When purchasing a home, buyers face a lot of decision points that affect the amount they will spend for the life of their loan such as school districts, siding and one story or two. However, selecting a licensed mortgage lender will be the most critical decision for ensuring the amount buyers spend is not more than they can afford and that the experience is relatively painless. Buyers should consider these top three factors when selecting a residential mortgage professional.
- Rates:
Typically, the first question a buyer asks a mortgage professional is what are the current rates. It’s a good place to start but often won’t reveal the whole picture. Mortgage rates are determined by the 10 YR Treasury (10 Y UST) & Mortgage bonds (Fannie Mae & Freddie Mac)which provides most mortgage lenders with access to the same rates. However, the actual interest rates buyers pay will differ based on the amount of profit margin that is built in to pay for the lenders services.
Larger banks and internet lenders often advertise rates that make it seemingly easy to comparison shop. However, it is important to remember that each person’s financial situation is unique and will produce different loan terms. Speaking with a loan originator directly is the best way for a buyer to determine what rate will apply for their specific situation. Filling out an application and providing documents can be time consuming, but it is the best way for any buyer to ensure a full understanding of the interest on their home loan.
- Service:
Service is the name of the game in the mortgage business. Only sixty-four percent (64%) of mortgages in America close on their original contract date, according to the National Association of Realtors. Once a contract expires, buyers must rely on the seller to determine if they will extend the contract. The seller can also require a larger deposit and that the buyer pays any cost associated with the delayed closing. By working with an experienced residential mortgage lender, such as the RMLO’s at Rock Mortgage, buyers can rest assured that common mistakes will be avoided, uncommon issues will be addressed quickly and that there is a team of professionals working to get them into their home on time.
- Reputation:
It’s imperative that buyers do research prior to selecting a mortgage lender. A simple web search can reveal everything they need to know about any mortgage provider including if they are licensed and registered with the state. Google & Yelp have high standards for reviews and make it almost impossible for a company to create false reviews. Any well-established mortgage company or bank should have at least 10 reviews, and if not, it is okay to ask why. Buyers should check with the better business bureau and state agency who governs mortgage lending in their state, and avoid lenders with any unresolved complaints. Informed buyers get the best results.
- Yelp- www.yelp.com
- Google Reviews – www.google.com, search your local lenders business name.
- Better Business Bureau – www.bbb.org
- Texas Residential Mortgage Lender Verification – http://www.nmlsconsumeraccess.org/
If you’re comparing Mortgage lenders, we’re here to help. Rock Mortgage’s registered home loan experts can advise you further on which mortgage options are best suited for your individual needs. Call Rock Mortgage today at 832-230-3067 or online for a no pressure consultation. We’ll be in touch soon, and we look forward to working with you!
