Photo by: GOTCREDIT
Yes, you can use any lender you wish to use when you purchase a home, but I strongly suggest you consider these points when selecting a mortgage lender:
- Is the lender local to the home purchase? I firmly believe that it is better to use a lender that is local so that he/she understands some of the idiosyncrasies of the local marketplace.
- Will you be working with a lender that you can actually meet? Someone you can personally interact with? Or will your loan be handled by someone in a business center hundreds of miles away? A local lender with whom you have a personal relationship will be more accessible, and will have more motivation to make sure that your loan process is streamlined and pain-free.
- Who wears the necktie? I ascribe to the one necktie philosophy- when something goes bump in the night, you and I want to know the one person that we can contact reliably, the person that will pick up the phone and help us work through any issues. (refer to #2)
- At the risk of sounding narcissistic, does the lender have a relationship with your Realtor? It is likely that you will not need another home loan for 7 years on average, however your Realtor can refer a good lender many, many clients in a year. It is a good idea to use someone who wants to make your Realtor happy. We do not receive any benefits from referring business to a lender, with the exception of white glove service for our clients. We have nothing financial to gain if you choose to use one of the lenders that we suggest.
- Will your lender tell you to go elsewhere if you get offered a better loan scenario? Absolutely! The great lenders will suggest that you go with “Brand X” if it is in your best interest. My favorite lenders will do this without question.
- Ask your Realtor what her recent experience has been with any of the lenders you are considering. This can be great information and may help you avoid some pain.