Finding A Mortgage Lender

mortgage lender

Finding a good mortgage lender is hard work. It can be done with proper due diligence and care. There are several ways prospective homebuyers can buy a home. You can search the internet for reviews of lenders. Also, you can ask through your social network about who people bought their homes with. Potential homebuyers can work through a mortgage broker or a bank loan officer. There are pros and cons to working with each of these groups and they will be discussed.

Use Bank Loan Officers

Bank loan officers typically work at a credit union or a bank or another top of lending companies. Their jobs are to sell and process mortgages and other types of loans that their company makes. The loan officer works with you to find a loan that suits the homebuyer’s needs. If you pass the application process, your credit is approved to commence the home buying process.

Look for a Mortgage Brokers

Mortgage brokers get paid to bring lenders and borrowers together. They work with many different lenders to secure the best mortgage loan for them and the borrowers. These mortgage brokers seek out homebuyers and determine their financial risk. If the mortgage broker thinks the potential homebuyer is a low risk of defaulting, they set them up with a lender

It should be noted that mortgage brokers do not always act in their client’s best interest. Sometimes they will set people up with the most profitable loans. This may mean a loan that is terrible. There are predatory mortgage lenders around so potential homebuyers should be aware of this.

Ask your Real Estate Agent

Real estate agents are good sources of knowledge. They are usually good people to ask about finding a good lender. Potential homebuyers should be careful because sometimes the builder of the homes offers loans. Buyers should be wary of this and always shop around and look for other loan offers.

Ask a Friend

Word of mouth advice is often the best advice. This is usually the most candid way to get advice. You can get the pros and the cons from a friend or someone else in your social network that has bought a home. You can also benefit from a friend’s personal advice on what they could have done better. If you do not know anyone personally who has bought a home, then you should look for homebuyers.

Internet

The internet is a good way to find a mortgage lender. Possible homebuyers can look online for reviews and experiences people have had with companies. The internet has limitless information. Some good sites to look at are zillow.com. Although this website mainly looks at home values sometimes people advertise mortgage lenders on the website. However, prospective homebuyers should realize sometimes companies review themselves or pay people to do reviews.

These are just some of the ways to find a mortgage lender. If you search though all these various sources, a prospective homebuyer should find a great lender to work with.

Mortgage Fraud

No one wants to get caught up in a mortgage fraud scandal as the buyer or seller of the home. If you lie on any part of your application, this is considered mortgage fraud. This should be avoided at all costs. However, there are other types of mortgage fraud as well. During the home buying process, you are working with various types of real estate and financial professionals. There are many ways that they could be using deceptive practices. This is a guide to avoid it.

For Sellers

They should get previous business professionals contact information who has worked in real estate or with mortgages professionals. This will help people avoid dealing with the wrong people. Also, it is important to make sure the professional you work with is licensed. It is also important for sellers to comprehend everything that they sign. Hire a lawyer if something is not clear. Also, it is important to not sign anything with information left blank. This means someone could fill in the blank part however they want and that could be a trap. It is important for sellers to be firm about their asking price. Sellers should not agree to an amount above your asking price. This could lead to mortgage fraud. This extra important if you are asked to make up the difference after the property closed. You should also deny in extra money for ‘repairs’ or anything of that nature. This could lead you to fraud. It is also important to be careful of proposals that claim will save you from foreclosure. The seller could end up paying thousands of dollars and end up losing their home. It is a better idea to work with a good, reputable lender that will give you the whole set of closing documents.

For Buyers

Homebuyers should look out for “no money down” offers. This is a red flag for sure. It is important to review the sales history of the property you would like to purchase. Also, it is important to have your own real estate professional or appraiser determine the value of the home you would like to purchase. It is important to make sure the seller really owns the property. There are scams like this that happen so it is best to take caution. Also, do not give any personal information to someone claiming they are going to purchase a house for you in their name. This would be a bad move that good lead to legal problems for years to come. Just like sellers, buyers need to understand everything that they sign during the home buying process. Do not sign anything you do not understand. If there is any lack of understanding, hire a lawyer to assist you. As mentioned before, do not sign any forms with information left blank or that may contain incorrect information. Many times a broker will try to overstate the homebuyer’s income in hopes of making more money for themselves. You should always deal directly with whoever you are borrowing money from so there are no discrepancies. Every homebuyer should have the complete set of the closing documents. This will contain all the information they need and protect themselves against fraud.

You should be honest about your employment income. If you lie about it, there is potential for this to escalate. You should make sure that the professional you are working with does not lie about this as well. This could be a big problem. These are all things to look out for when you are either a seller or a buyer in the process.

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