For homebuyers who are looking for a new mortgage and homeowners wanting to refinance, the challenge isn’t finding a mortgage lender, but sorting through all of the banks, online lenders and mortgage brokers who are eager to take your loan application.
In fact, sifting through all of the options and lenders that are available can be daunting.
In today’s financial environment, it is even more important to work with a company that you can trust to address your specific home loan needs and who can deliver what they promise.
According to Jeff Gerner, president of Commerce Bank’s mortgage division, when choosing a lender for a home purchase or refinance, there are several factors to consider.
“Where you get your home loan matters – it’s not just about the rate,” Gerner explains. “Homeowners should choose a lender with a solid performance history for making smart loans -- a lender with reputable lending practices, and who is accountable for the loans they make.”
Gerner says there are several questions consumers should ask in order to help them make a smart lender decision. For example, will the lender take time to find the right loan option for you? Who prepares the loan documents? Who regulates the lender?
Gerner adds that borrowers should also keep in mind that banks differ from brokers in terms of the loan rates they offer.
“Brokers may be able to provide what appear to be lower loan rates,” he said. “They can also contain questionable terms that are unfavorable for the customer. In addition, brokers sell the loans they generate after the loan has closed so the customer may end up making their payments to a company they’ve never heard of. This can make resolving problems more difficult.”
Beyond speaking with the particular lender, consumers are also advised to perform a little investigative work on their own, such as consulting the Better Business Bureau website to verify if a particular lender is in good standing and to find out if any complaints have been filed against them.
It is also a good idea to check with a title company and ask if the lender has a reputation for increasing rates or fees at closing, or if they are aware of any unethical or fraudulent behavior on the part of the lender in order to close a loan.
Regardless of whether a mortgage customer is buying a new home or refinancing, taking the time to research and feel comfortable with lender options is worth the effort.
Over the years, Commerce Bank Mortgage has helped thousands of individuals, working with them on a personal basis, to address their home purchase and refinance needs. Commerce Bank is dedicated to finding the right home loan solution for you.
For more information about Commerce Bank Mortgage, visit www.CommerceBank.com/mortgage. Commerce Bank is an Equal Housing Lender.
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