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How to Choose a Mortgage Lender
Posted By Ron On April 13, 2011 @ 1:02 AM In Mortgages,Real Estate | Comments Disabled
A mortgage lender is typically a bank or other financial institution that issues mortgages, though it could also be an individual who “totes the note.” Traditionally, home buyers looked for a mortgage lender after they had found a house to buy, but today’s savvy home buyers begin working with a lender before looking at properties. It’s a good way to avoid my 10 First Time Home Buyer Mistakes !
Lenders will tell you exactly how much home you can afford under their guidelines and how much they’re willing to lend you based on your credit score (Get your free credit score at GoFreeCredit.com ). Once you know how much home you can afford, you can shop for a house that won’t blow your budget .
Nothing makes a seller more nervous than a contingency clause enclosed inside an offer to buy. Sellers almost always feel more comfortable when a buyer has been preapproved for a mortgage  loan. Another advantage to the buyer … buyers who have been preapproved may have more leverage in negotiations with the seller. You’ll also stand out if several other buyers are bidding on the home you want because you can set an earlier closing date without having to wait on an approval process to run its course.
As you look for a lender, try to find one that offers the best combination of the following factors:
Work only with lenders with a great reputation and who demonstrate a sincere commitment  to helping you through the process. If it feels like a lender just wants your money, move on. Another important point, how is the lender’s “follow-up?” Do they return your phone calls? Do they dodge your questions?
Virtually all lenders charge an origination fee (generally 0.5–1% of the principal) to cover the expenses they incur to assess your credit score  and process your loan. Lenders who charge no origination fees usually have higher interest rates.
Since YOUR interest rate will depend on your own personal situation (credit score , income, history, etc), don’t choose a lender based on its advertised rates. Why? The rate you receive will likely differ from those advertised rates. A better choice is to choose a lender with realistic rates that are also competitive with other lenders.
Lenders you consider should specialize in the specific type of loan you want and be willing to look at your personal financial situation under a variety of different loan options.
Make your choice wisely!
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 10 First Time Home Buyer Mistakes: http://www.thewisdomjournal.com/Blog/10-first-time-homebuyer-mistakes/
 GoFreeCredit.com: http://www.gofreecredit.com/r/4d8948948e/?subid=
 budget: http://www.thewisdomjournal.com/Blog/go/budget.php/
 mortgage: http://www.thewisdomjournal.com/Blog/mortgage-basics/
 It’s True! You Can Get Up To FIVE Offers In FIVE Minutes With LendingTree.: http://www.thewisdomjournal.com/Blog/go/lending-tree.php
 Lending Tree: http://www.thewisdomjournal.com/Blog/91-reasons-im-glad-i-used-lending-tree/
 Mortgage Search 123: http://www.thewisdomjournal.com/Blog/let-companies-fight-over-you/
 commitment: http://www.thewisdomjournal.com/Blog/?p=213
 credit score: http://www.thewisdomjournal.com/Blog/go/myfico.php
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