Friends often ask me where they can find expert FHA lenders. But before I share my secret, here's a word of caution! It's NOT by shopping for the lowest interest rate! Despite this, you want and deserve the best interest rate available. That's a given.
But if rate shopping is not an effective way of choosing the best mortgage company and loan originator, how should you begin your pursuit?
Easy! You will have better success finding the best mortgage lenders AND the lowest interest rates if you start out asking for referrals. Begin with these three groups.
Your agent comes in contact with lenders daily and is treated to a bird's eye view of mortgage transactions.
Real estate agents know which lenders have competitive fees, close on time, and treat their borrowers with respect.
Tap into his or her experience by asking your real estate agent for a recommendation.
Tip: Specifically ask where they'd refer their son, daughter, or mother for a home loan.
Keep this in mind, too. You are forming your own personal dream team to guide you through the process of buying a house and getting a mortgage.
A survey in 2013 stated that the majority of mortgage borrowers choose their lenders based on referral. Gone are the days of picking a bank from the Yellow Pages.
Strike up a conversation with your favorite neighbors and co-workers, asking who they plan on using the next time they need to get mortgage financing. Be on the outlook for the same loan originator names popping up repeatedly. That's a good sign!
Tip: It's a good sign if you keep running across the same lending professionals.
Think about this. Relatives are a unique source of referrals because they will shoot straight with you. The next family dinner will provide a valuable opportunity to check in with your sister-in-law who just bought her first house.
Tip: Don't forget this question! Would you use the same loan originator again?
FHA lenders who understand the importance of working in tandem with buyers and real estate agents are crucial to a smooth transaction. But you also want one who puts you at ease while discussing your finances. So once you gather your referrals, set aside enough time to interview them.
Learn more about qualifying your lender at How to Compare Loan Originators with Ease.
What if you could ask a mortgage insider anything you wanted? Now you can!
Ask Kate is specifically designed to answer your questions and create dialog regarding FHA financing.
You'll also find a wealth of information at Kate's Best Mortgage Rate Blog packed with the latest additions to this website, interest rate updates, and a fresh approach to homeownership.
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