Steps for Choosing the Right Florida Mortgage Lender

You’re shopping for a Florida mortgage and you’ve received four offers from four lenders. How do you choose? The first factor most people consider is the interest rate and other costs, but that’s only the beginning. As Lending Tree explains, you’ll also want to think about the lenders themselves, not simply the numbers being thrown your way.

Here are five steps to follow when determining which Florida mortgage lender is right for you:

1. Compare fees as well as interest rates. Comparing loans based on their annual percentage rate (APR) is a good place to start, but it’s not enough. In the case of a mortgage, to get a more accurate breakdown of costs, ask the various lenders for a formal “good faith estimate” of all the fees you’ll incur with your loan; this is a standard form lenders must provide you that is more detailed than the overview you’ll get with an offer.

Also, ask about potential charges that may not appear on that list, such as prepayment penalties. You’re not just comparing numbers here: determine how honest and upfront the lender is acting.

2. Consider your individual circumstances. Bigger lenders aren’t necessarily better than smaller ones, especially if you have unusual circumstances. For example, some lenders specialize in loans for people with poor credit, while others may have more options for those with small down payments. If you have special borrowing needs, look for a lender with experience working with people in similar situations.

3. Look at the range of loan types available. Look for a lender who offers a wide variety of loan types, from conventional fixed-rate and adjustable-rate to newer ones such as hybrid ARMs and option ARMs. Your lender should be able to match you with a Florida mortgage loan that’s right for your financial situation and risk tolerance.

4. Evaluate the level of customer service. When you’re comparing offers, ask each lender about their policy regarding locking in their quoted Florida mortgage rates and see whether there is a fee. Also, ask them to amend one of the terms (such as a payment cap) and see how willingly they agree. You’re looking for flexibility and responsiveness.

And also note how well they listen to you. If you ask for a 30-year fixed-rate mortgage, they ought to present that as an option, not push you toward something different, such as an interest-only loan. If you’re not getting good service from a lender who is competing for your business, you’re not likely to get it after you’ve agreed to work with him.

5. Check out the lender’s reputation. Word of mouth is important in every business, including the Floria home loan market. If you’ve never worked with a particular lender, you’ll want to find out the opinion of people who have.