Savvy Buyers Don’t Settle For The First Mortgage Loan They’re Offered

When it comes time to buy a first home, most buyers will consult a familiar lender, like their local bank, for a mortgage loan. Although that can simplify the process, it will rarely yield the best loan option. For optimal results, consumers should go “mortgage shopping” and meet with at least two lenders before making a decision. Here’s why:

A Special Promotion Could Save You Thousands

Since there are many different types of mortgage lenders – commercial banks, thrift institutions, credit unions, and mortgage companies – there are also many different mortgage products. At any given time, one lender may be offering a special promotion on the exact type of loan instrument you want, and you’ll never know about it unless you take the time to research.

Not All Loan Fees Are Created Equal

The cost of your new home won’t be the only financial obligation associated with a mortgage loan – there are also loan fees for application, underwriting and processing. Some lenders are willing to lower or even waive some or all of these fees, while others won’t consider it. It pays – literally – to ask when interviewing potential lenders.

Style, Knowledge and Helpfulness Will Vary Considerably

Many people are ultra-picky about who cuts their hair or provides medical treatment, and with good reason. Differences in style, personality, knowledge and experience, and level of customer service vary significantly. The same can be said for mortgage lenders, making it important to meet with at least three before choosing the company that feels like the best fit for you.

A mortgage is a long-term financial obligation that should not be taken lightly. Savvy consumers who do their homework before selecting a lender will end up well-positioned to make the best financial decisions.

Image via Flickr/atishnayar