- Compare different lenders and loan options. You should shop around and contact multiple lenders to compare their loan rates, fees, terms, and customer service. You can use online comparison tool to see different offers from various lenders. You can also ask for a loan estimate from each lender, which is a standardized document that shows you the key features and costs of the loan.
- Check the lender’s reputation and reviews. You should do some research on the lender’s background, history, and customer satisfaction. You can look for online reviews and ratings from sites like Better Business Bureau, or Consumer Financial Protection Bureau. You can also ask for referrals from friends, family, or real estate agents who have worked with the lender before.
- Choose between a local or a national lender. There are advantages and disadvantages to both types of lenders. A local lender may offer more personalized service, local knowledge, and flexibility. A national lender may offer more options, lower rates, and faster processing. You should weigh the pros and cons of each type of lender and decide which one suits your needs and preferences better.
- Consider your credit score and financial situation. Your credit score and financial situation will affect the type of loan and lender you can qualify for. If you have a good credit score, you may have more options and lower rates. If you have a low credit score or a non-conventional income, you may need to look for a lender that specializes in FHA loans or other programs that cater to borrowers with less-than-perfect credit or income.
How to choose the right mortgage company when buying a property
