Lenders often want consumers or borrowers to think that the lender is doing the borrower a huge favor in lending the desired money. In most cases it is actually the other way around. The borrower is doing the lender a favor. If a borrower has great credit, has proven that they can manage their finances well, and is a smart disciplined person, it is in the lenders best personal interest to lend money to a borrower with a good credit history. Monthly interest payments that are paid on time are basically pure income for the lender. Here are five simple tips to consider when choosing a lender.

First, of course, is to check out the different interest rates but remember to also consider the comparison of fees which often vary considerably. In other words, knowing the monthly cost of the loan is great to know, but knowing what the total amount of the loan will cost by understanding the different fees levied by different lenders can save a borrower a large amount in the end. Simply call the different lenders and ask for a “good faith” estimate of what they feel the total cost will amount to.

Second, each borrower will have a specific set of needs that different lenders may be better equipped with helping. For example, the larger lending institutions may not want to lend to someone with a smaller down payment. Other lenders may be able to cater better to a borrower with a lower credit score. Look at lenders that advertise their specialty closer suited to individual needs.

Third, along with the right lender, look for the right style of loan. In the market today, there are a greater variety of loans than there have ever been in the history of the country. A borrower may want to go with the classic fixed rate or adjustable loan. A borrower may also want to look into the new types of hybrid loans.

Fourth, borrowers are not doing lenders a favor. Therefore, making judgment calls based off of the level of customer service is not far fetched. Ask questions such as their fee policy pertaining to locking in interest rates, or seeing if the lender will amend one of their policies for the borrower. If the lender seems to be flexible and responsive, they most likely offer great customer service.

Last, do not go forward with a loan without first finding out about the lenders reputation. Just like on eBay where a buyer should read the comments and see the history of the seller in order to not be duped, a buyer of homes should only use a reputable lender. It may not be as easy as finding a web page with “reviews” of the lender. It is a good idea to ask your realtor of good lenders. Typically realtors are not allowed receive any sort of kickback from a lender so usually they recommend only reliable lenders who get the job done.

Author Bio: Juhlin writes about Fountain Hills AZ homes for sale and Tempe AZ homes for sale. If you are ready to buy a home you can opt to have the newest Phoenix AZ homes for sale or Tucson real estate sent to you.

Category: Real Estate
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