Home loans are not only available for first time buyers and veterans. You can get a loan for a variety of reasons, including if you want to renovate an existing property, purchase a secondary property or refinance an existing loan. Since you can get stuck with a lender once you sign on the dotted line, follow these tips to help you make the right decision:
Check Out Online Reviews
Plenty of websites have important details about financial institutions that offer loans like the home loan lender Intercap Lending. With this example, you can find reviews of Intercap Lending all over the web, through the Better Business Bureau and popular online ratings and reviews sites like Yelp and Lending Tree.
Look Beyond Star Ratings
Many people base their decision on the number of stars a lender receives on a reviews site. The problem is that the total rating calculation is skewed based on the number of people who rated the financial institution. For example, if only one person reviewed a lender and gave the lender five stars, then you need to dig deeper because that one person might have been the only person to have a good experience out of the last ten borrowers who simply failed to leave reviews on a particular site.
Seek Out Subtle Warnings
When listening to word-of-mouth referrals and reading online testimonials, always watch for seemingly slight negative experiences that could potentially cause you a lot of trouble. For example, someone who gives a glowing review might mention offhand that they had problems with a small hidden fee or single poor customer service incident. A small problem for them might be a much bigger one for you depending on the size of your loan or emergency. Other problem areas include broker delays caused by slow bank responses and discounts that a lender recouped elsewhere by raising interest or adding an extra fee.
Make a Detailed Spreadsheet
One of the best ways to pick a home lender is by setting up a spreadsheet that outlines the pros and cons of each lender because it can help you more clearly see the differences between them. Make certain that it outlines every aspect of the home loan process from the initial application requirements to closing and repayment with URLs to web pages where you found the information. A spreadsheet can also make it easier for you to show a lender during negotiations that you can get a better estimated rate and repayment schedule with one or more of their competitors.
No matter your reason for needing a home loan lender, these tips can help you find the right financial institution to meet your needs. Try them out today.