Before applying for a mortgage or mortgage refinance, it’s important to shop around for a mortgage lender. Many people make the mistake of contacting just one lender – usually their banks – because doing so is faster and easier. While this is true, your goal should be to find a mortgage lender that’s trustworthy and that offers competitive mortgage rates.
Your needs are important
When you’re buying a house or refinancing, you’ll have questions. You don’t want to spend hours waiting for your lender to return a phone call or worse, not return your call at all because the lender thinks you’re becoming bothersome. That can happen when working with bigger lenders. Smaller-sized lenders are more likely to give you the personal attention you need and that you deserve.
When you’re looking for a home purchase loan or mortgage refinance, timing is everything. You need to know that when you deliver required documentation it’s going to get looked at and not thrown on top of a heaping pile of other applicants’ paperwork. A fully-staffed smaller-sized mortgage company isn’t likely to do this. You’ll find that the lender with whom you’re working is just as anxious to process your mortgage-related paperwork as you are to forward it.
The staff working with smaller lenders usually makes it a point to get to know you better before suggesting a mortgage product. That’s important because doing so enables you to purchase the most house you can afford and obtain a mortgage that fits within your budget now and in your future. Bigger lenders are more likely to push the mortgage products that make the most profit for the lender.
Smaller lenders know their markets
The bigger mortgage lenders also are less likely to be in touch with what’s going on locally. But those working at smaller mortgage companies generally are well-connected to their communities. Therefore if you need a home inspector, lawyer, or some other referral, that lender’s going to know who you should call.
Another benefit of working with a small, local lender is that the mortgage lender won’t be scared off by those market forces that the bigger, more regional lenders might perceive as negative. For example, the difficulty in finding companies willing to write homeowner’s insurance policies in Florida might cause larger lenders to focus less attention in this region. A Florida mortgage specialist will have figured out how to make the best of this type of regional situation because the lender’s survival depends on it!
And most importantly, when you work with a smaller lender you won’t get bogged down in bureaucracy. That’s because you’ll most likely be working directly with the primary decision maker and if not, that key person will be readily accessible in a nearby office. Again, when you’re in the market for a home purchase loan or looking for help with debt consolidation, timing is crucial.