Shopping for Loans: Comparison Shopping

So you have decided to refinance and have chosen the loan that’s right for your circumstances. You’ve taken your ideas and thoughts to your tax professional and financial advisor and gotten the green light. Congratulations! Now you get to shop for your loan and lender. In other words, the time has come for you to start comparison shopping between home loan lenders to find the best home mortgage refinancing options for you.

Remember the Simple Rules of Thumb

Well, if your decision to get home mortgage refinancing and choosing the loan product weren’t difficult enough, this will put the icing on the cake. However, if you follow some simple rules of thumb in choosing a lender, you can narrow your choices quickly down to a manageable number.

Don't Get Bogged Down with Ads

The first thing you should do is throw away the flyers, mailings, and emails you get from lenders trying to sell you a loan. Don’t take telemarketer calls, and if anyone comes to your door selling home improvements—with a phone number to call a lender they work with—shut the door.

Word of Mouth is Still King

Instead, ask your family and friends who they use, and surf the internet for the big name lenders, like E-loan (www.eloan.com) and LendingTree (www.lendingtree.com). Don’t use fly-by-night looking websites, even if they do promise no cost loans or better rates—you will pay for it in the long run. This is especially true if you have rebuilt your credit and are looking to get out of a sub-prime loan—don’t let the sharks eat you!

Get a Complete List of All Associated Home Mortgage Loan Costs

One you have decided who is reputable, call them and ask for a complete list of their loan costs and fees, and what they will require you to do. Don’t forget to include your current lender in this process if you’re happy with their service—they may give you a good discount on fees for your loyalty. Remember to tell them that you will not pay for anything they don’t disclose up front—with this statement, your list will shrink. Some lenders are in the business of slipping in blank documents and last minute fees the conveniently “forgot” to tell you about. Good lenders don’t forget details—details are too big a part of their business.

Visit with Representatives from the Finalist List of Home Mortgage Loan Lenders

Once you have narrowed your search to a few lenders, take the time to talk to representatives. Once you have the best rates, lowest costs, good timing, and a few people you like to work with, it should be easy to make your choice from those. Even though the online loan services don’t have you work face to face with a representative, there is still a “feel” to working with them—decide if you like that or not.

Check with the Chamber and BBB

Also check your local Chamber of Commerce and Better Business Bureau for references. And don’t forget the value of the advice of experts—talk to a lawyer if you must to determine the safest loan company for you.