Simplifying the Process of Choosing the Right Mortgage Lender

Mortgage document and house keyPlanning to invest in a new home in Clarksville, Tennessee? Or needing some refinancing to save your ancestral home? A mortgage lender can help.

There is a long list of mortgage lenders in Clarksville so you have to pick the most suitable. Often, consumers are faced with high rates, unexpected hidden costs, and too few loan choices. There are a number of ways to get around this dilemma, but it need not be a difficult voyage through the mortgage wilderness.

A fundamental rule is to simply match your needs to the right type of lender with the right type of loan rates and fees. Never get overwhelmed with principles and promises. Make the hunt simple.

Direct Lender or Mortgage Broker?

Decide between a direct lender and a mortgage broker. Direct lenders include banks, mortgage banks, as well as non-bank lenders. They directly deal with the loan source, making you save more in processing time and monthly payments. A drawback would be fewer products to choose from. A mortgage broker, meanwhile, is a middleman representing the products of many lenders. As such, there are varied choices, more lender options to find better rates, and faster time to shop for a loan. The issue: hidden costs.

Comparing Loan Estimates

If you have already made a shortlist of the right mortgage lenders for your needs, it is time to compare their rates and fees. Comparing loan estimates is critical. Will one lender’s mortgage/refinance rate of 4.5% on a 30-year fixed loan strain your monthly budget? Are the closing costs acceptable? A decidedly fair loan estimate is not difficult to spot if you do enough research by looking at prevailing market prices, and comparing fees and rates online. This way, you will be prepared enough to talk with a lender.

From getting a quote to closing a loan, fetching for a home loan and refinancing is a lot of work. But simplifying your hunt, with some good research, eliminates the added stress.