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Buying a House? Three factors to consider when choosing a mortgage lender

Buying a House? Three factors to consider when choosing a mortgage lender

When looking for a mortgage lender, prospective homeowners should never forget that the choice of lender is, in most cases, entirely theirs to make

A home is the most significant purchase many people will ever make. Perhaps because of that, many buyers, particularly those purchasing a home for the first time, are understandably nervous about the home-buying process. The decision regarding which home to buy warrants ample consideration, but so, too, does the buyers’ choice of lender

“The buyer choosing a lender should be based on that loan officer not so much on the bank. The banks are very large and have many loan officers working for them, and most are average, some are good, and some are bad. With a decision as important as buying your home, you should not risk having an inexperienced loan officer working on your loan, so I recommend you google and look at the reviews of who is talking to you”, explains William Ledesma, SR Loan Officer.

Mortgage lenders can be found all over the internet, and the sheer volume of lender options can make it hard for home buyers to find the right fit for them. Couple that with lending-related terminology that many first-time buyers may be unfamiliar with, and it’s easy to see why prospective homeowners can feel overwhelmed about the process of borrowing money to buy their homes.

“This process gets more complicated the more options you have. First, make sure the lender speaks your same language; you need to make sure you understand everything the lender is explaining to you. Second, make sure he or she is honest; sometimes we don’t like what we hear, but it’s important that we understand the difference between the truth and someone that is telling us what we want to hear.

Do not let anyone pull your credit at the beginning. I would first make sure the loan officer understands my income and expenses, then if those numbers amount to what I am looking for, then I would give permission”, say Ledesma

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When looking for a mortgage lender, prospective homeowners should never forget that the choice of lender is, in most cases, entirely theirs to make. When making that decision, a host of variables should be considered. The following are three such factors that, upon ample consideration, may help buyers rest easy knowing they did their due diligence when looking for lenders.

  1. Reputation/recommendation
    Just like other businesses, lenders have reputations, and oftentimes those reputations can be determined via some simple online research. Peruse online reviews to determine what past buyers felt about a given lender. If possible, ask friends, family or colleagues who they worked with to secure a mortgage.
  2. Fees
    Fees vary from lender to lender. Fees should not be mistaken for interest rates, which change daily and are typically dictated by the financial industry and prospective buyers’ credit history and financial standing. When speaking with potential lenders, ask for a rundown of their fees, and the services those fees include, and closing cost estimates in writing, then compare and contrast fees and costs of various lenders before making a final decision.
    “Be careful of the bait and switch. I have seen big lender, banking institutions do this as well as small ones, where they don’t disclose the origination fees correctly, the normal fees are processing and Underwriting, anything above that is basically the cost for the rate . also understand when you see an estimate the bank is only responsible for Origination fees and fees relating to the loan, what I normally see is they will lower title fees , insurance fees and other fees that the bank doesn’t control l to make the total estimate look lower but then when the time comes to close and all those things go up they explain at the moment that those are not the things the lender is responsible for and by that time you are too late to back out from the loan”, warns Ledesma.
    Some lenders may charge considerably more in fees than others, so buyers should put in the effort necessary to comparison shop.
  3. Personal interaction
    Buyers, especially those who have never before purchased a home, will likely have lots of questions. This is where personal interaction with a prospective lender should be noted. Securing financing for a home purchase can sometimes seem like an impersonal process, but it doesn’t have to be, and many lenders are happy to answer buyers’ questions. Lenders who answer questions quickly and clearly can make buyers more comfortable about the home buying process. Buyers may want to avoid lenders who seem evasive or unwilling to answer questions in writing.
    “Please understand that a lender sees hundreds of cases a day, and even though your situation might be unique, I recommend you speak to the lender for about three minutes on the phone before you sit down to meet with him or her. Your time is valuable, so the last thing you want to do is have to take off work to meet with a lender and not be prepared or bring what is needed in ordered for the lender to better answer your questions. I personally don’t meet with anyone whom I haven’t spoken to for at least three minutes on the phone”, Ledesma she concluded.
    For more information call 786-517-4600, or visit www.williamledesma.com

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View Comments (2)
  • Thanks for explaining that many prospective lenders will try to make buyers comfortable by answering their questions in a personable way. My husband and I want to start looking at townhomes for sale because we like the idea of being able to personalize our living space without restrictions. I’m glad I read your article and learned how to avoid issues as we move forward with buying a home!

  • Thanks for the tip to choose an honest lender instead of someone who just tells us what we want to hear. My husband and I want to start looking at real estate in a neighborhood with a good school district so we can have peace of mind about the future of our kids. I’m glad I read your article and learned what factors to consider as we look for professionals to help us with the home-buying process!

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