By David Yanagisawa
Are you considering taking advantage of low interest rates to refinance your home and reduce your monthly mortgage payment? If so, it’s as important to find the right lender as it is to choose the right loan. Finding the right combination could save you thousands of dollars.
Some simple research is all that’s needed to choose a lender that best fits your unique situation. Here’s how to get started:
1. Determine which type of mortgage you prefer.
Some lenders will carry different types than others. You can find common types of mortgages, with pros and cons listed, at: http://www.usa.gov/topics/family/homeowners/buyingselling/mortgages/types.shtml
2. Make a list of the lenders in your local area and check their reputation.
Is it important to you that your loan is approved and maintained with a local lender? If so, ask these questions…have they been in business for a long time? Do they sell their loans or retain them locally?
3. Contact lenders to see if they offer the type of mortgage you prefer.
Record your first impressions during these conversations and consider these questions…were you able to get someone on the phone right away? Did they answer your questions clearly? Did you feel pressured to submit an application before you were ready?
4. Assess the product selection and costs for each lender on your list.
Ask how they will determine which loan best fits your needs and circumstances. Request a preliminary estimate of fees, and if it looks incomplete or the fees seem high, that could be a red flag.
5. Compare the cost quotes from the various lenders.
Cost is always a factor, but take into consideration your comfort level with the lending institution. Remember that this is a long-term relationship so you want to choose the lender that best meets your needs.
Lakeland Bank Personal Mortgage Consultants are available to offer one-on-one counseling for those interested in exploring refinancing. For more information or to set up an appointment, visit lakelandbank.com, call 866-224-1379
or visit any of our office locations.