How to Find a Lender
Today, lenders can be found through a variety of sources. In addition to asking friends, you can also find and apply to lenders over the internet and through referrals from your REALTOR. We would be happy to suggest lenders we have used successfully who have proven themselves competitive and capable even with problem properties or poor credit.
Choosing the Right Lender
Interview several lenders to evaluate the following:
- Ability to explain things clearly and return your phone calls in a reasonable period
- Competitiveness of interest rates, costs & fees
- Availability of loan programs that suit your credit profile and desired a property
Choosing the Right Kind of Loan
Today there are so many types of loans on the market that it is beyond the scope of this page to list or explain them all. Your lender is the best person to help you select a loan program to suit your needs. Below is a summary of the three most popular loan types in practice.
- Fixed loan: The fixed rate loan assures your monthly payments will remain the same. The length is typically between 15 and 30 years. Fixed-rate loans may be best if you intend to keep the loan for seven or more years.
- ARMs (adjustable rate mortgages): ARMs may be suitable if you plan to sell or refinance your home within the next few years. The starting interest rate is typically lower than a fixed-rate loan, saving you money initially; it is essential to understand the index, the readjustment interval, the margin, and the downside risks of an ARM before making a final decision to use this type of loan.
- Intermediate ARMs: Also called Hybrid Loans, these loans can offer fixed interest rates for the first 3, 5, 7, or 10 years after which the interest rate adjusts with the market every six months or year after that.
