For most would-be borrowers, the challenge is not in finding a mortgage lender, but in sorting through the throngs of banks, online lenders, mortgage brokers and others eager to take your loan application. How do you choose which one will offer you the best deal, and competent customer service to boot?
First shopping center is your current bank or credit union where you already have a checking or savings account and ask what types of mortgage deals they offer current customers. And be sure to ask friends and family members for referrals to loan officers and mortgage brokers who gave them good, professional service and helped them find the most competitive loans.
Always keep in mind that, not only are you buying a home, you are buying a very expensive financial product -- a mortgage loan. In fact, if you were to take out a mortgage for $300,000, at 4.25 percent interest and keep that loan for the full 30 years, you would end up spending nearly $345,000 in interest alone!
You deserve to be treated as a very special customer when you're spending that kind of money.Talk with your real estate agentAlways ask your real estate agent for recommendations to good lenders. Even though some brokerages have their own in-house affiliated mortgage lending businesses, good agents will not limit their referrals to just that in-house lender. And because agents direct business their way through boom times and slow times alike, smart loan officers take good care of the clients sent their way by local real estate agents.
Unfortunately, no matter how much thought and research you put into choosing the right source for your mortgage, you may eventually end up having your monthly payments handled by an entirely different institution. The right to "service" your loan, that is to collect payments and manage your escrows for property taxes and homeowners insurance, is often sold to other institutions shortly after the loan has closed. Borrowers have no say in the matter; you simply will receive a notice through the U.S. mail from the old and the new servicing companies directing you to send your payment on to a new address. The terms of the mortgage itself will not change.
Even though you may not be able to choose a partner for a long-term mortgage relationship, it is well worth your time to shop carefully for a lender who will patiently explain all the terms of various mortgage products to you, handle your application competently and efficiently, and, not least, who will offer the most competitive loan terms.Although we are located in Raleigh, North Carolina, we offer unparalleled mortgage and refinance service to clients throughout the Great State of North Carolina!
