What Makes a Good Mortgage Lender?

 

 

Getting a mortgage is one of the largest financial commitments that you will ever make. That’s why it’s so important that you choose the right mortgage lender for your personal circumstances.

Borrowing a large amount of money can be scary. You’re signing a legally binding contract that requires you to make regular repayments for the foreseeable future. Failure to meet your repayment requirements can lead to legal troubles that are even scarier.

When you’re finding the best mortgage lenders in Phoenix or your local area, there are a few different factors that you should take into consideration. Whether you’re a first time buyer or this isn’t your first mortgage, keep an eye out for the following things when you’re choosing a mortgage lender.

 

Detail Oriented

Mortgages are complex. Choosing a mortgage lender who pays attention to the details is helpful to prevent confusion or errors in the process. A true professional can not only handle the base-level lending process but can help you discover other ways to save, for example, a good lender could tell you if you are eligible for special government programs that make buying easier or even tell you if you fall within the USDA loan income limits. The finer details can easily slip through the cracks if the lender doesn’t have a keen eye for these details.

 

Honest and Open

Honesty is another key characteristic of any good mortgage lender. You should always search for somebody who is going to keep you fully informed about the whole process.

This openness should include being upfront about their prices and interest rates. They shouldn’t have hidden fees or extra costs that are have not previously been discussed.

Reviewing each mortgage lender closely before deciding to take out a loan with one of them will ensure you don’t get any nasty surprises after you’ve already signed a legally binding contract.

 

Great at Communication

Every mortgage lender should excel in communication. They should be easy to contact and should provide lots of detail about the process along the way.

Also, look out for somebody who doesn’t use lots of industry jargon. You don’t want a lender who is trying to blind you with fancy terminology. Instead, search for a lender who keeps things simple and easy to understand.

You might prefer to speak over the phone or via email. Whatever your preferred method of communication, find a mortgage lender that will communicate based on your preferences. They should cater to your needs to try and keep you happy.

When you begin the mortgage lending process with one particular lender, they should stay in regular contact with you. Every step of the process and every update should be communicated with you as quickly as possible so that you can stay informed.

A bad mortgage lender will be hard to contact and poor at updating you when changes occur, so stay clear of these lenders!

 

High Success Rates and Great Testimonials

When you’re trying to find the perfect mortgage lender for your needs, you must take into account their previous experience.

Most great mortgage lenders will have a portfolio of previous work alongside several positive testimonials from previous clients. Your mortgage lender should have a proven record of success with their previous clients.

Consider their local experience too. They should have knowledge and experience lending mortgages for local real estate and they should be aware of the relative mortgage rates for properties in your area.

 

Adaptability and Knowledgeable 

Mortgage lenders should be able to adapt and adjust according to the current market. The industry is changing all the time and lenders should always be on top of their game by staying up to date with the latest changes.

If a particular mortgage program gets changed or discontinued, the mortgage lender should be able to quickly come up with a solution. They should offer you an alternative program that works just as well for your needs.

The mortgage lender should be able to adjust to your needs quickly. If you change your mind about something or you decide that a particular type of mortgage is not ideal for your current situation, they should take this on board and offer alternatives. The lender is there to support you in your home-buying journey, not to push you down a particular route.

 

Inquisitive

In order to determine the best route for you, mortgage lenders should ask plenty of questions. They need lots of information about you and your personal circumstances to provide the best mortgage options for you.

Therefore, any good mortgage lender will not shy away from asking questions, no matter how sensitive or private the subject might be.

Lenders will need to delve into your credit reports, your future plans (such as how long you plan to stay in the property and what you are using it for), and the types of properties that you’re interested in buying.

Once the lender has asked you the above questions and more, they will use your answers to provide multiple mortgage options for you to choose from.