5 Signs You Have a Good Lender
5 Signs You Have a Good Lender
When new buyers are ready to start the process of getting approved for a loan, it’s time to find a lender that will keep their best interest in mind and set them up for success.
It can be difficult to find someone trustworthy to have your best interest in mind instead of a paycheck for themselves. Not all lenders are created equal, but we know that there are definitely some hardworking, transparent and trustworthy ones out there who do everything in their power to help their clients!
The best way to know if you have a good lender is to have criteria to look for. So, before you select a lender and finish your mortgage application, we’ve listed some things below for you to consider.
Questions to ask your potential lender:
- How long do you expect the process to take?
- Who will be my main point of contact throughout the process. Will someone else take over at some point or will it be the same person throughout the whole process?
- How will we communicate?
- Which steps will take place in person vs online?
- How long is my interest rate locked in? If the house does not close within the expected number of days through no fault of my own, will I have to pay for an extension?
Now that we have established what you should ask them, let’s discuss what your lender should be doing for you and how you can determine if you have a good one!
1. They ask YOU lots of questions
If a mortgage lender is not asking you so many questions that you tell yourself, “there can’t possibly be any more questions,” then it probably isn’t the right lender.
It would be impossible for a lender to do their job correctly without a sufficient amount of information. If there are not enough questions asked, that may indicate that your lender is fabricating numbers, facts and information so that the transaction will be in his favor.
When a lender only presents one type of loan, this is also a good indication that the lender is working for his own best interest and quite possibly only is well-versed and educated about that one type of loan. Trust your gut!
2. Strong communication skills
A professional mortgage lender will be able to explain the most complicated process in a very simple way to their clients. They should be so familiar with their industry, that they can break it down plain and clear to someone completely foreign to the mortgage industry.
If there is any confusion on your part, never shy away from asking for clarification. Lenders love it when clients ask questions because it means there will be less of a chance their client is surprised or upset later on!
Your lender should also be quick and respectful to respond to your emails, texts and phone calls. They should be answering your questions in a timely manner and never calling you at inappropriate hours of the day or night.
3. Caters to your preferences
Do you prefer to text as your form of communication? Your lender should be respectful of that and use that as their primary form of communication with you.
A disrespectful or bad lender will not care when you make it clear that you prefer to text or email rather than call. They will still call you, time after time and disregard your preferences.
4. Has your best interest in mind
Just because you qualify for a certain loan amount, does not mean that you can afford the monthly payment that comes along with it.
Once you find out what your monthly payment would be with a certain loan amount and you feel uncomfortable with that amount, speak up! Tell your lender the dollar amount that you are not willing to go above in your monthly payment. If you have a good lender, your loan amount will lower and you will not be qualifying for a home that you cannot afford.
5. Problem solver and deadline oriented
When issues pop up, you’ll need to trust your lender to be a creative problem solver. They will not come to you for solutions or ideas, but will be the one to present those solutions to you.
Good lenders also love to be on time, they appreciate when their transactions close on schedule and most of the time strive for a shorter closing time if possible, without cutting corners.
If your lender is too lenient on the fact that your transaction might not close in 30 days, it’s time to look elsewhere. You deserve someone who will fight for your transaction to get through on time and make sure they have tabs on where it is in the process, while giving you updates about it.
You deserve a good lender who will help you get the home of your dreams in the price range that you can comfortably afford.
Check out eHome America’s Homebuyer Education Course to fully prepare for the home buying process!
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