First and foremost, buying a home and obtaining a mortgage is a significant financial decision, often involving substantial sums of money and long-term commitments. Whether it’s a mortgage company, credit union, bank, or somewhere else you can obtain financing for a mortgage, finding the right lender can be a challenge. We believe that every lender you talk to should answer these 4 “p”s of lending – product, pricing, process, and people – allowing you to evaluate them and make the best choice for you and your family before you make the leap.
Evaluate Lenders With the 4 “P”s of Lending
Before you start researching, it may seem like the product is complicated, but it actually can be pretty simple, as there really aren’t as many loan options as it may initially seem. What do the lenders you are in communication with have to offer? Generally, the type of loan you need can be narrowed down to a couple choices, and remember, just because you qualify for a loan doesn’t necessarily mean it’s the best fit for you.
We see that oftentimes, consumers call solely with questions about pricing. Is the lender in-line with their competition? What kind of interest rates, closing costs, and associated fees can I expect with the company? Keep in mind that lenders need to compete to be fair – if rates and closing costs are too high, no one will want to work with them. Additionally, some lenders may have a higher interest rate or closing cost than others, but a better process, product, and people could make up the difference.
This “p” is all about how easy it is to go from start to finish in the loan process. Just like everything in life, some companies are easier to work with than others. Consider a lender who can complete your loan process with as few hurdles as possible while keeping in mind that the right process for you isn’t always the quickest.
Who are you working with? A 1-800 number or an experienced human being who takes the time to know you and cares about your situation? The right lender will prioritize communication, answer your questions, and help you understand the implications of various loan options. It’s important to work with someone who cares about your financial well-being, as they will ensure a smoother, more personalized experience while fostering a supportive environment as you embark on your homeownership journey.
So as you find the perfect lender for you, keep the 4 “p”s in mind and remember to look at the whole picture. You’re probably never going to see a lender hit all four of the “p”s perfectly, but the closer an institution can get to 100%, the better. Prioritizing the best product, price, process, and people can help you navigate the lending process with confidence and ensure you make the right decisions to secure a mortgage that meets your needs and goals.