Choosing a lender is a very important part of the home refinancing process. It is important to understand the different refinancing options and know how they work, but none of this matters if a homeowner cannot find a lender willing to provide them with the rates and terms they are seeking. Choosing a lender can be a long and difficult process, but there are ways to make it easier. One easy way is to ask friends or family members who have recently refinanced for advice. In addition, homeowners can do their own research to determine which lenders can offer them the best rates. Finally, homeowners should determine if finances should be the dominant factor in choosing a lender. Surprisingly, in most cases, it is not.
Ask friends and family for advice
Friends and family members who have recently refinanced can be a homeowner’s most valuable resource in the lender selection process. What makes these friends and family members so valuable is that they are likely willing to provide you with a fairly candid opinion of the lender they used. This opinion may be positive or negative, but in either case, it is useful to the homeowner. If the opinion is negative, the homeowner can remove this lender from the list of lenders they are considering. Conversely, if the lender comes highly recommended, the homeowner can consider this lender more carefully.
Homeowners who want to know which lender offers them the best rates and finance terms should do a lot of comparison shopping. Homeowners may even consider requesting quotes from each lender. This should make it completely clear which lenders are willing to offer the homeowner a more favorable rate. When comparing these offers, all factors should be considered to ensure that the offers are being compared fairly. For example, each offer should be broken down to determine monthly savings, total savings, etc. All of these statistics will make it easier for homeowners to make an informed decision when the time comes.
Consider more than just finances
Finally, while interest rates, loan terms and other financial matters are important, none of these are more important than being treated fairly by the lender. For this reason, homeowners should carefully consider all of their lenders and should determine if they feel the lender is responsive to their needs. For example, a lender who does not return phone calls promptly or does not answer questions truthfully and accurately may not be the ideal lender for a homeowner, even if he is the lender offering the best rate.
In addition, homeowners should trust their instincts about trusting their lender. Some lenders don’t seem to know what they are talking about at all. Homeowners may be inclined to avoid these people because they may end up doing more harm than good in the refinancing process. Conversely, some homeowners may be immediately impressed by another lender’s honesty and intelligence. In most cases, homeowners may choose a second lender as long as the rates offered by each lender are comparable.