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Choosing a Mortgage Lender and Shopping Around to Save Money

Just as there are many types of mortgages and mortgage deals to choose from, there are also many sources where you can go to get a mortgage. Your key choices are to use a mortgage broker, a more general financial adviser, or shop around yourself and go direct to the mortgage lender. For many people, choosing a lender means finding a mortgage company offering the lowest APR rate.

When choosing a lender, you should consider the competitiveness of the lender’s rates, their fees and penalties, their customer service and their reputation. You’ll also want a lender you can trust, and someone you can work with effectively. Remember you’ll have to deal with this company for many years to come.

Shop Around to Save Money

Before you start shopping around for a mortgage or home loan, you need to establish exactly what you want so that you do not waste your time looking at deals and offers that will not save you money. You should also learn how to compare mortgages or choose what features of the finance package are important to you.

The first step is to ask your friends or family for recommendations of potential mortgage lenders. Then contact several lenders and let them know that you’re shopping around for the best mortgage rates. You may want to discuss your needs with banks, credit unions, mortgage companies and brokers. Comparing different loan packages will help you get a better deal.

Your next step is to read expert opinions in national newspapers and magazines. These publications usually publish editorials that rate mortgage and loan deals from various banks and lenders. This information will give you a better idea of what to expect when you start shopping around.

1. Loan Comparison Websites: Some web sites offer services that allow you to compare thousands of mortgage loan deals from different lenders. All you have do to is, enter a few details about the kind of mortgage you’re looking for and their software will produce a list of lenders based on your search criteria. You can then contact the lenders that you’re interested in. This is one of the fastest and easiest ways to shop around for a mortgage online. The only disadvantage with this approach is that some of the web sites that offer this service only show results from mortgage lenders who have paid to be included or from whom they receive commissions.

2. The Major Banks and Finance Companies: Visit the web sites of the major banks and find out if they have any special offers. You can do this easily by making a list of all the banks or finance companies that you know and visiting their websites and taking note of their rates for the mortgage deals that interest you. Look for their “press release” link and find out if they have recently launched any special deals. You may also consider subscribing to their news feed if they offer subscriptions on their site.

3. Mortgage Loan Brokers: You can also get a loan deal through a broker. Most independent brokers investigate all the loan deals on offer from most lenders in the market to find the best for you. Some brokers only choose from a selection of lenders so check how independent the Mortgage broker is before applying. If you do not want to go directly to the lender for a mortgage, you can approach an advisor or a broker to search the market for the best mortgage deals.

4. Specialist Mortgage Lending Companies Specialist lenders lend to a particular type of niche market. Many of these specialise in providing mortgages for people in special circumstances who would not normally be offered a loan by their bank or building society. This includes people with adverse credit, the self-employed, part-time employed and those purchasing overseas properties. Many mainstream lenders have established specialist subsidiaries for non-standard mortgages such as these. You may have to deal with them over the phone, by mail or over the internet as most of them do not have a wide network of branches across the country.

So if you want to get the best deal on a mortgage or home loan, you can either shop around yourself or you can use the services of an independent mortgage broker. Using the methods outlined above you should be able to find a deal that’s right for you. Take time to choose a lender so that you can save money on your mortgage loan. There are hundreds of deals available out there.


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