Perhaps you’re excited about the possibility of purchasing your first home, or you’ve come across a house that you think will make an excellent investment property. Maybe you’re eager to refinance your existing mortgage to snag a lower interest rate to lower your monthly mortgage payment. Or perhaps you want to access the equity in your home with a cash-out refinance to fund home improvements, educational programs, or a new business venture. Whatever the reason that you’re interested in getting a mortgage or refinancing, you’ll need to find a mortgage lender to work with. Do you know what to look for in a mortgage lender?
What to Look for in a Mortgage Lender
When you’re in the market for a mortgage, you don’t simply want a loan; you want the best loan for your situation. Selecting the right mortgage lender gives you a valuable ally who can educate you about the possibilities and guide you through the process of selecting the right mortgage product. Let’s review what to look for in a mortgage lender:
Competitive Interest Rates
As Investopedia explains, the interest rate is the amount a lender charges you for the use of their assets. It is the cost of having a debt, and it is generally expressed as a percentage and applied to the amount of principal still owed. Basically, if your interest rate is higher, it will cost you more to borrow money. In contrast, a lower interest rate means that you will have to pay less for the privilege of borrowing money. Since the interest rate that you secure can have a significant impact on the total cost of your loan, you’ll obviously want to find a mortgage lender who can offer competitive rates. However, that’s far from the only quality that you’ll want to consider when choosing a lender.
Ease of Use
When discussing software, ease of use is a term that refers to how intuitive and natural the experience of utilizing the software is for the user. While the Washington Post reports that digital tools are increasingly being used to handle loan applications, this concept is worth considering in the real world as well. How easy it is for you to work with the lender? Would you be comfortable working with an online lender who only offers minimal interactions in a virtual setting? Do you prefer a lender with a physical office where you can meet with your loan officer? Would working with a lender with local knowledge make your experience smoother?
What is customer service? While the specifics might vary by industry, The Balance offers a useful definition that applies in almost any circumstance: Superior customer service is the ability to consistently exceed expectations.
Selecting a lender who prioritizes excellent customer service will likely make your experience less stressful and more rewarding. How can you judge the customer service offered by a mortgage lender? While their reputation can certainly be a good indication, The Simple Dollar suggests that you contact the lenders you are considering to form your own impression. After your conversation, ask yourself questions like the following:
- Was the lending professional pleasant and responsive?
- Were they willing and able to answer your questions in a manner that was both thorough and understandable?
- Did they promptly return emails and phone calls?
- Could they provide specific details about important factors like timelines, loan terms, and fees?
- Did you feel like they really listened to your questions and concerns?
- Did they seem knowledgeable and trustworthy?
Informed Loan Officers
When it comes to professional services, good intentions are a good start, but they aren’t enough. It’s also vital that a lender possesses accurate information and the expertise to use it effectively. A home is a major investment, so when seeking a mortgage, you want to enlist the aid of a knowledgeable professional who can provide useful guidance. As Digest Report indicates, it’s smart to look for a mortgage lender with loan officers who can offer a wide range of possibilities and explain the pros and cons of each so that you can select the option that best fits your needs. The lender should be attentive and able to go beyond generic, cookie-cutter solutions to address your specific concerns.
At PrimeLending of Springfield, Missouri, we believe that buying or refinancing a home should be an easy, rewarding experience. That’s why we work closely with you and do our best to keep things simple and transparent. You can rely on us for valuable insights, clear communication, timely responses, and rapid results. Contact us today to schedule a consultation.