Dollars & Sense

6 Pitfalls to Avoid When Looking for the Best Mortgage Lenders

Written by Peach State Federal Credit Union | Jan 28, 2021 5:26:00 PM

If you are thinking about buying a new home, then this is an exciting time; however, buying a home is also a big decision. This is why you need to take the time to get this decision right. That also means working with the right mortgage lender. Unfortunately, there are a lot of common mistakes that homebuyers may make when looking for a lender. Understand these common pitfalls so you know what to avoid.


1. Selecting a Mortgage Lender from the Internet


There are numerous websites that advertise loans online. They even advertise how easy it is to find and close a mortgage. They likely include a litany of positive reviews. At the same time, these online mortgage lenders won’t necessarily have someone available if something goes wrong during the process, making it hard to get in touch with someone. There is nothing wrong with looking for a mortgage online; however, it is definitely a good idea to find someone locally who knows your area, has your interests at heart, and will walk you through your homebuying process to ensure nothing goes wrong. This is why it’s better to work with a local lender like your credit union.


2. Working with a Large Mortgage Brokerage Firm


There’s nothing wrong with getting help finding the right lender; however, asking a mortgage broker for help is probably not the way to go. You may get lucky and get paired with the right person. Keep in mind though that the mortgage broker doesn’t have any authority over the person who is actually giving you your mortgage. As a result, if something goes wrong with the transaction, then the broker may say that there is nothing they can do. A local lender like your credit union is not going to do that. This is because at a credit union, like Peach State, every member of the credit union is an equal owner, not just a customer.

 

3. Working with an Inexperienced Loan Officer


Another common mistake that potential homebuyers make is that they work with a loan officer who isn’t familiar with mortgages. An inexperienced loan officer may not be familiar with the local real estate market or know the guidelines of the company regarding mortgage lending. An inexperienced loan officer is more likely to have trouble navigating common roadblocks involved with applying for a mortgage.

At Peach State, the team in our Mortgage Services Department is knowledgeable, friendly, and caring. We want to help you achieve the dream of homeownership. Our straightforward application process and lack of hidden fees make it easy for you to move forward to this next stage of life.


4. Relying on a Corporate Firm


While there is nothing wrong with shopping around and looking at what bigger banks have to offer, they may not know the intricacies of your market. Real estate is a local business and markets vary widely from place to place. A large corporation is not necessarily going to be able to provide you with the insight you need to make a good decision when you are looking for a new home. For this reason, it is a good idea to rely on an experienced, local lender.

 

5. Starting the Process Late


It’s important to start the process of finding a lender as early as possible. If you can get pre-approved for a mortgage, this may help you be more competitive when you’re ready to make an offer on a home. Your credit union can guide you through this process every step of the way, putting you one step closer to your dream home.


6. Focusing Solely on the Interest Rate


Yes, the interest rate on your potential mortgage is important; however, this is not the only factor to consider when looking for a loan. It’s important to also focus on the right house for your needs. Take the time to work with a local realtor who can help you find the right one to fit the needs of you and your family.


Take Your Time When Looking for the Best Mortgage Lenders


Buying a house is a big, long-term decision and you should take the time to find a mortgage that fits your personal needs. Look to your credit union’s Mortgage Services Department for more information about the process and to find out how you can get your , so you can start your search for the perfect home.

Finding the best mortgage lenders is one of many aspects of buying a home. For a more complete guide, download our "How Much House Can I Afford in Georgia or South Carolina?" guide.