While most lenders stand behind what they advertise or promise, you should still do your homework before committing to financing.
Get Mortgage Company Referrals
Ask a Muljat North Realtor® for a list of preferred lenders. Friends, family and coworkers who own their homes can also be a great source of information. Applying for a pre-approval can help save time and make it easier to get the best rate, but before your decide on a lender, ask for referrals.
Small Versus Large Lenders
Choosing between a small local lender or a larger national lender is mostly a matter of preference, but knowing which you’d prefer can help you find the right deal for your situation. If you like personal service, and enjoy the face-to-face contact, it may make sense to choose a small mortgage lender in your local area.
Mortgage Company Reputation
Generally, a good lender will have a solid reputation with accreditation and reviews to back it up. To figure out where your lender stands, start by doing this research yourself. Check with the Better Business Bureau for ratings, reviews and complaints against the mortgage company. Look for a posted mission statement or customer service rewards on the lender’s website. Verify the lender’s standing with the local Chamber of Commerce
Mortgage Company Customer Service
Finding a lender with great customer service can make things easier, especially if you have questions about the application time or terms – or find yourself needing help with mortgage down the line. Buying a home is a big financial commitment so you should expect to be treated well by your mortgage company.
Good Faith Estimate
Once you’ve narrowed down your choice to three or four lenders, ask for a good faith estimate: a detailed list of costs provided by a bank or mortgage lender to a borrower, required by law. The costs listed include the following:
Settlement or closing costs
Title insurance
Taxes
Attorney fees
Interest rates
Partial month interest
Credit check costs
Hazard and property insurance rates
While these are only estimate and may vary slightly from your actual costs, you can use your good faith estimate as a tool to help you choose the most reasonable lender.
Source – Susan Wellish, realtor.com