Choosing the right lender

So you have come to that point in your life where its time to become responsible and buy a house. Maybe you are expecting a baby or have outgrown your apartment. It may be that you just want to realize the American dream. Whatever the reason, most people start looking for a home without considering one important part of the art of home buying, choosing a mortgage lender.

Imagine having a friend for over thirty years that you chose off of the internet and didn’t look into very well. Choosing a mortgage lender is like choosing a friend that will be a part of your life for a very long time, and making the wrong choice can cost you money each and every month you own your home. A potential misstep can cost you thousands.

When you are looking for a lender it is a great idea to start with a few recommendations from friends and family members. Your real estate agent can also be a great source of information. Also speak to the loan officers at your bank and credit unions as they offer current account holders options that others may not receive.

As with any large purchase, you would then want to shop around for the best and lowest cost on the interest rate and fees involved in generating the loan. Some of these fees include origination fee, discount points, closing fees and inspection fees. Make sure that you include all of the various fees into your calculation as well as the annual percentage rate that you will be charged. This then gives you a more realistic expectation of who has the best deal for you.