Choosing the Right Mortgage Lender
You’ve found the perfect home. Now it’s time to find the perfect mortgage to help pay for it. There are a lot of options available. Do you want to go for a 30-year note or pay down the debt more aggressively by taking the 15-year route? Is an Adjustable Rate Mortgage a good idea or should you opt for the stability of a fixed rate loan? The first step to answering these questions usually involves choosing a good mortgage lender in Bucks County. Some things to consider are:
Interest Rates: Some mortgage lenders are better than others at getting competitive rates. It pays in the long run to shop around for those lenders.
Transparency: Look for a mortgage lender who is upfront about what to expect during the process and who candidly answers your questions.
Responsiveness: Does the mortgage lender return your calls and emails promptly? If not, you should consider trading up to a lender who makes your needs a priority.
Closing Costs: Don’t lose the money you saved getting a great interest rate by paying more in closing costs. Ask your prospective mortgage lender for an itemized list of their closing costs.
Reputation: It’s simpler than ever to see which mortgage lenders stand out from the rest. Sites such as Yelp and Angie’s List can provide you with a good idea of who leads the pack. Can’t find reviews for your prospective lender on social media or industry sites? Try Googling the name of the institution along with the word “complaints” and checking the search results.
Customer Service Counts, Too! The First was rated #1 for customer service in the Checkbook Survey.
Is an ARM Ever a Good Idea?
Adjustable Rate Mortgages might be the right choice for people who plan to sell their homes in a few years or for buyers with enough money to weather the ups and downs of the interest market. For most buyers, however, a fixed rate loan makes it easier to plan your budget because your mortgage payments stay consistent. If you’re looking to refinance your ARM, consider these factors:
- Length of time you plan to stay in your home
- Your current ARM rate vs. fixed mortgage rates
- When and how much your ARM payment may rise
- Refinancing costs
- Prepayment penalties
Shopping for the right mortgage lender can be just as important as shopping for the right home. If you have any tips for choosing a lender, let us know in the comment section below.