Finding the right mortgage for your new home is a big decision, so here are five factors to help you understand which company will work best for you:
1) Fees and Interest Rates
You should always make sure that the fees are appropriate and the interest rates are affordable. Nobody wants to pay fees that they shouldn't be paying or have an interest rate so high that they can't afford the mortgage payments. Also, do not be afraid to ask your lender to explain anything that you do not understand on the good faith estimate.
2) Ability to Meet Your Needs
Research whether or not the company has programs that cater to your individual needs, such as low credit scores or low down payment programs. You will need to know whether or not you have poor, good, or excellent credit, as your score will ultimately determine whether or not the mortgage company will give you a loan.
3) Variety of Loan Programs
A good mortgage company will have programs for people that are considered low and high risk. You can check with several different companies to see if they provide helpful loan products such as FHA, VA, and rural development loans. A good mortgage company should also be able to tell you whether a government or conventional loan is right for you.
4) Level of Customer Service
When talking to mortgage companies you should evaluate how the lender treats you as you go through the application process. Do they make you feel comfortable and at ease with providing them your personal information? Are they rushing you and not answering all of your questions? You should always go with your intuition and never choose a mortgage company just because they say that you are approved.
Typically if you get one mortgage company approval, then you will probably be able to get approval from another company, so do not settle on a mortgage company who does not make you feel good about getting a loan from them.
Find out whether or not the company is reputable. One great way to select a reputable mortgage company is to get referrals from family, friends, or co-workers who have worked with companies that you are thinking about doing business with. You can also search the internet to find out if there are any consumer complaints or lawsuits pending against mortgage companies so you will know who to stay away from.