Every good home purchase loan consists of three components: the lending company, the lending representative and the loan itself. Although it’s common to spend much effort looking for the best deal in town, the company and the representative have the ability to sweeten or sour any mortgage experience. Conventional advertising methods paint a rosy picture of the client, making it extra important for you to do your own research when seeking your loan.
Who you know
Friends and family with a recent home purchase loan are an ideal referral source. A satisfied borrower will be happy to tell you all about their experience when asked, but someone dissatisfied with the experience will tell you long before that. To be fair, make certain you account for the individual’s temperament. A friend who demands too much in any business interaction is one who even the most stellar of mortgage representatives cannot satisfy. On the other hand, if the same friend sings the praises of the representative, this is a clear place to begin your search.
Where you go
While various financial service businesses make reciprocal referral arrangements with mortgage lenders, don’t count out the opinion of these financial professionals during your search for a home purchase loan. If you have a solid relationship of trust with your banker or accountant, you have little reason to fear a bad referral. When you’re unsure of the validity of the referral, ask about the arrangement. An honest banker will always tell you whether they benefit from the transaction or if they are friends.
When you need it
An abbreviated mortgage process is not always ideal, yet you may not be able to avoid expediting it. When speed of closing is your primary concern, look for lending companies that work with the seller on a regular basis. In most cases, builders and real estate agents work with someone who can provide a speedy home purchase loan. Be careful choosing this option when time is not a factor because you may receive a better deal by taking the extra time to shop the competition.
What you need
A conventional home purchase loan is not always a practical option for individuals with a poor credit score. Rather than wasting time trying to fit the perfect credit mold, look for a mortgage specialist with experience making bad credit loans. In the end, it matters little whether you use a B-credit specialist or a prime mortgage lender who provides the B-credit loan. Either way, you end up with the same mortgage and roughly the same interest rate. Looking for someone who specializes in your situation can save time and potential headaches.
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