How to Choose the Right Lender: Top 10 Questions You Need Answers To Before Deciding

For most, buying a home is the largest and most important purchase of their life. Choosing the right lender is just as important as finding the right neighborhood. It’s not just about interest rate and fees. Below are ten questions all homebuyers should ask their lender before choosing who they trust with what could very well be the largest purchase of their life.

1. Are you local? – Local lenders have to be more accountable as they live and work in the communities in which
   they support. As a homebuyer, a lender that is accountable to you and your Realtor is your #1 priority. Your
   referrals are the source of future business. It matters to a local lender that they close your loan on time and
   provide great service. To a non-local lender, you may be just a number.
2. Will you meet me in person to discuss my pre-approval and to review my loan application paperwork once Iam under contract to purchase a home? – If it’s important to you, you should easily be able to meet in person with your loan originator. On the other hand, if you prefer to use technology to complete your loan process from afar, then make sure your lender is equipped to handle this. You should be able to work on your loan application online, and be able to electronically sign and upload documentation to a secure portal, if you prefer.
3. Do you process, underwrite and fund your mortgage loans in-house? – By having everything in-house, a lender has more control of your financial transaction. This allows the lender to consistently give the best possible service and ensure your loan closes on time. Not closing on time could costs you thousands of dollars and possibly even the home of your dreams.
4. Can you close in 30 days or less? – In today’s highly competitive real estate market, a quick closing is sometimes the difference between getting your offer accepted and not getting your offer accepted. Be sure your lender of choice can close your loan in 3-4 weeks.
5. Will you give me multiple loan options so that I know not only what I am pre-approved for, but also understand the approximate monthly payment and estimated closing funds needed for each loan type? – There is no such thing as a one-size-fits-all mortgage. Mortgages need to be tailor-made to match a homebuyer’s financial needs, wants and goals. Having a financial discussion with a trusted mortgage professional is key to getting the right mortgage. There are various ways to structure mortgage financing. Understanding how a sales price, down payment, and interest rate will affect your monthly payment – or how much cash is needed at closing – is crucial knowledge to have prior to making an offer on a home. The “right” lender will make sure you know your options and that you purchase a home that is within your budget.
6. Will someone from your office attend my closing? – Closing day is a special day, and it’s also a time that many pages of documents need to be reviewed and signed. A lender who is willing and able to attend their clients’ closings brings a level of comfort and service that is unmatchable when compared to lenders who cannot and/ or will not attend their clients’ closings. Whether it’s your loan originator, or someone from their office that you worked with, it’s a great feeling to have someone from your lender’s team at the closing.
7. Are you a reputable lender that has worked with many Realtors in our local market? – In today’s highly competitive market, who your lender is matters to the seller/seller’s real estate agent. In many cases, it is the difference between getting your offer accepted or not. The Realtors who represent sellers know which lenders have a reputation for getting loans closed on time versus those that do not. If you choose a lender who is either unknown in the market or does not have a good reputation, your offer is not likely to be viewed as favorable by the seller when compared to similar offers where the lender is known and reputable.
8. Which types of technology do you offer to make the mortgage process more streamlined? Technology will be extremely important throughout your mortgage loan process. You may want to ensure that your lender offers the ability to electronically sign forms and to securely upload documentation to their website – if these capabilities are important to you. A mobile app is a huge plus, as well as the ability to generate and print pre-approval letters on your own.
9. How accessible will you be to me during the process? – Before you choose a lender, be sure you discuss accessibility. You may have certain circumstances where you need your loan originators input during times that do not fit into the normal business day.
10.  Tell me how you communicate with your clients during the mortgage process. – As a homebuyer obtaining a mortgage, there will be many steps to getting your home loan approved. A good lender will have systems, processes, and the technology to communicate proactively with their clients throughout the process to ensure clients stay informed throughout the transaction. Regular email or phone updates will help make your loan process go smoothly.

Are you shopping for home lenders, or ready to submit a mortgage application? Contact a Waterstone Mortgage loan originator near you. We are happy to answer your questions and help get the process started.

This article is presented to you by Waterstone Mortgage. Please click here to read the full article.