While it may seem like mortgage companies are a dime a dozen, the truth is that there are less firms out there than you might think. While it’s true that the number of Colorado mortgage companies has grown over the last decade, it may be more challenging to find a quality lender than you initially thought.
When looking for the best quality Colorado mortgage company you have several options to choose from including smaller, mom-and-pop outfits to the larger, national chains. Here are The 5 Tips to Find a Denver Mortgage Company Today.
But because each mortgage provider holds a different approach when servicing their clients choosing the right mortgage company that fits your particular needs can often be a difficult decision to make.
Luckily, searching for that perfect lending partner can be a bit easier with a little bit of preparation and due diligence. Whether you are looking to buy a new home or refinance an existing mortgage, here are a few ways to find the best Colorado mortgage company for you.
Get the Lay of the Land
Understanding the current lending landscape can save you both time and money when you are trying to decide with which Colorado mortgage company to go with.
Mortgage companies take all sorts of forms. The most common are your traditional banks and credit unions. Credit unions are member-owned institutions while banks are owned by investors, operating for profit.
Additionally, there are savings and loan institutions, albeit less common nowadays, which are smaller, community-driven, as well as mutual savings banks.
But the most common local mortgage companies are often correspondent lenders. These businesses maintain a steady pipeline of loans which they then sell to other large lenders such as Chase or Wells Fargo.
There are pros and cons to work with each of these types of mortgage companies. One of the benefits to working with banks and credit unions is they might be able to offer lower fees because their process doesn’t involve a middle-man.
On the other hand, correspondent lenders are nice because they often offer a much larger variety of mortgage solutions to choose from because they work with a multitude of investors.
Read the Fine Print
Most mortgage companies hook you by offering the lowest rate possible. But the lowest rate doesn’t always translate to the best deal. When you start to narrow the pool of Colorado mortgage companies you are considering working with, make sure you start to consider other pricing factors.
For example, is the mortgage company actually waiving certain fees or are they rolling them into your loan balance or interest rate? Do you have to pay any commission, application, or origination fees? How about points?
One way to help you compare pricing a bit better is to focus on comparing the annual percentage rate (APR) vs the proposed interest rate each mortgage company quotes you.
The APR is the annual cost for the given loan and factors in fees such as mortgage insurance, closing costs, origination costs, etc. as part of the cost.
Reviews Are Great, But Communication is Key
You may be tempted to simply go with a large lender because everyone does and they are known for their low rates. They may also have great reviews on multiple websites. But rather than focus solely on someone else’s opinion of the company, check them out for yourself.
One of your biggest deciding factors should be finding out how communicative your mortgage company will be. Start by interviewing the loan officer or broker. Give them a call or schedule an appointment and ask as many questions as you can.
You don’t need to quiz them but you want to feel comfortable with your representative knowledge and expertise. It’s also important they can communicate clearly and in a manner that you can understand.
If your lender or broker can’t answer (or doesn’t provide the right answers), don’t get discouraged. Simply move on to a better quality Colorado mortgage company that deserves and wants to earn your business.