Porcupine Real Estate Blog
Choosing a Lender
One of the most frequent questions we receive is, "What lender should I use?" Having been in the real estate industry for over nearly 20 years, we've worked with many excellent lenders, and plenty of not-so-great ones, as well. The following are the most important qualities when selecting your lender.
- Does your lender have great communication? - Real estate transactions have many moving parts, and it is imperative that each clearly communicate with the others. You'll want a lender who reviews the entire loan process with you, and who will alert you to any potential issues that might arise. Meeting face-to-face, and having the ability to have someone local who knows the market and can explain each loan product and the various loan scenarios is a necessity.
- Is the lender local? Many times, local lenders will be more available by phone or in-person than lenders from larger national chains. We recommend using a lender who provides his or her cell phone so that you may reach him easily, and who is available to meet with you in person (in NH) to discuss the best loan type for your situation.
- Is there more than one contact throughout the lending process? Most lenders have the loan originator/loan officer to take the application and explain the programs, along with a processor who works on the file through closing. Often, with larger companies, there are two, three, or even four people who will be working on the file.
- Is the loan sold after funding? Personally, I don’t think this is a big issue, but some people do ask about it. Every lending institution uses the same set of basic approval guidelines set forth by the government (Freddie Mac or Fannie Mae for conventional loans, HUD for FHA & rural development loans, and the VA for VA loans). If a lending institution sells directly to these institutions, then borrowers need only meet the basic approval guidelines. If the loans are sold or serviced through another institution, then there may be additional approval requirements the buyer must meet.
If you'd like our list of preferred lenders, please contact us today.