Looking for the Top Mortgage Lender in New York City?
When you’re searching for your first home, you’re also searching for your first mortgage lender.
Now, it’s difficult to make specific recommendations on lenders because it’s way too tough to stay up to date on the many thousands of lenders who work in the New York State Area
However, USDALoanInfoNewYork can give you some very useful tips for how to approach your search for a lender.
When you’re looking for a mortgage lender you want start off by talking to a mortgage broker who has a good reputation in your area.
If you are in the market for a home mortgage, there are plenty of places to find one. You simply need to look on the Internet, turn on your TV, or open up a newspaper to see all kinds of Los Angeles mortgage lenders offering their services. You may even receive a cold call from a bank inquiring about your mortgage needs. There are, however, huge disparities between a decent LA mortgage lender and a great mortgage lender. Let's take a look at a few differentiators that set top lenders apart from the rest.
Are They Being Referred?
One of the best and easiest ways to find a trustworthy and reliable Los Angeles mortgage lender is to ask your friends, family, neighbors, or co-workers which lender they've had a positive experience with. Another good person to ask is a real estate agent, as he or she works in the field and therefore has a good idea of who's good and who's not.
Look At More Than Just Rates
Do not simply choose the Los Angeles mortgage lender offering the lowest interest rate. You also need to find an LA mortgage lender with excellent customer service, otherwise your loan may go unapproved, or you may pay unnecessary fees. Help yourself make the home-buying experience as seamless as possible by researching and selecting an LA mortgage lender offering both quality service and low, low rates.
Experienced LA Lender, Experienced LA Loan Originator
A lender is the bank, credit union, or mortgage company through which you receive your Los Angeles mortgage. A loan originator is the person at the institution who works with you to draw up your mortgage. It is imperative that you not only select a reputable, financially-sound lender, but also an experienced, trustworthy LA loan originator.
Be sure that your loan originator has at least five years experience in the field, fully understands the market, and offers good customer service. Be aware that you may select the best Los Angeles mortgage lender in town, but if your LA loan originator is new on the job, or a disgruntled employee, you may not receive the loan rates and terms you want.
Do They Listen to Your Needs?
Top Los Angeles loan originators know their stuff, but they also take the time to listen to your needs, goals, and limitations. They will offer sound advice on the different Los Angeles mortgage programs to choose from, offer good-faith estimates on closing costs and interest rates (and then lock them in), and provide comprehensive answers to any mortgage questions you may have. Choosing the right option from all the available Los Angeles mortgage programs may seem like a stressful, daunting task, but if you have a patient, trustworthy, and competitive LA lender and loan originator, you'll walk away satisfied.
You should also, at the same time, talk to a regional lender, a credit union (if you belong to one or you can join one) and a small local bank.
Each of these different types of lenders will offer different loan programs at different prices.
You should also ask friends and relatives who they’ve used for their home loans and how the experience went.
But emphasis is on the experience.
I have a great friend who once asked her sister for a lender recommendation, and the sister gave her a name and my friend had this horrific experience.
And when she went back to her sister to see what kind of experience her sister had had with this person, the sister confirmed that she, too, had a horrific experience.
“Hello! Why did you give me that lender’s name?” my friend asked, and the sister said, “Well you weren’t specific that you wanted someone good.
Sounds like a Seinfeld episode, right? And yet, this kind of stuff goes on all the time.
So here are some questions you should ask the person providing the recommendation that will help separate the wheat from the chaff:
- Did the lender repeatedly ask for the same documents?
- Is the lender organized?
A good lender should enable you to close on a home within about forty-five days – unless there’s some real serious problems with the house – so make sure to ask your friends and relatives if their lenders were able to meet that standard.
It may sound obvious, but it’s a good idea to look for a lender who specializes in making residential loans and has a reputation in your area for coming through with these loans.
Banks that aren’t generally known for their mortgage lending can be tougher to work with than some of the really big lenders.
And while you may be thinking to yourself, “I want to avoid the big banks,” you’re probably going to end up with one anyway.
Even if you go with a mortgage broker, that mortgage broker may actually work with a whole bunch of big lenders to fund your loan.
Above all, you need to find a lender that helps you understand the mortgage application process in a way that makes you feel comfortable and secure.
This is a huge decision.
You’re going to finance this property for the long run, and you want to do that with the right kind of partner.
And I just want to give a shoutout to anybody who is closing around October of 2015.
If you are, please watch the videos that I’ve made on the TILA-RESPA changes that are coming your way.
Right now they’re scheduled to go into effect October 3rd of 2015.
If you are looking to close around that, either before or after, you may have to build in some extra time to make sure that you don’t get caught up in all the craziness that’s going to go on I think when TILA-RESPA actually goes into effect.
A mortgage is usually thought of as a home loan, but a mortgage is not a loan. You are not given anything by a lender through a mortgage; instead, a mortgage is a security instrument you give to the lender. The lender's interests in your property are protected through a mortgage document.
A mortgage is executed by two parties - the mortgagor (borrower) and lender (mortgagee). The mortgaged property cannot be sold or transferred to someone else until you pay the debt that releases the lien. The lien is created by the mortgage document and it provides security for the lender on the debt owed by you. Full title to the property stays with you, even though your loan is secured by a mortgage and you do have full ownership rights.
If the debt is not paid, the lender is given the right, through the mortgage, to sell the property to recover the money owed them. A foreclosure sale is the process used to sell property that has fallen into this category and because of the mortgage used for security, this process has to go through the court system. Judicial foreclosure is what this type of foreclosure is called.
A mortgage should not be confused with a deed of trust. Over half the states in the United States use a deed of trust, which acts as a means of security for the lender in much the same way as a mortgage, with a few exceptions. A deed of trust is recorded in public records, which lets everyone know there is a lien on your property. Whereas there are two people involved in a mortgage, a deed of trust involves three parties, the lender (beneficiary), a trustee and trustor (you). The trustee holds temporary title of the property until the lien is paid and released. The trustee is not allowed to take your property and there are laws in place to protect you against them doing so. The trustee has to be a disinterested party and usually attorneys will perform the responsibility of trustee.
If foreclosure becomes necessary, then a mortgage and deed of trust will affect you differently, as the property may be sold by the trustee. This is the trustee's responsibility if the loan becomes delinquent. He will be given proof of the delinquency by the lender and the lender will ask the trustee to start foreclosure proceedings. This type of foreclosure proceeding bypasses the court system and results in a much faster and cheaper way for the lender to foreclose.
You do not have the option of choosing which type of loan security you want, as this is decided according to the state where you live. But, it is essential you understand what type of lien is securing the debt for your property.
When purchasing a home, a mortgage broker provides a borrower with a program best suited for that particular individual. They are professional and can find a lender to meet your needs, even though you may have difficult requirements or special requests. A mortgage broker is regulated by state banking laws. A broker works for you, the consumer, in negotiating and processing loans.
When borrowing for the purchase of a house, the amount of money lent to you by the lender is called the mortgage amount and the amount of your monthly payment is determined by the term or number of years you pay back the borrowed amount. A term of 30 years is the most popular, as spreading out the payments over a longer period of time, reduces your monthly payment. The shorter the term, the higher the monthly payment, so keep in mind there are also 10 year, 15 year and 20 year terms.
Interest rates are on the rise again and this is something else to consider, when purchasing a home.