Deciding on a lender is a very significant part of the process of re-financing a
home. Understanding the different re-financing options and knowing how each of
these options work is very important but none of this matters at all if the
homeowner is unable to find a lender who is willing to offer them the rates and
terms they are seeking. Choosing a lender can be a long and difficult process
but there are some ways to make it easier. One simple way to make it easier is
to ask for advice from friends or family members who recently re-financed.
Additionally, homeowners can do their own research to determine which lenders
are able to offer them the best rate. Finally the homeowner should determine
whether or not the finances should be the governing factor in choosing a lender.
Surprisingly enough, in most cases it is not.
Ask for Advice from Friends and Family Members
Friends and family members who just refinanced can be a homeowner�s most
important resource in the process of selecting a lender. These friends and
family members are so valuable because they will most likely be willing to offer
you a quite candid opinion of the lender they used. This opinion may be either
positive or negative but in either case it is useful to the homeowner. If the
opinion is negative the homeowner can remove this lender from their list of
lenders to consider. Conversely if the lender comes highly recommended, the
homeowner may consider this lender more carefully.
Comparison Shop
Homeowners who want to know which lender is proposing them with the best
interest rate and financial terms should do a large amount of comparison
shopping. The homeowner may even consider requesting quotes from each and every
lender. This should make it perfectly clear which lenders are willing to offer
the homeowner more favorable rates. When comparing these quotes all of the
factors should be considered to ensure the quotes are being compared fairly. For
example each quote should be broken down to determine the monthly savings, total
savings, etc. All of this statistical data will make it much easier for the
homeowner to make a wise decision when the time comes.
Consider More than Finances
Lastly, while interest rates, loan terms and other financial matters are all
undoubtedly important none of these are more important than being treated
comparatively by the lender. For this reason, the homeowner should carefully
consider all of their lenders and should determine whether or not they feel as
though the lender is responsive to his needs. For example, a lender who does not
return calls in a timely fashion or answer questions truthfully and accurately
may not be the ideal lender for a homeowner even if he is the lender who is
offering the most favorable rates.
Additionally, homeowners should trust their instincts regarding their trust in
the lender. Some lenders just do not appear to know what they are talking about.
Homeowners might be inclined to avoid these individuals because they may end up
doing more harm than good during the re-financing process. Conversely some
homeowners may be immediately impressed by the honesty and intelligence of
another lender. In most cases, the homeowner would likely choose the second
lender as long as the rates offered by each lender were comparable.
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