small lender
How to Choose the Right Mortgage Lender and Loan
Posted by New Home Resource on June 26, 2017 in
When it’s time to sit down and figure out how you’re going to finance the home you really want to buy, it’s also a good time to remember a very important real estate rule of thumb: Just because a mortgage lender has a household name doesn’t mean they’re going to be the best choice for your mortgage loan. There’s a way they got to be a household name, after all – by advertising. And who do you think ultimately pays the cost for that? Yep. Their customers – through the higher rates and fees they charge to cover that expense.
(Of course, some mortgage lenders became household names by doing some not-very-savory transactions with their customers, too. But unfortunately, it’s also true that people often remember the name better than the deed . . . so, yeah, there is that.)
And, if you’re of the opinion that those “discount” mortgage financing options you see online are saving you money because they don’t have the ‘brick and mortar’ costs associated with traditional mortgage lenders, you’ll want to think again. The largest online mortgage lender has over 8,000 employees manning phones and populating cubicles in office buildings, all getting loans closed. (They have to – because that’s a lot of brick-and-mortar to pay for!)
So if you’re in the market to get the best deal on a mortgage loan for your needs – it’s a good idea to maybe gather some information (like a Loan Estimate) from the ‘great and powerful wizards’ – but then we recommend you go do some exploring on your own for the ‘little man behind the curtain.’ Because more often than not, it’s going to be the small, local mortgage lender who is going to be working harder on your behalf to give you the best service and save you money on your loan.
Knowing the difference between mortgage lenders and how they work – as well as how they earn their fees – is a critical part of making the right choice, too. There are different regulations that govern banks and mortgage banks, vs. mortgage brokers.
Here in Las Vegas, one locally owned mortgage broker is helping to unravel the ‘mystery’ behind mortgage loans with a series of informational videos that make it simple to understand. Premier Mortgage doesn’t expect borrowers to be experts about mortgage loans, that’s their job. But they do make an effort to help people understand how important it is to shop for a loan with more than one mortgage lender – and what exactly to look for when comparing the numbers, so they can make the best choice themselves. (How to Discover What You Don’t Know About Getting a Mortgage.)
One other important thing to remember about getting a loan: Timing is critical for a borrower’s mortgage transaction. If a loan is delayed due to errors or a Loan Officer’s failure to request and submit proper documentation on time, the buyer may end up paying more money, not have a place to live in the interim, or may even lose the deal completely. And that’s no way to start off the “Happily Ever After” in your new home!
Your Realtor® can be instrumental in helping you make the right mortgage loan choice – and the right Realtor® will recommend that you shop around with several mortgage lenders before making a decision. (Remember, simply filling out an application – or getting a “loan pre-approval” from a lender does not commit you to using them.) Making the wrong choice for a lender can literally cost you thousands of dollars more out of pocket than you need to spend. And wouldn’t that money look better in the new furniture for your new home? We thought so, too!
New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for property management, a newly built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to provide the service you’re looking for. Please contact a New Home Resource Realtor® today at 702-365-1000 or visit www.newhomeresource.com. Broker Joanna Piette, and agents Denise Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, and Kathy Paterniti are all here to help!