Posted June 11, 2010 by Michelle Myers

Choosing the best lender for you

There are so many choices when it comes to who you want to handle your loan. You want someone you can depend on, has competitive rates/costs,  and can guide you on what loan will fit you best. Here are a few tips in finding which one is right for you.

Check the lender's reputation: Ask a friend! Word of mouth is very important in this business. If you have never worked with this certain lender or even the company they work for, the opinions of your friends or coworkers is a great way to start.

Compare interest rates and fees : Get a couple of quotes from different lenders. Don't just look at loans based on their APR. Get a more accurate break down of thier costs by getting a "Good Faith Estitmate." It will break down all the costs you will have during the loan process. Even show you what the lender will charge if you have any potential penalites. Such as prepayment penalties and fees for locking in your rate.. Make sure the lender is being honest with how much money they are actually charging you and how much money is coming out of your pocket!

What types of loans are available: Take advantage of the many loans that are available right now. Ask the lender which ones is right for you? Do you want to go with Conventional( 5% down) FHA (3% down) or if your a veteran you can use the VA program. If you have more than 20% to put down ask the lender about your PMI and how that can help you!

Just make sure the lender you choose is up front and honest from the get go. You want someone you can trust and be very confident in when handling your money and your future. If your still uncertain on who to use, ask your Realtor! We work everyday with the best of them and can direct you in the right direction. Be sure to ask questions! You can never ask the wrong one, the more you know the better understanding you will have with the process and less stressful its going when purchasing a home.