Choosing a Lender

It seems like every time consumers turn on the TV or radio, log onto the Internet, open their mailbox or even pick up their phone, a mortgage lender is begging for their business. There are literally thousands and thousands of mortgage lenders across America. How then do people shopping for mortgages decide which lender is right for them?

Many consumers feel comfortable getting their mortgage loan from a bank they already do business with. This can be a good option since the customer is already familiar with the institution and will have a pre-established feeling of trust.

If you use the Internet to compare different mortgage lenders, do so with caution. If you are unfamiliar with a company, make sure you have sufficient information about them from neutral 3rd-party sources. Be especially wary of any lender who contacts you, rather than the other way around. Some lenders purchase contact information for the purpose of preying on vulnerable consumers with heavy debt or other financial problems. Unfortunately, many individuals who report having been the victim of a mortgage loan “scam” were contacted in this way.

Your real estate agent can be a good source of referrals to reputable lenders with whom he or she has personally worked before. They will likely be able to give you some suggestions, and with a little follow-up, you can find a lender with whom you are comfortable.

One way to determine if a lender provides good customer service is to contact them and ask a few questions about their products and services. A good lender will have plenty to offer, and be happy to take the time to answer your inquiries.