Financial Facts

HOW TO FIND THE BEST MORTGAGE LENDER FOR YOU

When you are looking to buy a home, there are many factors to consider. You’ll want to identify the type of home you want, then research to find a mortgage with the lowest interest rate and the best terms. Locking in a low interest rate is important, but the lender you choose also will affect your mortgage experience.

According to the Consumer Financial Protection Bureau, nearly half of consumers don’t shop around before choosing a mortgage lender. It makes sense to take time to look for the best deal but also to determine who will be the best lender for you. Here are some tips for choosing one:

Find the best lender for you There are many types of lenders, including local and retail banks, credit unions, and online mortgage lenders. Look for a lender who is upfront about all loan costs, including fees. You also may want to consider convenient ways to apply for, make payments to and keep track of your loan. Many lenders have online account management systems and mobile apps that can simplify the mortgage loan process.

Ask for a referral Ask friends and family which lenders they have used for their mortgages. Be specific when asking about the terms and service they received. If they have had good experiences, check out those lenders to see if they meet your criteria.

Know your preferred lender’s reputation Once you select two or three lenders for final consideration, review their credentials by visiting these websites:

• The Nationwide Multistate Licensing System Registry at nationwidelicensingsystem.org to ensure your lender is licensed and in good standing in your state.

• The Better Business Bureau at bbb.org to see the lender’s rating.

• The National Association of Mortgage Brokers at namb.org.

Research loan options and rates When you apply for a mortgage, lenders will evaluate your financial situation, including your ability to repay a home loan. Take some time to put your finances in order so it is easy for lenders to review your history. As you begin to work with a few lenders, ask about their mortgage products, fees and the timeline for the loan process. This will help you evaluate the whole loan process.

Michigan State University Federal Credit Union has mortgage products for all types of member needs. For example, our First-Time Home Buyer’s Program allows qualified members to lock in an interest rate for 90 days and offers down payments as low as 3%, flexible terms ranging from 10 to 30 years, variable or fixed-rate mortgages and more. Members can also apply for and manage their mortgage loans through our MSUFCU Mobile app.

Finding a trusted lender will help you to purchase the home you want, secure preferable loan terms, and enjoy a seamless home buying experience. ■

Deidre Davis is the chief marketing officer at MSU Federal Credit Union. MSUFCU’s headquarters are at 3777 West Road, East Lansing, MI 48823. Contact Davis at deidre.davis@msufcu.org or (517) 664-7877.

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