When you take out a mortgage you are transferring the interest in the property to a private lender mortgage as security for a loan of money. A mortgage is technically not debt but the mortgage lenders’ security for a debt. Simply put the lender gives the borrower a loan and the borrower gives the lender the property as security.
Finding the right private mortgage lender is very essential; it makes the entire home buying process so much easier to handle. You will find numerous resources on the internet but will have to do some serious research to find the right person. Making the right selection in terms of mortgage lenders has a bigger impact on your purchase of a property than you may realize. You should read the tips provided in this article to help you make the right choices.
Your family and friends are a very good resource, the ones who have already had the experience of selecting mortgage lenders and buying a property can give you advice based on personal experiences. Ask them how they selected the lender and analyze the positive and negative aspects of each person’s experiences. When you have gathered your information you will have a pretty good idea about avoiding mistakes other people made.
Realtors are also a good source being closely related to the property field; talk to the person through whom you are buying your property, he/she will be only too glad to help since you are giving them a sale and a commission!
Be organized – prepare a spreadsheet with all the information you gather about each lender, you will need to conduct personal interviews to assess each one on your list. Never take anyone else’s word for granted, good as it may be. Input all the data relevant to your purchase of the property including the mortgage amount you need, fixed mortgage and variable mortgage rates, interest rates, application fees, and other charges and closing costs.
If necessary meet with the mortgage lenders several times, it is business and they won’t mind. You have to knock people off your list as you evaluate each lender and find them wanting. You are in effect developing a shortlist that should be pared down to no more than 3 finalists.
When choosing a lender from an online portal make sure you receive in the mail a document in writing, specifying the terms and conditions of the mortgage, properly signed and stamped.
If you go through a mortgage broker (they are always affiliated with the lenders) The broker you choose should be a Certified Mortgage Broker, trained and certified in all areas of lending who can provide the best service in finding the right mortgage lender for your needs.
Ultimately the final decision will rest with you, if your gut feeling about a particular lender is not good drop them without hesitation, you will in all probability be right. Make sure you visit the lender’s office at a busy time of day to gauge the level of activity and observe the kind of service they provide.