Choosing the right lender
So you have come to that point in your life where its time to
become responsible and buy a house. Maybe you are expecting a
baby or have outgrown your apartment. It may be that you just
want to realize the American dream. Whatever the reason, most
people start looking for a home without considering one important
part of the art of home buying, choosing a mortgage lender.
Imagine having a friend for over thirty years that you chose
off of the internet and didn’t look into very well. Choosing
a mortgage lender is like choosing a friend that will be a part
of your life for a very long time, and making the wrong choice
can cost you money each and every month you own your home. A potential
misstep can cost you thousands.
When you are looking for a lender it is a great idea to start
with a few recommendations from friends and family members. Your
real estate agent can also be a great source of information. Also
speak to the loan officers at your bank and credit unions as they
offer current account holders options that others may not receive.
As with any large purchase, you would then want to shop around
for the best and lowest cost on the interest rate and fees involved
in generating the loan. Some of these fees include origination
fee, discount points, closing fees and inspection fees. Make sure
that you include all of the various fees into your calculation
as well as the annual percentage rate that you will be charged.
This then gives you a more realistic expectation of who has the
best deal for you.