Friday, April 4, 2008

Tips on selecting the right mortgage lender

For most home buyers, selecting the right mortgage lender and the right home loan package may seem like an overwhelming task. There are so many rival lenders promising so many different things. They see advertisements for wonderful interest rates and mortgage packages. Of course, those packages are only available for a small percentage of home buyers who fit very particular criteria.

So when you're talking with a mortgage lender you should always feel relaxed to ask questions. The lender may not always be able to give you an instant answer, but you should desire that they find out the answer before giving you a quick but wrong answer. You should also feel that your lender is giving you honest information.

With proper research you can find a mortgage lender or group of lenders that will have enough loan packages at their disposal to have one that is right for you. The more they have at their fingertips the more likely it is that they can create a mortgage package that fits your unique circumstances. Even if you think your home loan will be fairly clear-cut you may still profit from a mortgage lender that offers a variety of home loans packages.

Look for a lender that clearly states that they can assist people with various types of home loan packages, including differences in credit history, employment history and down payment size. Again, the more tools they have in their toolbox, the more likely it is that they can craft the right loan for you.

It is a smart practice to provide your lender with whatever information they request. Never give them an original document and always make sure you have additional copies of anything they request. Keep up with cut off dates they give you and make sure you stay on top of it. You will want a mortgage lender that is responsive to your inquiries and prompts you when things are needed or cut-off dates are approaching.

It is important to completely honest with your mortgage lender, unfortunately, too many homebuyers try to pull the wool over the eyes of the lender - this never works. In the end everything comes out in the wash - the more honest you are upfront the more options your mortgage lender will be able to review for you.

Did you know that most first time home buyers are usually unaware of the leg work involved in finding a good mortgage loan program? Typically most are unaware of details like escrow payments or private mortgage insurance, fixed rate loans versus variable rate mortgages and their respective benefits and drawbacks. A skilled mortgage lender will be able to explain these differences and show you a number of different options, including the option that may be right for you.

This has resulted in a large number of mortgage lenders entering the market with varying mortgage programs for people with different economic backgrounds and credit histories.

It is possible to obtain a mortgage loan even if you have poor credit; there are loan programs available for people with large down payments, small down payments and no down payments at all, its up to you to check all the mortgage lenders and what the have to offer before you actually apply.

By: Neale Morton

No comments:

Post a Comment