5 Things to Look for in a Mortgage Lender

Choosing your mortgage lender is a crucial decision when it comes to buying a home. With so many lender options available, it can be overwhelming to know where to start.

Here are five key factors to consider when selecting a mortgage lender.

1. A Lender Who Listens to Your Financial Goals

Whether you’re targeting a certain monthly mortgage payment or need a low down payment option and less cash-to-close, knowing your goals can guide your lender to the best mortgage solution for you. While most lenders have an online application for you to fill out, a website application can’t convey what your specific goals are. If you opt to fill out an online application versus calling to complete the application over the phone or scheduling a face-to-face appointment, make sure your lender communicates with you beyond the application to really understand your goals.

2. A Lender Who Offers Many Loan Options

After your lender evaluates your goals and financial situation, they should be able to determine the best loan program that best fits your needs.

Most lenders have standard mortgage offerings such as:

• Conventional Loans – Traditional fixed-rate or adjustable-rate loans
• FHA, VA and USDA Loans – Government-backed programs with more flexible options for those who qualify
  
  

There are many additional programs and products to consider if your lender has other special loan offerings. CommunityAmerica has a wide array of special products including:

• First-Time Homebuyer Loan – for new homebuyers wanting to put zero to little down towards the down payment
• Bridge Loan – for when you need to tap into your current equity for a down payment on a new home
• Lock and Shop – lock your rate in while you shop for your new home
• Buy Down Programs – seller or builder may pay upfront for you to get a lower rate for a period of time
• Construction-to-Permanent Loan – a construction loan that converts to permanent financing
• Jumbo Loans – Special financing for higher loan amounts
  
  

3. A Lender Who is Readily Available and Accessible

Your lender’s flexibility is key during the buying process. When homes are moving fast and you can’t get ahold of your lender, you could miss out on a house you want. A lender should also be available to send updated pre-approval letters or run numbers with you on a specific house.

Look for a lender who provides accessibility outside of the typical 9 – 5 schedule including weekends. This level of availability can help alleviate stress and provide peace of mind knowing you can easily reach your lender for assistance or guidance at any time.

4. A Lender That Offers More than Just a Mortgage

When it comes to securing a mortgage, many people focus solely on the interest rate and terms of the loan. But some mortgage lenders offer additional benefits and perks that can save you money such as recasting which gives you the ability to recalculate your mortgage payment after you make a lump-sum payment toward the principal. Recasting can give you a lower payment at the same interest rate and without the hassle of refinancing. Another benefit is a float down option, which is special financing that locks in the interest rate with the option to reduce it if the market rates fall during the locked period. Find out if a lender has budget-friendly opportunities such as no prepayment penalties or bi-weekly payment schedules.

Financial institutions who offer a full suite of banking products in addition to mortgages may have benefits outside the mortgage programs. For example, CommunityAmerica includes mortgage balances in our Profit Payout*. On average, members who have their mortgages with us can see a higher Profit Payout every year.

5. A Lender That is Local and Known in Your Community

Local lenders are often familiar with the local real estate market, making it easier to provide personalized guidance and support throughout the home buying process. Not only does a local mortgage lender work in your favor but also for your real estate agent. Agents tend to prefer a local lender versus online lenders because they can get ahold of someone easier during the homebuying process.

You can choose a lender based solely on rate, but there are other factors to consider when looking for the best deal. Remember, a reputable lender will have your best interest at heart, will listen to your goals and provide options that best fit your needs. CommunityAmerica’s Mortgage Advisors are here to listen, help you navigate the loan process and are available when you need them. We will work with you to find the best loan option for your situation.

Schedule a meeting with a CommunityAmerica Mortgage Advisor, visit your nearest branch or give us a call at 913.905.3799 today to get started.