Updated: March 26, 2014 at 4:14 AM

What to look for in a mortgage lender?

Category: How To Mortgage Broker/lender

Whether you go directly to a mortgage lender or go through a mortgage broker, you will still end up borrowing money from a lender.

Aside from getting the lowest interest rate, here are some additional criterias you should look for

1. Does your mortgage lender require a lawyer to obtain mortgage? If you are purchasing a house, then this requirement from the government. So the lender have no control. However, if youa re renewing your mortgage or re-finance your mortgage, this requirement is at the hands a of the mortgage lender. This requirement will cause you an additional 600-1200 dollars in lawyer fees!

2. Does your mortgage lender require you to pay for a home appraisal? Once again, if you are purchasing a house, I encourage you  to get a house appraisal to make sure the house is appraised correctly. But if you are renewing or re-financing your house, then the appraisal serves no value to you. The appraisal fee can be around $250-$500. The lender may cover this cost.

3. Does the lender allow you to access and make prepayments on-line instantly? The ability to view your mortgage and make prepayments on-line instantly is a perk you want. Most large lender have their customer mortgage viewable on-line. Smaller lender do not. I encourage to simply not go with small lenders. Large companies should be able to offer your lower interest rates unless if there is something wrong with your credit. Secondly, some large companies like ING only allow you to make prepayments during the payment date. So if you are scheduled to pay your mortgages on a monthly basis, then you can only make a prepayment once a month. This is an incredible drawback. Having to wait a month to make a prepayment will cost you plenty depending on the size of your mortgage. Simply put, go with another bank that allows you to make prepayments the day you have the money to do so!
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