How to Pick a Lender
November 2, 2009 by Customer Care
How to Pick a Lender in Des Moines, by Des Moines Real Estate Experts RE/MAX Real Estate Concepts
Picking the right lender is very significant to ensure that you get a smart economical deal that works smoothly and so that you get a great home. Here are some valuable tips for choosing a lender in the Des Moines real estate market.
Tip #1- It is best to consult a real estate professional in the Des Moines while picking a lender. Real estate professionals will recommend only the best local lenders as they constantly appraise lenders’ ability to deliver loans and contract terms. They will never suggest untrustworthy lenders to their client as the failure of the lender will cause them to lose their clients and good reputation. Hence they usually suggest only extremely well known lenders that they would use for their own mortgages.
Tip #2- It is better to use a local lender company in the Des Moines area than opt for online lenders. Local lenders are well versed in the local laws in the State of Iowa. They can solve your mortgage problems better when they arise. Online lenders may entice you with paltry savings; however they may not have efficient loan officers and may not be licensed to lend in your state. These anomalies may come to light only when it is too late. Using online lenders may cost you your home.
Tip #3- You must have a face to face meeting with the lender before you fix him for a contract. This helps you to assess whether the personality of the lender and his staff complements your own, so that you will be comfortable working with him during the loan period. It is better to avoid imposing lenders who compel you into taking one kind of loan with specific terms and conditions. The lender should give you multiple options like ARM mortgages or negative amortization fixed rate loans.
Tip #4- Choose only a lender who makes complete disclosure of all aspects of the loan and puts everything in writing. The lender should reveal all fees, payments and commission calculations of the loan. Costs like property taxes, credit repot inspection costs, escrow fees and pest examination fees should also be disclosed upfront. Your lender must furnish you his GFE-good faith estimate within three days of applying for the loan. He must also enlighten you on prepayment penalties that he will impose for loss of profits due to refinancing and rate slashing when you pay earlier than expected.
Tip #5- Choose a lender who will approve your loan immediately to avoid troubles caused by delays. Lenders with in-company approvals will be able to approve loans faster than lenders supporting out company approvals.
There is a lot of free information available to you about buying, selling or investing in Des Moines real estate. For complete information about the Des Moines real estate market, saleable homes, property values and more please visit the most complete website online dedicated to everything Des Moines real estate at Real Estate with RE/MAX. Please feel free to contact us with any of your real estate or mortgage related questions and we will be more than glad to answer your questions. Call us at 1-800-708-5890 or email us at dsm@realestateconcepts.net.
Filed under Des Moines Real Estate Blog
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