What to Look For in a Lender
You’re ready to jump into your home buying journey but don’t know where to start or who to get in touch with.
Deciding to invest in a property can be a big decision. And one of the people that will be a guiding force as you navigate loans, mortgages, credit, and more is your lender.
A mortgage lender is a financial institution or bank that offers home loans. They use their internal guidelines to assess your ability to repay loans and set terms for interest, repayment, and more.
As you go through your finances and assess how much you will want to spend on a home, you will most likely connect with one or a few mortgage lenders and deal with a specific representative who will help you navigate the jargon and find a loan plan right for you.
When reviewing your options for a mortgage lender and representative, there are a few things to keep in mind. Refer to the list below and ask these questions whenever you’re considering working with a mortgage lender.
Do they offer the right loan for you?
Not every mortgage lender offers the same types of loan options. For example, one company may not offer a 30-year-fixed-rate Federal Housing Administration mortgage with a low down payment while another may not offer large or jumbo loans. Knowing your goals and how much you generally want to spend on a down payment or per month will help you narrow down your initial search.
If you’re not sure what type of mortgage is best for you or you’re new to the world of real estate, don’t worry! This will lead to the next point.
Are they meeting you where you are on your journey?
As with any industry, there are beginners and veterans and if this is your first home purchase, finding a lender that caters to beginners and has resources and people available to explain the different options to you in a way you can understand is imperative.
When talking to a potential lender, don’t hesitate to ask about their experience working with beginners and ask for additional resources and explanations to get an idea of how they’ll be able to help you moving forward.
2. How responsive and available are they?
Buying a home and arranging a mortgage can take time and patience. Being able to communicate with your lender when you have a question or you’re feeling overwhelmed or confused about the process is incredibly important.
When considering different lenders, take into consideration how responsive and available the institution will be to help you during the process.
If this is your first mortgage, you may need more 1-1 support whereas if you have been down this road before, you may need less individual support throughout.
3. What is their level of experience?
A financial institution will almost inevitably be experienced different mortgage types and buyers who are entering the world of real estate. But every situation is different and different lenders and agents can specialize or have experience with different types of properties and mortgages.
If, for example, you’re looking for options with a lower down payment - certain lenders will have more experience with this particular situation. Or, if you’re looking in specific locations, you may want to contact a lender based on where their office is in case you want to visit in person or have them be in contact with your realtor, who will most likely be based in the location you are looking to buy the property in.
4. What types of reviews and testimonials do they have?
Just like when we surf amazon and check the reviews before clicking ‘add to cart.’ looking at the reviews and testimonials from previous clients of your potential lender is incredibly important to gauge how your experience with them will go.
You can always reference their website or google page to see what people are saying about working with them. You’ll either feel more reassured to reach out or you’ll learn about some red flags you should keep in mind when consulting the lender.
At Wyndham Capital, we prioritize working with you step-by-step through your mortgage journey so that you can find your perfect home. If you’re looking for any assistance with a home loan or have a question, leave a comment below and don’t hesitate to reach out.