Picking Your Lender
Choosing your lender is more than just picking the lowest interest rate. Here are some of the areas you'll need to look at:
It's not the only consideration, but it's one of the most important. Local and national lenders alike advertise their interest rates; newspapers also list rate comparisons, often in the real estate section.
This is a percentage of your total loan amount, payable to the lender when you close on your house. If you're borrowing $100,000 with 2 points, that means you'll pay the lender $2,000 at closing (or add it to your mortgage loan) as a separate lender fee. A low interest rate may not be much of a bargain if it comes with high points.
Relationships and reputation
Your mortgage is almost certainly the biggest loan you've ever had - you need to be comfortable with your lender's integrity and service. Make sure you check your bank or credit union's interest rates; it may offer special rates for current customers. You'll also want to check with the larger and more reputable lenders in the community. If you're considering one of the many Internet-based lenders, make sure you do your homework and check the lender's reputation as closely as you would that of a bricks-and-mortar bank.
I can help you find and choose the right lender for you; just give me a call to get started.