3 Habits of a Highly Effective Borrower

When you are in the market for a refinance or new home purchase loan, it can seem overwhelming.  There are millions of advertisements online and multiple local banks are also trying to attract your business. One question you need to ask yourself is: Who do I trust to handle a financial decision of this magnitude?  And it is a big decision because it will affect both your short and long-term future.

Here are 3 things you should get in the habit of doing to become a highly effective borrower:

HABIT #1—DO YOUR RESEARCH BEFORE AGREEING TO DO BUSINESS
When considering a lender, find out what previous customers are saying about their experience. Researching third party reviews of a lender online takes a little time but may save you from regret. Make sure you’re sources are credible and not controlled by the lender. Because so many borrowers go to Lending Tree to compare, it is a great place to start. Search the business to see how many reviews have been left and if there are recent positive reviews. Do other customers recommend them? The Better Business Bureau also gives you a good idea of how a lender will handle customer service and complaints. What overall clues do these sources tell you about that company? Also, keep in mind that no company will have 100% satisfied customers so use discernment.

HABIT #2—USE A LOAN ADVISOR & LENDER YOU CAN TRUST
It’s important that you discuss your short and long-term financial goals with a licensed Loan Advisor. Think about whether you can trust who you’re working with. Do they ask the right questions? Do they understand what your goals are and what you want to achieve with your mortgage loan? Do you get the impression that they truly care and want to help you accomplish those goals? If a Loan Advisor ever gives you the feeling that you are just a number, do not continue. A quality Loan Advisor will get to know you because they will want to know where you would like to be financially in the future and how they can make that happen.  An average Loan Advisor may just want a “sale” and won’t care to know you at that deep of a level.

HABIT #3—GET MULTIPLE OPTIONS AND ELIMINATE THE BAD
This is actually very simple if you are a person who likes to “shop around”.  Get several offers to compare and contrast. Typically you can throw out the best offer and the worst offer based on how the loan is structured and what the monthly payment is. If any offer seems too good to be true, rule it out. You don’t want any surprises when it comes to a mortgage loan. More often than not—the most accurate, honest, and suitable loan option is one in the middle. A mortgage loan should be customized to your individual needs. Make sure you understand how the loan is going to benefit you and make sure it accomplishes what you need.