Most people tend to think the interest rate is one of the most important reasons to choose a lender. It’s vital to know as a consumer, there isn’t a huge spread in rates between one lender and the next. You should be looking at different criteria for choosing a lender to purchase or refinance a home.
It might be a good idea at this point to talk about some terminology. A mortgage lender, like us, is a financial institution that loans money directly to the borrower, which would be you. Mortgage brokers (banks) do not loan the money directly; they act as the middleman between you and the lender, which could result in higher or unnecessary fees to you, the borrower. You may ask yourself, “Am I better off going to a big bank or finding an independent, local lender?”
Here is what you should keep in mind when looking for a mortgage:
Getting a mortgage today involves more moving parts than it did previously. It is significant to have a loan officer to guide your application through the process. It doesn’t matter whether your loan officer is a banker or lender; what matters is having a point of contact to answer questions and keep you up to date. Something to keep in mind, banks do have closing times and the employees usually do not work after hours. Tabor Mortgage Group being a lender, our loan officers are available to answer questions past hours and on weekends to help move the process along.
A great loan officer will be your trusted advisor throughout the home financing process. They should be able to let you know if there are ways to improve your credit score to potentially get better pricing on your loan. For example, raising a credit score from 735 to 740 could save $1,000 on a $400,000 loan.
A loan officer should have a good feel for the performance of the market. Mortgage rates change daily, this is based on the price of a bond called Mortgage Backed Security (MBS). MBS changes according to market activity and directly affects the rates for mortgages. You’re far better off dealing with a lender who understands this concept.
To answer your question—FINALLY—your interests are best served by finding a lender whom you can trust as a resource and trusted advisor. We only have the best loan officers here at Tabor Mortgage Group, which is why the Lowcountry voted us Charleston’s Choice, Best Mortgage Company, in both 2018 and 2019. We listen to our clients’ needs and ideas to anticipate their home financing goals. We’re mortgage educators applying our years of experience to provide detailed information and sound advice on mortgage options and industry trends, helping you get the home of your dreams!!