WEOKIE Federal Credit Union By WEOKIE Federal Credit Union • June 18, 2020

How to Choose a Mortgage Lender

Buying a house is a life-changing decision!

Whether you are moving across the street or across the country, house shopping takes plenty of time and energy. Obviously this is exciting because you are going to get to live somewhere new! 

Maybe you will have more space or a shorter commute or the views you’ve always dreamed of having. Maybe you will be closer to family or friends or in a neighborhood you love. Maybe the new house will help you achieve a dream of being a homeowner. 

However, there is some work that goes into the process. In fact, some people put off buying a home because they dread the ins and outs of house shopping, applying for a mortgage, negotiating with the sellers, packing everything up, moving and finally unpacking. 

There is one thing you can do to make the process run more smoothly: choose a great mortgage lender!

What is the role of a mortgage lender? 

There are several kinds of mortgage lenders, but they all have one thing in common: They are financial institutions that help you finance the major purchase of a home. 

According to Investopedia, “A mortgage lender is a financial institution or mortgage bank that offers and underwrites home loans. Lenders have specific borrowing guidelines to verify your creditworthiness and ability to repay a loan. They set the terms, interest rate, repayment schedule and other key aspects of your mortgage.”

How do you know what kind of mortgage lender to choose?

Great question! There are several things you can do to ensure that you find the right lender for you.

  1. Learn about mortgages before you get one. 

Familiarize yourself with important ideas and definitions before you jump into the process. The more you know before you apply for a mortgage from a lender, the easier it will be for you to compare offers and make a good decision. 

Learn about budgeting for a mortgage, putting together a down payment and boosting your credit score.

  1. Shop around to compare lenders.  

Another strategy that we recommend is to shop around! 

Compare lenders—including banks, online lenders and credit unions. If you don’t compare lenders, you may end up spending more than you need to in terms of the mortgage itself, the interest rate you pay and related fees. 

You shouldn’t be pressured in a way that makes you feel like you have to go with the first lender you talk to. Instead, you should figure out who is offering you the best deal. 

  1. Choose a lender who cares about you and your community.

Sometimes it can be tempting to go with one of the really big national lenders whose name is super recognizable. But many homebuyers have discovered the benefits of working with a local lender. 

These benefits include:

  • A local lender has to earn their reputation in your community. People you know and trust will have experiences with a local lender, which means you can find out what their word-of-mouth reputation is.
  • Local lenders have local expertise! They know the ins and outs of house buying in your town or neighborhood, and they can help you navigate any pitfalls. If you run into an issue with securing your mortgage, they often can recommend local resources to help you solve problems and get the process started again. 
  • Borrowing locally can be a great way to support your community! Your money stays right there in your community, which feels great and benefits you in the long run too!

Are you shopping in the greater Oklahoma City area? 

If so, check us out here at WEOKIE Federal Credit Union!

We offer attentive, professional real estate services for our members. We would love to sit down and talk with you about your mortgage options! Plus, we offer cash rebates when using our partner HomeAdvantage.

Can’t come into one of our branches to talk? That’s OK! Give us a call today at (405) 235-3030 or 1-(800) 678-5363 and we can discuss your options in a phone meeting instead.

We look forward to talking with you about how we can help you reach your dreams of buying a new home. Even if you’re not ready to apply, you can reach out and talk to one of our mortgage professionals today.

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