Choosing the “Right” Lender

Today, the majority of refinances begin with advertisements of the lowest rates or lowest costs. Refinancing is a major decision which can not only accomplish your current goals but, if structured properly, can improve many areas of your life too.

Mortgage professionals are required to pass federal licensing and state licensing requirements. They must also maintain annual continuing education requirements to stay informed about industry changes. This also ensures that consumers are dealing with a professional who should have the client’s best interests in mind. However, not all lenders are created equal.

It’s extremely important to speak with a mortgage Loan Advisor who is not looking to “win” your business just based on the terms of the loan. All too often bank and lender advertisements do not advise the best loan option for individual clients.

Here are some questions that should be answered before deciding who to trust with your home purchase loan or mortgage refinance:

1. How did your Loan Advisor begin the conversation?
   Were you asked about your financial goals? Or, did they start by asking about your income or credit score? A mortgage Loan Advisor needs to understand what you are looking to accomplish in order to propose the best loan solutions.
2. Does your Loan Advisor understand your objective?
   Were you asked why you want to refinance? Since there are so many ways to structure a loan, it is important that your advisor understands your goals before constructing loan options. A reputable professional will present multiple solutions based around your goals.
3. Will the loan help you accomplish your long term financial goals?
   Do you know what your long term goals are? A good Loan Advisor can help you realize your long term goals. To get the most value out of your loan, this is a must. Consider this: If the loan works today but not down the road, are you really being put in the best financial position?

In today’s environment, the best way to understand if your lender is the right lender for you is to do some basic research and have a conversation. Use these resources: Better Business Bureau (BBB) and Lending Tree ratings and reviews. There are many sources that will allow you understand what your experience may be like with a lender by seeing what others, who have gone though the process before you, have to say.