Primer on Choosing a Lender
By JJ Singh
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National bank or local? Over the internet or in person? The answer to these questions will help you decide which type of new home loans is best for you.
When deciding where to go for a new home loan, it's important to first know your needs and how each lender caters to them. Here are a few types of lenders from which you can choose:
When choosing a lender, ask yourself how financially savvy you are. If you have experience you have with new home loans, you can take advantage of great rates online or at a national bank with little hassle. If you prefer a little more comfort, try a local bank, savings and loan, or even a mortgage broker.
- » Traditional Sources. These could be commercial banks (national or local), savings and loans, or credit unions. Ask yourself, do you prefer the comfort of a communal institution or would you prefer more services and the stronger security of a national bank?
- » Online Lenders. You can often get several quotes at once to shop for your best rate. Be sure that the online lender is legitimate and try to assess their customer service. You can't just walk in and speak to someone it's important to see how responsive they are in the loan process.
- » Mortgage Brokers. A broker will shop around for you to get the best quote available. This is a good option if you're short on time or aren't comfortable with financial research. However, brokers charge a fee so find out exactly what the costs will be upfront.
About the Author
JJ Singh is a loan consultant who has mortgaged his life away to the micro finance industry in New York City. He holds a bachelor's degree in Economics from the University of Virginia.
Choosing a Lender