A loan company is an institution that will lend you the money you need to buy a property. It will be responsible for charging you with monthly quotas until you’ve finished paying for it; and it will own your house, maybe even having the right to take it away if you fail to pay until it’s completely yours.
That’s why picking a mortgage lender will always be one of the most important steps you’ll take when buying a house. The chances are you’ll spend decades with the company you choose, so it’s important to know what you can expect from them and which ones fit your needs better.
First, you need to know what kinds of institutions make home loans. As their natures and policies are different, some of them might not have what you look for. However, picking between one or the other is mostly a matter of preferences and opportunities to save money, because all loan companies must be regulated by the 2008 Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), which mandates that all of them must be registered and pass qualification requirements.
The National Mortgage Licensing System and Registry offers a searchable database to look for companies you can trust. This guarantees that no matter which lender you choose, your mortgage should be safe. Now that we’ve made that clear, here you have the top 5 tips to choose your loan company:
Know Your Options
You can pick among banks, credit unions, private lenders and government institutions to get your mortgage. Some private lenders, such as Intercorp Mortgage Solutions, offer home loans at the same time they offer their expertise to give you the best options according to your needs. Many people go to them because they usually have a more personal customer service approach and they tend to give loans to people with low credit scores or special circumstances.
Credit unions, on the other hand, typically offer lower interest rates than the big banks, but you have to be a member to apply to them. Search on the Internet which credit unions you’re eligible to join and explore their offers.
Government institutions such as the FHA are also good for these circumstances or people with fewer resources, or first-time buyers. If you’re a veteran, for example, you can be eligible for Veteran’s Administration home loans. Always remember to explore! There are many options out there, and you’re most likely to get a good deal if you do it. This brings us to our next tip!
Shop Around and Compare
Many people tend to stay with the first mortgage option they find, but it doesn’t necessarily mean it’s the best one they can get. Before picking a mortgage company, stay updated with the interest rates of the housing market and remember that different institutions can offer varied rates. You can actually save thousands of dollars by doing this; because even if it doesn’t look like it, there can be a big difference between a 3.00% and a 2.75% interest rate.
You can also shop around to find the lowest lender’s fees and the cheapest discount points. The more you search, the more certain you will be that you made the right choice for your financial circumstances. Knowing the market will also give you leverage to negotiate better deals with lenders.
Decide What Kind of Lender You Prefer
Perhaps you feel safer with more personal customer service, or maybe you don’t mind big corporations. Define if you prefer a lender that knows your name and circumstances. If that’s the case, then you should probably choose a small, private loan company.
However, if you care more about getting the best interest rates and a wider range of options, then, by all means, go big! As we said before, you’re probably going to stick with your loan company for a long while, so it’s better that you feel comfortable with it.
Don’t be afraid to ask everything you need to know before making a choice! Ask for the company’s plans, options, interest rates, application fees, payment methods. You shouldn’t leave anything behind, so you can compare all the ups and downs of every option you find.
And it’s not only about asking what you want to know about the mortgage policies. Do some research about the company’s reputation as well, ask your friends if they’ve worked with them or if they know anything about them. Do background checks and get the names of past clients, so you can contact them and ask them how it went. Don’t trust a lender that doesn’t want to give you information on other clients.
Cutting through a sea of options can be especially challenging, but what’s most important is to find an institution that you can trust. Real estate agents and mortgage brokers can also help with this.
Rely on a Mortgage Broker
Organizations like Intercorp Mortgage Solutions are here to help you find the best option for you. It’s always important to do part of the research on your own, but you should always hear the suggestions of people with years of experience in the housing market.
Find a company that works specifically within your state, that way you’ll know they’re experts in the area, and they probably know all the best deals out there. Let yourself be guided, brokers can help you save time, money and effort, and they can be the perfect connection between your lender and you.
With more than 10 years of success and experience, we want to find the best opportunities for you and your family, as well as help the communities with great needs and limited resources. At Intercorp Mortgage Solutions, we focus on giving you a wide variety of options and understanding each one of your needs. If you want more advice regarding how to pick the best loan company, give us a call. We’re right here for you!
Intercorp Mortgage Solutions
Phone Number: (305) 517-5633