Commentary: Which Lender Do You Choose?

By Kristin Abouelata, Home Loan Specialist

Ok, so you don't have a particular relationship with any one lender, and you need to get a home loan. Being the prudent shopper that you are, you've called around to various lenders, and you've obtained 3 very competitive good faith estimates. In fact, these estimates are so competitive, you wonder if the three lenders are in cahoots with each other. (Trust me, they're not). So, how do you decide?

First, you should consider the reputations of the companies involved. You can check out the company/lender online. How long have they been in business? In today's volatile market, you want to make sure that whom ever you are obtaining your loan through is in business on the day of closing. When times are tough, mortgage shops have been known to close their doors overnight. Don't laugh, it happens. Even a good lender may close its door if it is relatively new or poorly managed. Look at the sub prime market. When the bottom fell out of it last year, lenders disappeared right before our very eyes. Ok, I'm exaggerating a bit, but many consumers found themselves shopping for new mortgage at the last minute. And those that were unable to produce one probably lost a bit of cash, not to mention experienced a lot of turmoil and stress. After all, many plans are made by many different people when a home changes hands. Movers are booked, rent is cancelled, new school enrollment is arranged. It can become a logistical nightmare if a closing date is moved.

Secondly, one lender may be able to offer you something another cannot. I'm not talking about anything directly related to the lender's fees or charges. But some lenders offer discounts or services from other vendors. It can be anything from a coupon for a free appraisal to a gift certificate to Home Depot. Ask your lender if there are any other benefits or advantages to using them. You never know.

A third thing to consider is service. Has one lender been more responsive than the others? Do you get the feeling that one will get the job done over another? A person can have a completely different experience with the exact same loan from one lender to a next. Why is this possible? Because once your loan is out of your lenders hands, it flows through different departments. Many, many people will work on your loan before it is all over. It takes a village to close a loan (not really, but it was fun to say). Seriously, though. A good support staff is what keeps a loan officer on top of the pack. So, take into account a lender's reputation. A good one is earned for good reason.

And finally, is there a lender you just click with over the rest? Sometimes, it's a question of personality fit. I've heard from countless customers that this aspect is what tipped the scales for them. And it makes sense, when you think about it. After all, if you're making the biggest purchase of your existence, you really want to work with a person with whom you feel comfortable. Trust me, even seasoned homeowners have questions and misgivings. Thus, the answer of whom you choose may just come down to who you like.

Let My Experience Work For You! Email your home loan financing questions to Kristin Abouelata, Home Loan Specialist with Mortgage Investors Group, at question@kristinmortgage.com or call direct: (865) 567-0113 Toll Free: 1-800-489-8910. For more information visit www.kristinmortgage.com Home Loans Plain Talk.