How to Find a Good Mortgage Lender

The internet can be a blessing and a curse. Many buyers are now doing a ton of research online to get information on buying their first home which is great but I think they are overdoing a bit and missing the most important factor..a reputable lender. First of all, it takes many years of experience to understand and structure programs and if you do not meet one guideline, your loan is done..finished. My point is that many loan officers these days are promising great loans with unbelievable rates without doing their homework and the result is a time-bomb waiting to happen. These days the competition is fierce and they will tell you anything to get your business. For example, you apply for a special zero down bond loan program in your area which offers a grant and you are excited about the getting into a new home with a low payment and no money out of your pocket. Then, 2-3 weeks later you call the loan officer for status on your loan and he doesn't return your calls. Hmmmm....What is going on??? I will tell you. He found out you didn't meet one of the guidelines such as income requirement, the deal blows up, and he is hiding out in a bunker nowhere to be found. What about the low rate you locked into and the no closing cost promise? Kiss it goodbye. Now, you are scrambling for your life trying to find another loan officer and program days before closing. Don't get me wrong, there are a lot of good loan officers as well as bad ones, but you need to talk with somebody with experience in first time home buyer loans and who has your best interest at heart. I have had many people come to me right before closing after having a bad experience with a lender and I wish they would have not bought into "the too good to be true promise."

Secondly, do your research on the programs but don't apply to every online lender in the universe so you can't remember which ones you applied to and what programs they offered. Bookmark or save the best websites so when a loan officer calls you about your application, you have an idea why you contacted them.

Finally, you MUST ask for a Good Faith Estimate of the closing costs and get a "Total Cost Analysis" of the best 3-4 programs side by side so you can make the best decision on which program will work for you. Make sure you understand what the lender is actually charging you because they can low-ball standard charges such as title insurance to make it appear that their closing costs are lower. Go over every cost line by line and if you don't understand a cost then don't be afraid to ask about an item..it's your money. Another thing is don't get caught up in who has the lowest rate and closing costs in the world. You must look at the lender qualifications as well as the best program options based on your financial and personal goals. Many online lenders offer below market rates and costs but they may not deliver the loan you asked for and they may bait and switch before you close your loan. Believe me it happens more times than not and that is what gives mortgage brokers a bad name. In the end, trust your gut feeling..it is usually right..and you will get what you paid for and more.