Is this Lender Reputable?

Interest rates aren't the only factor to consider when comparing mortgage lenders. You should also be comfortable with the lender's reputation. Unfortunately, there is not a list of reputable mortgage lenders, but common sense can protect you from a bad mortgage lender. First, do research on your top choices for mortgage lenders. Check out the lender's website to find their physical location, list of terms, and available customer support. Secondly, beware of too good to be true claims, such as statements that this is the only company that will finance your mortgage loan. And finally, do not sign any blank forms from a lender. You don't know what they add later.

Reputable lenders will find out more about you before throwing out loan options. You wouldn't expect a doctor to suggest surgery before she assessed your medical situation, would you? Choose a lender who gathers enough information from you before she suggests a certain type of loan. Don't be afraid to ask a lender to explain the pros and cons about. Here are four steps can help you to find the right mortgage lender.

1. Refer to references: Whether you're searching for a primary or second mortgage, or a mortgage refinancing, you want a reputable company. Poll your friends, family, neighbors and co-workers who have recently bought homes. Ask them about their mortgage companies. Did they have a good experience? With a short list in hand, start calling the lenders. Local ones, familiar with the market, will be able to give more accurate estimates. Then search online for competitive offers to see if you can get a better deal.

2. Calculate the costs: Ask each lender about interest rates, points, and a list of fees and costs. Make sure that you ask each potential lender exactly the same questions. This way, when you're done, you'll be comparing apples to apples. Make all the calls within a couple of days to reduce the chance that a change in market conditions is causing differences in the answers.

3. Pay attention, do your research: Does the lender or broker seem to know his business? Will she answer all your questions? Are there signs that the operation is disorganized and inefficient? Is the lender or broker available when you call, and are your calls returned promptly? If you're uncomfortable, move on to someone else. Ask for recent customers and check references. Search for information about a company at the Better Business Bureau.