The Right Lender for You
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Usually, borrowers look at the interest rates offered first and other expenses involved in buying a house. It would also be wise to:
- Make a comparative analysis of fees and interest rates of at least six lenders making you an offer. This is when you ask them to give you close estimate as to how much cash outlay is expected from you – in short, a breakdown of expenses will be very useful at this time. You must also ask them about potential expenses which are not standard in transactions of this kind but could “appear” at
any time. Now is the time for you to use your gut feel when it comes to the lender. Do you think they are honest with you? or are they being evasive when you ask them questions regarding potential additional charges? - Think about your particular situation as a borrower. Bigger lending companies and banks don’t automatically mean they are better than smaller ones especially those with peculiar characteristics. There are lenders whose forte is in assisting people with a history of bad credit get a “new lease on life” (be eligible for credit once again) so to speak. Others specialize in helping people with small available downpayments.
- Scrutinize the different types of loans they offer and your lender should be adept at matching you with an amortization that is just right for your financial situation.
- Rate their customer service. Observe how they react to your questions and requests, this a test of their responsiveness and flexibility. If they don’t listen well to you now, while they are trying to get your business, then chances are, they will not be good at listening to you, once they get your business.
- Do a background investigation on them through the so called grapevine. You will definitely know everything about them from people who have worked with them. Just listen to what they have to say and then do your own evaluation.
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