There are so many things to keep in mind before buying a property that you have probably never considered that the mortgage provider was one of those things. Here are some tips for you to keep in mind.
A mortgage is a huge financial decision that will potentially affect your budget for the next twenty-five years or more. Focusing your attention on finding the right property or comparing different loans is just one part of the deal. You also need to pay attention to the lender: not only for the conditions they offer on the mortgage itself but also for the customer service they provide.
When choosing a mortgage provider, there are 3 key points you need to remember:
1- Some real estate agencies work with lenders
This might seem convenient, but keep in mind that they have a business relationship from which they both benefit and it might not provide you with the best financing option.
2- There are affordable online providers
Some mortgage providers claim to offer lower rates because by operating online, they save money. This sounds good, but make sure you also consider what customer service they provide afterward. Remember that you will be paying your mortgage for at least 25 years.
3- There is a difference between mortgage brokers and mortgage providers
Pay attention to how a company describes the service and look at the terms and conditions. Never fill out an application until you have all the information you need about the loan and the lender’s reputation.
As a mortgage is a huge and long-term financial decision, you need to take the time to do your research and minimize your risks as much as possible.
Ask for referrals, you might have friends or family that might have or might know someone that has financed their property. You can also check with realtors, accountants, attorneys and other professionals.
Take the time to do online research and see what information you can find about the lender. Also, it is a good idea to read their official website and read their mission statement, the service offered, contact numbers and history of the company.
Compare different providers before you choose one. A good way to do this is by asking for a Good Faith Estimate, a document that provides you with all relevant information about the loan, including interest rate, credit check fees, closing costs, property taxes, fees and the number of your monthly payments.