Choose the Perfect Lender

By Debbie Wilson
Loan Page Columnist

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Choosing a lender for your new home loan might seem like a daunting task, but it doesn't have to be. All it really takes to select the perfect lender is some critical information about your current financial situation, your earning potential, and your future desires and ambitions.

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Lender Options

Lender choices range from savings and loans, to commercial banks, to mortgage bankers, to mortgage brokers, to credit unions, to individual home owners. With so many choices, how do you go about selecting your perfect lender? The answer lies, in part, on your current financial situation and, in part, on your future goals, ambitions, and earning potential. Additionally, other important new home loan criteria include your credit history, your new home loan time frame, and your comfort level with potential lenders.

Lenders Explained

The type of new home loan you obtain can greatly alter your interest rate, term of loan, and loan options. If you are able to put down a large percentage (20% or more) or make high monthly payments, you can affect both the quality and quantity of your loan options. Typically, savings and loan, commercial banks, and credit unions all have a somewhat limited amount and variety of loans to offer their customers. That is partly due to the fact that their business encompasses much more than simply new home loans.

Advantages of Mortgage Brokers

Mortgage bankers and brokers, on the other hand, tend to be more motivated to offer you the perfect loan. That is because they usually only get paid when their customer is approved for a loan. Additionally, they only deal with mortgage loans, so they are highly specialized and trained in that arena. Finally, mortgage brokers often times have better access to the most competitive rates and options available across the nation and can offer more relaxed underwriting standards than the typical commercial bank or credit union can.

So if you are ready to find that perfect new home loan, take the time to research your mortgage lender choices carefully. Then, choose the one that fits your financial situation (both present and future) and goals and dreams. You'll find that the right lender can help you obtain the right mortgage--which translates into the perfect new home loan.

About the Author
Debbie Wilson owns and operates a lakeside resort. Her previous experience includes profitability consulting for a national healthcare company. Debbie holds a B.A. in Business Management with a minor in Physical Education.

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