Home Loan Lending - Choices

Searching for a new home loan seems like it would be the easiest thing in the world. You can just go online and within seconds have 4 quotes right at your fingertips. You can open the yellow pages and find a million and one companies and individuals trying to get your business. You could ask a friend, walk into your local bank or go to the national chain bank that might even be closer than the local bank.

So, how do you get through all the mortgage companies, find the good companies and actually choose who you want to work with? Well, it takes a little bit of work but it can save you money, time and heartache.

Step 1 - Getting a list of companies. You can do this lots of different ways. The best place to start is talking with friends, coworkers and family members that have bought a new home or refinanced in the past year or two. Did they like who they worked with? Were the really happy with their mortgage and the service they received? And the best question of all: Is their mortgage broker still in contact with them?

The last question is important for lots of reasons. If the mortgage broker is still in contact with their past clients it means they know the value of their client, don't forget about their clients after a single transaction and provide high-quality loans. (Instead of trying to sell a loan that has hidden fees, inflated fees, adjusting rates that you didn't no about or all the other problems that give you buyers remorse.)

You can also find companies on the internet, in the yellow pages and visit your bank or credit union. But referrals for a mortgage broker from people you trust is hard to beat.

Step 2 - After you have your list of companies you need to interview them. Choosing who you want to work with goes beyond interest rates and fees. Without a doubt it is important to get a good deal. But you want to trust who you are working with. The best interest rate might not save you the most money. The lowest fees could be hiding higher fees somewhere else. If you trust who you are working with and know this person wants your future business, you can feel secure with what you are being told.

You want to ask your mortgage broker a couple of questions:
- Do you charge points for your loan?
- What are the best loans for people in my situation?
- Why should I work with you?
- Do you keep my up-to-date on my loan compared to the current market after I close?


You also want to hear good questions from your mortgage broker:
- How long do you plan on living in this home?
- Do you expect any changes in the next few years? (Getting married, having children, children moving away, promotions, retirement etc...)
- Are you conservative, aggressive or in between with your investments and finances?

Asking good questions will give you an idea of your brokers views and you can decide if you trust them. Having good questions asked will let you know that your broker is working to find you the best loan and not try to fit you into any old loan.

Stay tuned for how to compare loans...

Kansas City Mortgage Group
http://kansascitymortgagegroup.com/index.htm