Minimize the Confusion: Part 2 The Mortgage

Another integral part of the home buying process is of course the loan. Unless your dear great auntie left you a big bag of money, most buyers find it a necessity to apply for a loan to mortgage their new or next home purchase.

Getting pre-qualified for a purchase amount is so very important. As I just described to a client this week… you know when you go to the sale rack at your favorite store and find that perfect outfit you have been looking for… only to find you looked in the wrong size and the one you want won’t fit… well it is important to find out what your “size” is for your home search. Always get pre-qualified before you begin the process. I will focus more on the qualification process in another article, but for this essay, I wanted to provide some good information on making a good choice in your lender.

There are many good options out there for both lenders and loan programs. Buyers find good options with their local banks, credit unions and mortgage companies. They are not all the same and to get some better insight I asked Mark Harrington of Horizon Home Mortgage, LLC to provide us with some good tips in your mortgage company search. These are his recommendations.        

HOW TO CHOOSE A MORTGAGE COMPANY: 

REPUTATION – You need to trust your mortgage professional, because this will be one of the largest financial transaction in any person’s life. Suggestion… Ask your Realtor for a recommendation, they know better than anyone who are the trusted professionals. Also, check to see if they are licensed in the Nationwide Mortgage Licensing System (NMLS) and have a clean record. 

PRODUCTS – A good mortgage company should have a wide range of loan products to fit your specific needs and goals. Suggestion… Use a Mortgage Broker instead of a Bank, as they typically have many mortgage lenders to find the right loan product for you.

RATES & TERMS – Due to the extremely competitive nature of the mortgage industry there are endless ways to compare rates and terms so that you get the best rate and term for you. Suggestion… Call around and/or compare online rates.  However, do not just compare rates. You must also compare the terms of the loans or you can be disappointed (i.e. Points, Closing Costs, Variable vs. Fixed, Fully Amortized, etc).

FACE TIME – After all your research above you will want to make sure you meet your mortgage professional in person. Personal contact is the best way to determine the quality of customer service you can expect. Suggestion… Stay away from Online Lenders and Lenders you have to deal with over the phone. This can be a complicated transaction and you don’t want to be in the thick of trying to close on your Dream Home and not be able to reach your Mortgage Professional. Also, ask them if they typically attend their closings, as questions/issues can arise that need to be resolved at the closing table.  

As always I am happy to serve as a resource. My firm works often with many good and qualified lenders and we are always happy to provide you with names and recommendations. Our recommended professionals page is also a good place to start. Ask your friends, family and co-workers for names of professionals they had good experience with. I always recommend you find someone who can be easily contacted when you and your Realtor need them to complete your transaction. Happy Hunting!!