Having a good lender can make the mortgage process easier and save you a great deal of money
- Get referrals from people you know.
- Interview more than one lender.
- Talk to us.
Having a good lender can make the mortgage process easier and save you a great deal of money
Having a good mortgage lender—a bank or savings & loan, an online lender, or a mortgage broker—can not only make the mortgage process easier, it can also save you a great deal of money. Here is how to choose the right lender:
Talk to people you know. Real estate agents usually have one or more competent, professional lenders that they regularly work with. Another professional you work with—a financial planner or accountant, a stockbroker or an attorney—may also know a reputable lender. You may want to ask a friend, neighbor, or co-worker who has just purchased or refinanced a home. Or you may be familiar with a lender whose advertising you’ve seen.
Check with a direct lender you work with—a bank, a local savings and loan, or a credit union. Remember, there may be some limitations in working with a direct lender. Most lenders have a relatively limited range of loan products, and, out of the 40-plus local lenders in the Bay Area, you will need luck to find the one with the most competitive rate and terms on the type of loan you have chosen.
Call at least one mortgage broker. A good mortgage broker will have a working relationship with at least fifty different lenders—we work with over 80 lenders—including almost all local, regional, and national banks and savings & loans. Lenders discount their loans to mortgage brokers. A borrower does not pay more to use a broker, and often pays less. Mortgage brokers have other wholesale sources not available to individual consumers. Borrowers save money when a broker shops many different lenders for the lowest rate and fees. A broker is especially valuable if you have an unusual scenario.
If you are shopping with online lenders, be aware that the rates published online are often for loan programs which have very tightly defined criteria that few borrowers meet. Online lenders generally cannot provide the knowledge and feedback that might help you make the best choice among the wide range of mortgage options. Also, some online lenders have developed a reputation for not providing the rates advertised.
Interview more than one lender. You need to feel comfortable with the lender you choose. You want a lender who asks probing questions, listens to your answers, and presents you with intelligent options. Also, reading What does a lender need to qualify me and provide an accurate rate quote? and having the Buyer’s Worksheet or Refinancing Worksheet will help.
Of course, we would like to talk to you. We know that this book gives you an idea of who we are, but when you call you will find us to be responsive and informed—and very competitive.
