When it comes to mortgages, Massachusetts home buyers have their pick of lenders. From Internet lenders to local mortgage companies and banks, the number of companies and programs to choose from is quite extensive. We can’t stress enough the importance of selecting the right mortgage company for your home purchase. Here are a few reasons why.
1 – Pre-approval Validity
Buyers rely on mortgage pre-approvals to empower their home search. Imagine using a pre-approval to start your home purchase, only to find out later that you do not qualify for the loan. It can be crushing. A good lender will do more than run a few rough numbers to issue your pre-approval letter. They will review your credit report, verify income, and perform other due diligence tasks to generate a solid pre-approval.
2 – Loan Processing Time
Another important factor in selecting the right mortgage company is loan processing time. It is well known in the industry that some lenders simply take longer to review and approve loans. It is not necessarily related to the size of the company. It may relate to the company infrastructure, processing guidelines, and internal procedures. Selecting a good lender with efficient processing allows you to close your home purchase on-time, reducing stress and costly complications.
3 – Communication Process
Another consideration for selecting the right lender is the communication process. This is something that many buyers don’t think about until they experience issues. There are several people that you will communicate with including your loan officer, processor, and underwriter. With some mortgage companies, you are assigned a specific contact for each and can directly communicate with them regarding your loan. With others, you are directed to a call-center and connect with the first available rep. As you provide information and work through issues on your loan, consider which type of communication you prefer.
4 – Available Programs
Just as lenders vary, so do some of their programs. Conforming loans are generally similar among all lenders, since they are sold into the same secondary mortgage markets. However, mortgage companies might also offer loans that don’t get sold. By retaining the loans in-house, they have the ability to offer different terms and criteria. If the typical loan doesn’t quite fit your needs, then a portfolio loan might be the solution.
More on the Importance of Selecting the Right Mortgage Company
Selecting the right lender for your home purchase will improve the chances of a successful closing and reduce potential issues along the way. As Massachusetts closing attorneys, we have worked with many different mortgage companies in the area. Contact us to be referred to a reputable local lender.