How to Choose the Best Bank For Mortgage
How do you go about finding the best bank for a mortgage? If you have bad credit you will be at an advantage to get a home loan. If you have good credit you may not qualify. The key is to shop around and compare. There are many ways to do this online with several websites. Here are some tips on finding the best bank for mortgage in your area.
Not sure know your objection to online mortgage brokers. Even the smaller local lenders (Neighborhood Capital, F NF Capital, anyone related to FNF) all have some extra hurdles for lending and the interest rates are often less than perfect. The big national banks are usually the easiest to deal with too. Check their interest rates, reputation for staying in business and their ability to offer competitive mortgage deals. You can also check for free mortgage quotes, low first time homebuyer tax credit programs and mortgage refinancing programs from these companies.
You may hear scary things about mortgage brokers such as they can steal your money. This is actually quite rare. Mortgage brokers only get paid from the lenders they represent so they are bound to stay honest. They represent many different lenders and are busy working with many different customers.
Some mortgage brokers try to get you to refinance with them. This is actually against federal law as it costs the lender more money than it would for you to refinance with another lender. Some states have restrictions on what types of lenders can appear in a home buying program. It would be wise to only use a broker who is licensed to do business in your state. Also, many credit checks are done by the mortgage brokers as well so you want to make sure they have a good FICO score as well as an excellent credit history.
Another big misconception is that big banks make the best home loans. It may seem like a good thing to go with the biggest bank but in fact they rarely have good lending practices. They have too much overhead and cannot withstand the loss of a business or a customer. They need a steady flow of customers or they could go out of business.
There are some exceptions such as Countrywide and Chase. They are large banks but not usually considered to be mortgage lenders. The mortgage broker works for the lender and is responsible for finding the best mortgage lender and getting you the best deal. The broker does not deal directly with the customer. The goal is for both the mortgage lender and the broker to come to an agreement to which the customer will pay.
If you are shopping for an online mortgage company then you should check out several of the smaller banks online. Many times these smaller banks will have lower fees and not have as many requirements for you to meet in order to qualify. In some cases the online lenders will have better customer service than the bricks and mortar lenders. It will take some time to find out if the small, online bank has a high satisfaction rating and reviews from customers.
Finding the best banks for mortgage products can take some time and patience but worth it. The peace of mind of knowing you have found a reputable mortgage lender who can give you the best rates, flexible terms, and offers are priceless. To learn more about finding the best mortgages and best mortgage brokers register for a free mortgage guidebook using the links below.