Choosing your Mortgage Lender
Choosing a mortgage lender might seem like an easy task if you go with whoever quotes you the lowest
rates and fees. At first glance, that seems like a financially rewarding strategy. Unfortunately, lowest
rates and fees cannot make up for poor service or a lack of transparency.
Interest rates change daily, you would need to get all mortgage rate quotes on the same day for an
accurate comparison. Using an advisor who can do the comparison shopping for you with an array of
lenders saves you time, but most important money. The mortgage broker can do exact comparison,
finding loan products and mortgage rates, so you do not have to do work yourself with multiple lenders.
Brokers have access to many wholesalers and provide more specialized product.
Banks
Banks tend to offer less products. If they do not offer the loan that’s best for you, they may not tell you
about it, or even know about it. A conservative bank may not approve you, even if you are a good
candidate for a mortgage loan. In addition unlike banks, the broker’s compensation is clearly disclosed
on your closing statement.
A good mortgage lender will help you understand your credit report, will give you advice on improving
your credit score, choosing the right loan, and ensuring that you have enough money left over for other
important goals.