Mortgage Lenders
Mortgage lenders are known by many names which are almost synonymous but with a few differences. Mortgage lenders usually represent one Mortgage Company, lender or bank where mortgage brokers represent many lenders in an attempt to get the borrower the best deal possible on their loan or mortgage. They all serve a purpose since some borrowers feel comfortable dealing with a big name bank or lender, while other consumers are not concerned with where the loan originates as long as they feel they are getting the best possible rate of interest and term. Some consumers are very comfortable searching the web for a mortgage and having the entire process being done over the internet or by calling a 1-800 number.
The more traditional consumer may want more of a face to face relationship with a lender that has been referred to them by a friend or co- worker that had a good experience in getting their mortgage through that lender. You may have a relationship with a bank loan officer that can refer you to someone in their mortgage lending division to process your mortgage. The bank loan officer would have a vested interest in making sure that his banks mortgage lending group handled your mortgage in a professional manner and at a competitive rate.
Regardless if you go with a referral, a more traditional route or go online to find a mortgage there are more criteria to be aware of than just the rate of interest. Lenders additional fees, points, closing costs, terms and conditions all need to be a part of your calculation to make sure that 6% rate at company A does not cost you more upfront and in the long run than a 7% rate from company B. Lenders are facing an ever increasing list of guidelines by the government to make sure that the consumer is protected from unscrupulous and predatory lenders. Lenders are required to give you a “Good Faith Estimate” explaining the fees and costs associated with the loan you are applying for and to continuously update the estimate as the rate or other factors of the mortgage changes. Consumers are wise to choose a lender that they are comfortable with that is willing to spend the necessary time to answer all their questions, while finding them a competitive mortgage. Not unlike most other service companies like inspectors, contractors or realtors; mortgage brokers depend on referrals and repeat business to make a living and should do what is necessary to earn your business in an attempt to make you a long time satisfied client.