Do This Before Choosing a Mortgage Lender in Denver

Do This Before Choosing a Mortgage Lender in Denver
Do This Before Choosing a Mortgage Lender in Denver

Choosing the Best Mortgage Lenders in Denver may not be so easy. This guide will help you make the process easy for you!

Whether you are buying your first home or simply looking to acquire a second, there is a good chance that you will probably need the help of a mortgage lender. But not all mortgage lenders are the same. Are You Looking for Mortgage Lenders in Denver? Follow these steps.

Each can offer its own mix of mortgage solutions and can provide varying degrees of customer service. But the bottom line is you want to find a lender you can trust and are comfortable working with since the majority of mortgages can take upwards of 30 years to pay off.

Recently the NMLS noted that at the end of 2019 there were roughly 1,811 mortgage companies headquartered in Colorado1. The Denver area in particular is an especially saturated market, with a multitude of mortgage lenders available making it difficult to figure out the right partner to pair with.

While friends and relatives may all think the lender in their pocket is their best-kept secret, the truth is that spending some time to research, compare, and ask questions is essential in deciding who you feel would be the best lender to work with.

If you are on the hunt to find the best mortgage lender in Denver, consider these three things before you apply.

1. Make Sure You Do Your Homework

Let’s face it, a lot of work goes into making a large financial decision. For example, you wouldn’t buy a car without researching the different models and features or even taking it on a test drive.

The same should hold true when figuring out which mortgage lender you want to work with because ultimately it is a decision that will have an impact on your finances.

Start by completing some preliminary online research. Check out what lenders are in your area and what their reputation is. Don’t be afraid to scrutinize client reviews and testimonials. Even take it one step further by checking out any lender’s rating on the Better Business Bureau.

You will find that there are a lot of different lenders to choose from including:

  • Banks
  • Credit Unions
  • Brokers

Make sure to consider the differences as well as the advantages and disadvantages of each type.

2. It’s Always Important to Compare Rates

After you have some knowledge under your belt and have narrowed down the list of potential mortgage lenders Denver has to offer, the next step is to shop around for the best deal.

It may be tempting to go with the first quote you get, or even the one with the lowest rate, but keep in mind that unless you formally submit an application and lock your rate, it can be subject to changes.

There are also additional factors to consider other than just the interest rate. For example, it’s important to review the fees and closing costs associated with applying with a particular lender. Be careful! Some lenders try to charge higher origination fees to offset lower rates.

One of the best tools available to help you find the best mortgage lender is to apply and compare respective quotes. A lender is required to provide you a Loan Estimate (LE) within three business days of receiving your application which can be used to compare the interest rate, closing costs, and proposed monthly payment between lenders.

3. Don’t Be Afraid to Ask Questions

The mortgage application process can be complicated and nerve-racking to some. Ultimately, you want to work with a lender you can trust and that you can use as a resource to answer any questions you might have regarding the application process.

Before you apply, ask and prepare questions to feel comfortable with the transaction. Make sure they are responsive and can accommodate drop-in appointments or virtual meetings.

If the mortgage lender cannot answer any of your initial questions or doesn’t seem to respond to your inquiry in a timely manner, they may not be a lender you want to work with. Instead, consider another one of the many qualified mortgage lenders in the Denver area.

We hope that this brief guide will help you to choose the best Mortgage Lenders in Denver!


Sources:

  1. NMLS. (2020, March 18). NMLS Mortgage Industry Report 2019Q4 Update (Rep.). Retrieved November 24, 2020, from NMLS.

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