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 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.