How to Choose A Mortgage Lender

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Buying a home is one of the most exciting milestones in our financial lives. When it comes to making this significant investment, finding the right mortgage lender (and loan) is incredibly important. In addition to gaining peace of mind throughout the process, you can save thousands of dollars when you make the right choice.

The first step in choosing the best lender for your needs is knowing what your options are.

Mortgage Lending Options

While many mortgage providers may seem like a one-size-fits-all solution, the reality is there are many pros and cons in who you choose to finance your home.

Conventional Banks

Conventional lenders, like larger banks, can offer many lending options to fit the needs of a homebuyer. However, it’s important to know the ins-and-outs of any special considerations when it comes to the specific terms of your loan. You’ll want to ask prospective lenders specific questions about your repayment options, potential payment penalties, and refinancing restrictions, before deciding if they are the right for you.

Mortgage Brokers

If you’re thinking of using the services of a mortgage broker, the convenience of this option has its appeal. However, it’s important to understand how this type of lender service works and if this is truly the best solution for you.

Unlike traditional mortgage lending, your mortgage broker is essentially a third-party finding a mortgage lender for you. While you may consider the ease of being fitted into a product a “pro”, many homebuyers prefer a more personalized experience and relationship with their lender, especially in such a significant purchase as your home.

Credit Union Mortgages

There’s a common misconception that credit unions are unable to offer common mortgage products to their members. The reality is that credit unions, like Call Federal, are not only able to provide mortgage lending options, but do so with competitive rates and personalized local service.

Choosing the Right Mortgage Lender for You

There is a lot to think about and consider when buying a home and finding the right lender is an important step in the home buying process. Here are some things you might want to think about when choosing who to finance your home.

Shop Around

Just like any major purchase, you want to make sure you shop around for the best option. This can be shopping your rates and closing costs. Shopping around for your mortgage lender will also include researching what specific loan products are available with each prospective lender, as well as understanding of their application processes and requirements.

Check Reviews

When it comes to business reviews, we often hear about what went wrong more so than what was right. That’s no different with researching a potential lending partner. What are other people saying? How was their experience? It’s important to do your due diligence to feel comfortable that your purchase is in the right hands.

Ask Questions

We cannot stress the importance of asking questions in your homebuying journey enough. Being an informed buyer can save you thousands. Asking about your mortgage process along the way can also help prevent “the unexpected” later on.

Other Considerations

Are you a first-time buyer? Have you served in the military? Perhaps the home you’re looking at is in a more rural area. There are many specific mortgage lending options to accommodate your needs and special circumstances. Once you choose your lender, they’ll be able to help you can make a more informed decision about which products are available to you, what best fits your budget, and what offers you the most flexibility in your purchasing process.

Once you’ve found the right lender for you, the next step is to research which mortgage loan options are best for you. We’ll discuss those options in a future installment of our Financial Insights blog!

If your home buying process makes it clear that Call Federal is the best fit for you and your family, we’d be delighted. Click here to apply today or stop by one of our convenient branch locations to get started. You can also call us at 804-274-1200. We look forward to working with you!

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