between fixed rate mortgages and adjustable rate mortgages. Make certain your loan officer is a home financing expert who knows how to make the application and approval process as easy and worry-free as possible.

How do I select a mortgage lender?

Ask your family, friends, neighbors, co-workers about their mortgage lender. Start your home buying search as early as you can. Why? First, because a lender can help you determine exactly the amount of home you can afford and even pre-qualify you for the purchase. Second, the sooner you choose a lender, the sooner you can be approved for your loan and be ready to move. Your real estate professional is also a primary source of mortgage lender information by bringing a huge shopping list of names down to size. After learning about the strengths of various lenders, phone them and ask about interest rates, points, fees, commitments, escrow terms/closing requirements and loan servicing. If you get poor or incomplete answers, cross that lender off your list. Remember rates change on a daily basis. The Internet is a good source of mortgage lending information, however, read the fine print. Make sure there are no hidden costs. Interest rates across the board are about the same so don't let the interest rate be the sole determining factor for your lender. Check into the company's history and reputation. Get good faith estimates and compare.

Is there a difference between lenders?

There are many types of home mortgage companies including banks, credit unions and mortgage lenders. Your lending options will vary. Also some lending companies have more flexible hours than others. Be sure to call for an appointment. Remember that interest rates will be about the same across the board but fees will differ from institution to institution. Do a little research - make a few phone calls. Nothing is more important when it comes to choosing a mortgage lender than trust. It all comes down to reputation. See if the lender offers a variety of options. All of the products are available with various terms, each with its own unique features and benefits.

Before you apply

Familiarize yourself with necessary information for your mortgage application checklist. Whether you're already looking for a home or just getting started, your loan officer can find out how you can receive credit approval so you can shop for a home with confidence. Here are a few items from that checklist you will need to know: In-come, liquid assets, liabilities and real estate owned.

After you apply

The loan officer should take it from there. The officer should contact you with information on the status of your application. Once the approval is given, the lender will call. A lender can map out your future with a comprehensive financial plan. Often they offer a wide variety of services from investments and insurance to financial and tax planning. Long-term financial health will benefit your family.