RealEstateBuySellExchange.com has provided the information below to give our readers the opportunity to review the lending options existing today.
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Most people consider the best lender is the one that gives them the lowest rate that may not always be true. Everyone is conscious of getting the best price, but what about integrity, efficiency, compatibility, and can the lender be trusted?
Whether dealing with a bank, mortgage broker, savings and loan, or a credit union, technically speaking there is very little difference when it comes to competitiveness of their loan rates. The real difference is their service and how they provide that service.
We feel the best way to search for a Lender is a multi step process. First, we suggest talking to all friends, relatives, work associates and anyone else you respect their opinion who may have recently had anything to do with a lending institute. Find out if they had a good or bad experience and how or why it happened.
Second step is to take a few hours, make some calls and visit various local offices of lending institutions. Gather their information, find out not only their interest rates but ask about their origination points, fees, closing costs, any hidden costs, down payment needs and what paperwork they will require.
Third, if these people are not helpful on your first fact finding expedition, then I doubt that is the company you want to try and borrow thousands or millions. Yes, you may be dealing with a major lending institution, but the fact is your interaction will be with the loan officer and their assistants rather than the CEO. If gathering initial information is a hassle, then just imagine what headaches await when you want to borrow thousands or millions.
Fourth item we look for is a match between the turnaround time with regards to the overall loan. One institute might have a slightly lower price, but if it takes them weeks more to return a response to your loan, what good is the lower rate? Again, we agree the interest rate on the loan is a primary interest to most, but what happens to that dream home if the institute you are working with cannot meet the deadline?
Fifth item we suggest is a full examination into selecting a Lender are their other options. What we mean exactly is, does the Lender offer you other possible alternatives to give a selection of loans to choose from? Lending institutions are no different from any other business, sometimes when they get overloaded in a particular item they make other products more attractive to balance out their portfolio. For example, you may be in the market for a 15-year loan, but if the rates for a 20 or 30 year loans are more desirable then take the longer note and save money. You can always use one of our online mortgage calculators and determine the payout needed each month to fulfill your 20 or 30-year note in 15 years.
Sixth and final item of selecting the Lender is their ability to give a pre qualified status and a pre approved status of your future loan. Being pre qualified means a loan officer has taken some information from you, calculated a debt ratio and gives a verbal estimate of the approximate size of a loan you can apply for and "maybe" receive. Pre approved means the lending institute has examined all paperwork needed including credit report and will issue a paper stating your approved loan amount, interest rate and how many days they will hold this option available.
The above items are just a few of the highlights of selecting a Lender. Since this is one of your largest purchases you will make for you and your family, take time and do your homework. Being prepared and having prior knowledge is an excellent tool in saving money and eliminating headaches not in lending but a good rule of life.