From our friends at Zillow:
Choosing a lender? Don't make a snap decision you might regret. Find the right fit with these five questions.
Buying a home is the largest purchase many consumers will ever make, and many will turn to a lender for financing. But finding a lender you click with can be a challenge, especially if you wait until the last minute.
Li-Ning Huang, a research manager on Fannie Mae’s economic and strategic research team, says buyers should start talking to lenders early in the process — before you fall in love with a home — and compare several quotes. “Otherwise, you could end up choosing a lender based on convenience,” she says.
Avoid buyer’s remorseTwenty-one percent of home buyers reported buyer’s remorse over their lender, according to a recent J.D. Power study.
Among first-time home buyers, that rose to 27 percent. Dissatisfied respondents cited a lack of communication, unmet promises, and feeling pressured to select a specific mortgage product.
“If you’re not getting a call back, or don’t understand what’s going on, look elsewhere,” advises Angie Hicks, founder of Angie’s List. Last year, about 9 percent of the real estate pros received C, D, or F grades from Angie’s List members.
“People happy with their mortgage pros cited quick, friendly, clear responses and fair pricing,” says Hicks. “There are plenty of qualified, trustworthy lenders out there.”
Find the right lenderIt’s important to find a lender or broker who communicates well with you, and in a manner you’re comfortable with. This applies whether you’re meeting face-to-face with a lender, or working online and over the phone. Does the lender explain things well? Are they willing to spend the time? Or do they seem rushed and irritated?
To test the waters, Hicks suggests asking these five open-ended questions:
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