When house hunting, there are a lot of different decisions that you need to make. One of the most important and critical decisions you will make would be choosing which lender to work with. There are tons of lenders out there, ready to accept your loan application, however just because they will accept it does not mean they are looking out for your best interest. Since you will be the one left with this mortgage for many years down the road, it is important to find a lender for your specific needs.
There are many benefits of working with a broker, a broker can save you a lot of time by doing a large portion of the work, when it relates to finding lenders. However, keep in mind some of the drawbacks of this. Brokers are able to earn their profits by making deals between you and the lender. The wrong match, could give the broker a high profit, but not the right mortgage for you. So make sure that you do your homework and research as well to make sure that you are getting the best deal for you!
You will also need to find out what type of lender you desire. Do you want to work with a large company, or a small company? Would you want the lender to actually remember your name? This means you might want to go towards a small lender. However, if you want the best interest rate, then a large lender might be a better option. Research, research research!
A broker is not the only way to find a lender. You can also ask friends, family or coworkers and ask about their experience. At least this way, you are asking people you trust and will have your best interest in mind.
Another great option is to ask your real estate agent. A good agent will not limit their recommendations to just their in-house lenders. Use this to your advantage and ensure that the lender you work with is also recommended by your real estate agent as well.
When hearing about a lender, whether this is recommended by a family member or real estate agent, it is important to do a background check as well. Find out what their past clients though of them, and check out the online reviews as well. Try to learn as much as you can, so that you can avoid disasters down the road. This might seem very intimidating, and scary, but just ensure that you are doing as much research as you can to make the right choice for you!