Finding the Right Mortgage Company

By: Jason Petrina
There are countless mortgage companies around the country. There are so many, in fact, that it is often difficult to know which way to turn when it comes to choosing a mortgage company for your mortgage loan. The first step to finding the right mortgage company is knowing what type of mortgage loan you want to get. First, determine whether you will want an FHA loan, a conventional loan, or a VA loan. The type of mortgage loan you get depends on your income, the cost of the home you hope to buy, and in some cases, your credit rating. You can talk with your real estate agent to determine what type of loan you should seek. If your real estate agent can't help you figure it out, go visit a mortgage lender that offers all three types of loans, and get their opinion. This doesn't mean that you have to use this mortgage company. The information is generally free.

Determine whether you need a fixed rate mortgage loan, or an adjustable rate mortgage loan. Fixed rate loans are the most common, and the most popular. This is because your interest rate will not fluctuate for the life of the loan. Fixed rate loans are available in 15, 20, 25, 30, and even 40 year terms. Remember, however, that the longer the term of the loan is, the more you will pay in interest over that period of time. Adjustable rate mortgage loans allow you to own your home in a shorter amount of time in most cases. Adjustable rate mortgage loans have interest that fluctuates with the market conditions. In most cases, however, the home owner starts with an adjustable rate mortgage, then later changes to a fixed rate mortgage within seven to ten years.

Starting with an adjustable rate mortgage loan often gets the homeowner a better fixed rate loan later. Once you have established the type of mortgage loan you are shopping for, talk to your real estate agent for recommendations. Note that real estate agents often work closely with specific mortgage companies, which may help you to get approval for the loan, but may not be the best mortgage company for you. Shop by phone first. Call ten or fifteen mortgage companies, and ask them what their rates and terms are on both fixed rate and adjustable rate mortgages. This will help you narrow down your search.

With your list cut down, start visiting the mortgage companies. You might want to call ahead for an appointment. Don't be nervous - you are interviewing them, they are not interviewing you, even if they try to make it seem that way. During the first visit, you are not applying for the mortgage loan; you are just gathering more information. Specific things you may want to know about are closing costs, fees that the mortgage company will charge you - other than interest, and prepayment penalties. Also ask about points, and what percentage is charged for each point. You may find a mortgage company that offers 'no points, no fees' loans. While these loans may sound like a good idea, you might want to look around and see what the catch is.

When it comes to mortgages, the mortgage company is out to make as much as they possibly can - just like any other type of business. They seldom give something for nothing in return. Pick up as much literature as possible from the mortgage companies that you visit. Take that information home, and read through it carefully, ensuring that you understand it all. If you don't understand something, call the company in question back, and find out just how helpful they are. This will help you eliminate more companies from your list.

By doing your research, you will be able to narrow your search down to one or two companies for your mortgage loan. The important thing is to not rush into anything, and not to be pressured into a mortgage loan that you don't want. Remember, if one mortgage company is willing to give you a mortgage loan, there are others out there that are also willing. Take the time to find the very best one to handle your mortgage loan.




About The Author:
Jason Petrina is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com