With so many options out there, finding the right alternative mortgage lender can seem tricky. You’ll want to work with a lender known for reliability and good customer service. While the choices might seem overwhelming at first, focusing on some key factors can simplify the process.
Explore Your Options:
Top-rated mortgage lenders come from different backgrounds because banks aren’t the only ones offering home loans anymore. Here are some alternatives to consider:
– Credit Unions: These member-owned financial institutions usually offer very low interest rates. However, membership might be restricted, so you’ll need to check if you qualify to join. Similar to banks, they provide a range of financial services.
– Mortgage Brokers: Specialists in real estate lending, they often use funds from wholesale lenders to provide loans. They typically handle in-house underwriting, which can speed up the process. Mortgage brokers don’t lend directly but offer access to various loan options from different lenders, giving you more choices though not necessarily faster processing times.
How to Pick the Best Mortgage Lender:
To find the best alternative mortgage lender, compare various top lenders based on several factors such as:
– Interest Rate: Comparing interest rates from different lenders can save you money in the long run, whether you’re refinancing or buying your first home. According to Freddie Mac, getting just one extra quote might save you around $1,500 over your loan’s lifetime. Five quotes could save you as much as $3,000. Notably, Freddie Mac found that nearly half of borrowers don’t shop around for rates.
– Fees: Depending on your lender, you might encounter several costs, even with top mortgage lenders. These can include application fees, document preparation fees, loan origination fees, closing costs, and more.
– Customer Service: Since a home loan is a long-term commitment, a lender with excellent customer service is important. Look at online reviews from past borrowers to understand how a lender handles service. Consider how easy it is to contact them; ideally, you should be able to reach them both online and by phone.
In conclusion, choosing the best alternative mortgage lender involves considering factors like fees, interest rates, and customer service. Be sure to take your time to make an informed choice, and communicate clearly throughout the process.
