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How to Choose a Mortgage Company
20 Mar 2012


There are several things to look at when you choose a mortgage originator to help you obtain a mortgage. This is one of the most important financial decisions most of you will make and it shouldn't be taken lightly.


The first thing you want to ask is how long they have been in the mortgage loan business. If it is less than 3 to 4 years, you will want to opt for somebody with more experience or at least 100 originations under their belt. At that point they have seen most of everything that can pop up on a loan and can take proactive measures to hedge their clients against a possible fiasco or mishap that caused you to miss your closing or even worse, lose your rate lock.


Second, don't be shy to ask if they have a college degree or what specializations and certifications they have to handle your mortgage. You want to make sure your originator is skilled and trained and has enough knowledge to handle one of the largest transactions of your life. If they lack a college degree from a 4 year accredited university, preferable in business or the like, make sure they have extensive certifications that are specialized in lending. Don't pick somebody based on what they tell you, ask for proof. If they want to earn your business, they will show you their credentials.


Third, ask for testimonials. If they have a good handful of sincere testimonials from former clients with telephone numbers and email addresses, chances are they are doing a good job and can handle the transaction with customer service in mind. This is the biggest tale of the tape when it comes to how they measure up to the competition. Make sure they give you permission to contact their former clients and verify the testimonial and get any additional information needed. Anybody can write a testimonial, but only the real ones are backed up with contact information.


Some other key issues that will be of importance to you are the following: What are the lender fees? The lender fees will tell you if they are competitive in the market and are the only variables they control. What is the APR? The APR is how you can compare who has lower closing costs.


Finally ask if the originator is a direct mortgage lender. This means their company funds your loan with their own warehouse line of credit. This is important because direct lenders control the entire process from start to finish and can make decisions on their own for underwriting. There are a lot of inexperienced loan officers out there right now just waiting to learn this business with you are there guinea pig. I am not sure about you, but the only times I like being a guinea pig usually doesn't involve hundreds of thousands of dollars.


My advice is for you to do your homework, interview your originators, and narrow down your selection just like an employer does in search of the right man or woman for the job and take action only once you have done your due diligence or you may be sorry you didn't.


I would advise you to use a mortgage matching service to match you with the best lender for your particular loan. Their services are free to consumers and can get you several different quotes.


Good luck with your Mortgage Search!


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