Shopping for Home Mortgage Refinancing Loans: How to Find a Lender

Home Mortgage Refinancing Lenders -- An Introduction

Finding a lender can be a daunting task. Besides being inundated daily with slick advertising and telemarketing calls, consumers who search the internet for a lender will find a dizzying number of choices. Although your choice will depend on your situation and financial stability, here are some general sources for loans.

Brokers and Banks and Home Mortgage Refinancing

Mortgage brokers and bankers create most of the real estate loans in the U.S. The broker is like a matchmaker—he helps find the right borrower-lender combination, and often has many lenders available for specific needs. You may also hire a broker to find you the best interest rates. The mortgage banker acts as a broker for a bank (sometimes more than one), and the fees and loans are limited by bank policies. Make sure you understand the services and fees the broker provides before making commitments.

Savings & Loans and Credit Untions and Home Mortgage Refinancing

Don’t forget to check the Savings & Loans, and Credit Unions. The primary income for S&Ls is real estate loans, and they are better regulated than they were years ago when they hit the skids. If you have a credit union, it can be a very good way to get a real estate loan. Check with a credit union to see how the advantages compare to other sources—from interest rates to better terms, there may be an attractive reason for you to consider them.

Online Lenders and Home Mortgage Refinancing

Online lenders are very popular these days, and work well for borrowers who have done some research on mortgage loans and are well informed. Check with any company where you have an investment plan, like mutual funds or retirement accounts. Charles Schwab is one of the many investment companies that offers mortgage loan products. Because the internet is fraught with predatory lenders and unscrupulous companies, make sure the one you use is reputable.

Be Careful When Selecting a Home Mortgage Refinancing Lender

To avoid being taken by the dishonest, follow some simple rules. If the mortgage company has to stick a flyer in your door, send you mail (especially without a return address), call you on the phone to sell you a mortgage, or visually assault you with popup ads on your computer screen, consider them less than above board. No reputable lending company would have to do that.

If you think the representative you’re talking to is rattling off some script designed to take you to the cleaners, you’re probably right—follow your instincts. Other warning signs are lenders who tell you that you must sign immediately and fails to tell you about your three days to cancel the agreement; unreasonable promises by the lender; high rates, with the lender claiming you don’t qualify for better ones; and a lender’s failure to explain the loan to your satisfaction.

Protect yourself—gain knowledge of the mortgage lending field and become an informed borrower.