by John Evan Miller ,
Imagine finding your dream home at an incredible price that is well below market value. The first thing you do is look for a lender that will provide you a great interest rate while also providing the best services possible. How, exactly, do you choose the right lender?
Reputation. Reputation. Reputation.
One of the easiest ways to determine if a lender has a good reputation is through word of mouth. If you have friends or family members that have purchased a house, ask them about their experiences with their lender. Word out mouth is often one of the quickest and most accurate ways to determine information about lenders you are considering.
After obtaining detailed information from family and friends, it is time to move your search online. If you have a list of lenders that you are considering, then utilize search engines to obtain even more reviews on the lender. Simply type in the name of the lender followed by “reviews.” Instantly you will find more than enough information to help you determine whether the specific lender has a great reputation or a bad one.
Keep in mind that public exposure through commercials and other forms of advertisement is not a good resource. Always conduct deeper research before pursuing a lender.
After narrowing down your list of lenders to ones with good reputations, it is time to narrow your list down even further. One of the easiest ways to compare lenders involves comparing the interest rates. Aside from finding an incredible home well below market value by searching listing services like ForeclosureDeals.com, interest rates form the second best way to save money. Therefore, considering the interest rate when selecting a lender is the one of the most important things (second to lender’s reputation) to consider in your search for a lender.
Let’s assume that after checking the lender reputation and interest rates you have narrowed your search down to two lenders. It is now time to consider the approval process. Which lender has the easiest approval process? The lender with the least number of hurdles to jump through can have you approved for your home a lot quicker than ones with more rigid lending standards.
Some lenders may provide you a pre-approval immediately, which could drastically cut down on the amount of time it takes for you to move into your dream home. Also, other lenders might help with closing costs, or provide other, more flexible loan options to meet your needs.
In the end, choosing the right lender involves determining the lenders reputation, obtaining the best interest rate, and selecting the lender that can approve your home loan with the least number of hurdles. Do you research and select a lender today!