How to select the right mortgage lender?

Enter mortgage into any search engine and you will find scores of sites offering you mortgage. On the other hand, enter any bank or financial institution and say that you want a mortgage then you will most likely be hurried into some private office for a meeting with the mortgage advisor or be showered with several leaflets.

However, the point is not finding somebody who will give you a mortgage but it is about finding the right one. Mortgages mean big business. Hence, every financial institution has several different loans for buying any property on offer.  Therefore, you need to shop around before deciding, check out a number of lenders and then make your decision. Comparing can save you quite some money.

The best place to start with is your bank. If you have been with the same bank for quite a while besides having a good record financially then they will be much more confident to loan you more amount of money as mortgage.

The competition amidst lenders is quite fierce these days with the interest rates dropping. Therefore, it is possible that you might find a better deal somewhere else also. Hence, you do not have to feel compelled to use your bank to get your mortgage.

You can make things easier for yourself by using several websites online that help you out with several comparative tables of mortgage offers. Simply type ‘mortgage’ in the search box and you will see several results. One such site is moneysupermarket.com/mortgages. It is good for comparing.

Then there are several comparison sites online. You can use any of them to your benefit. Another good place to look is the finance section of your newspaper. They carry many advertisements besides any news on the recent offers. However, do not get lured by any adverts that simply promise lower rates while not revealing any other information.

Mortgage is not all about rates. Most often, banks advertise displaying the lowest rate that they offer. However, before you can avail that rate you will have to pass several qualifying criteria. Besides that, you should look out for any hidden charges, or clauses.

Always remember to read the fine print, the terms and conditions before you sign up for any deal. People usually get scammed because they do not pay enough attention. Therefore, be careful when you decide.

Then some of the borrowers can also consider ethical investment. For example, Muslim banks are not allowed to charge or pay interest.

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