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How to Pick a Mortgage Lender

Author: DirectMortgage Total views: 5 Word Count: 505

Do a search for "mortgage lender" in Google and you'll get more than four million results. How then do you pick the right place to obtain your home loan mortgage? Does it matter where you get your mortgage from? What factors should you consider when comparing lenders, and how do know if the lender is legitimate? This article affirms the importance of choosing wisely your lender, and suggests some key points to consider when choosing an online mortgage lender.

First, why is it important to choose your lender wisely? The primary reason, is of course, cost. When you take out a mortgage, you are incurring a significant monthly payment and creating a large debt load. Therefore, you'll want to look closely at a loan's cost. In considering cost, you'll need to look at more than just the interest rate. What additional fees are there and how much are they? For example, there could be a loan origination fee, underwriting fees, an appraisal fee, etc. These are taken into account and combined with the interest rate to come up with the Annual Percentage Rate, or APR. Hence, the APR is the most important number to look at.

When you have a tight time frame within which to buy a home, a lender's speed becomes important. One lender may be able to underwrite the loan in three days and fund it in one more day while another lender may take a couple of weeks or more. Don't ignore this important aspect of lending.

The level of convenience offered may also play a role in who you choose. For example, can you upload your documents over the internet or will you have to mail them? Will you be able to apply for and choose the loan completely online, or will you have to talk to a person? Will the lender send a notary to a place of your choosing, or will you have to drive to a Title company's office?

Once you've narrowed down your list of potential lenders, you may want to verify that the company is licensed or registered with your state by checking with your state government. Often this can be done online through the state's website. One of the first places you might look on the website is the area for the Banking or Financial Institutions division or agency. You can also go the Contact Us page to find a way to contact Customer Support.

Besides seeing if the lender is able to provide loans in your state, you may want to verify that it has a valid business license in the state where its corporate headquarters are located. This can also be done online.

In summary, here are the points to consider when picking an online lender: Pricing (remember to look at APR), speed, convenience, and legitimacy. Purchasing or refinancing a home is a significant decision. Be sure to consider these points as you make it!

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About the Author

If you're wanting a Utah mortgage or a Salt Lake City mortgage, go to www.directhouse.com.

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