Because most people shop for a mortgage lender so infrequently, many are unsure what to look for when the time comes. Consider these tips for finding the best possible lender for your needs.
- Ask for referrals from people you know, financial advisors, or your real estate agent, staying aware of potential conflicts of interest.
- Do everything possible to correct errors or other issues that may be dragging down your credit score.
- Look to local and national lenders for optimal interest rates. NerdWallet offers daily comparisons of rates from major companies.
- Read the fine print; many contracts charge extra fees beyond regular principal and interest payments.
- Check out online reviews on Google, Yelp, Zillow, and Facebook.
- Consider filling out a few mortgage applications for comparison. Variables may include fixed or adjustable interest rates, amortization, mortgage insurance, balloon payments, and interest-only ARMs.
- Watch closely for exceptional service or lack thereof. Must you jump through hoops just for essential quotes? Are your phone calls returned? How quickly can the firm process your loan?