Selecting the right lender - Factors to consider

Guest 0.10 Dollars($)

Should i focus on who advertises the lowest rate and forget the type of institution?

Sam · Last edited by Sam on Thu May 11, 2006 1:58 am

Hi Guest,

It is advisable that you should not go only after low rates; rather you should consider the type of institution you are dealing with. This is because the interest rate may change after 30 to 60 days. In case you prefer a longer lock in period then you will have to pay a higher interest rate. But whichever rate you agree upon, you should state it in writing to avoid any discrepancies later on.

You should first check whether your mortgage lender has a license or not. You can find it out by getting the annual report of the lending institution from the bank where it is sent. This will enable you to know if the services of the institution are satisfactory. You may contact the local office of the Better Business Bureau to find out whether their records are clean or you may send them your queries regarding the lender via the internet.

You need to check that you are not paying a large sum as hidden fees to make up for the low interest rate. No doubt increasing your savings may be the top priority, but you should also see that your lender is trustworthy and you don't lose by making the deal.

Hope to receive your feedback.

Regards

Sam

jameshogg · Posted: Thu Feb 09, 2006 11:31 am Post subject:

Advertisements do not carry all the picture. So, you should not believe on the words blindly while choosing a lender.

A mortgage is an important commitment and perhaps the biggest financial deal in the life of a common man. So, adequate precautions should be taken and queries should be made.

It's better to look for the reputable lenders or lenders with whom people known to you had satisfactory deals. But, here too you have to judge from your own angle.

Generally, when you look for a lender, check the interest rates, points, op-front fees and service provided by the lender and compare with others.

James

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