How To Choose A Mortgage Lender

• Are you a first time home buyer?

• Do you find it difficult to choose a lender?
• Are you confused about how and where to start ?

Don’t worry! We have the answers to

your queries.
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 Mortgage Industry

• Mortgage industry is very competitive. There are a plenty of

small and big lenders operating in it.

• Mortgage industry is highly regulated by federal laws, few

federal enforcement agencies and by many states laws.

• Mortgage lenders may also be affiliated with state or federal

agencies that provide funds or guarantee real estate loans such
as HUD and Freddy Mac.

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 Lender Deciding Factors

To guide the first-time home buyers we have drafted six factors they must look in a mortgage
lender.

1 Reputation/ Track record

2 Service

3 Lender fees
4 Closing cost
5
Longevity
6
Competitiveness

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 Lender Deciding Factors

Reputation/ Track record Service

1 Whether you opt for a small or a 2 Service is important part of any
large brand mortgage lender, deal and a mortgage is no
one important thing you must different.
check for is their reputation in
the market. Their track record In addition to reliable and
will tell you about their previous quality service, the lender
performance. should offer additional services
like free counseling,
Also, you can ask for educational materials and free
recommendations from your credit reports
family, friends, neighbors,
colleagues or other
acquaintances.

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 Lender Deciding Factors

Lender fees Closing cost

3 Lender fees is as crucial as 4 Fees such as Broker Fee, Loan

interest rate as it constitutes 1-2 Lock Fees, Commitment Fee,
% of your total mortgage value. Tax Service Fee and
Some typical lender fees include Processing Fee constitute
application, origination/service closing costs. It can be
and appraisal fees. anywhere between 10-15% of
total mortgage value.
Opt for a lender who charges
you in the minimum possible Always look out for a lender
way. who charges competitive
closing costs.

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 Lender Deciding Factors
Longevity
5 Look for a company that has
been around for a long time in
the business. Find out how long
the lenders on your list have
been in business.
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Competitiveness
6 Shop, compare and negotiate.
Approach at least 4-5 lenders,
fill in the application forms and
compare the offers to find out
whoFor is the
relatively less costly,
best deal
more competitive and then
negotiate for the best financing
deal.
 THANK YOU!

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