Effective Ways To Compare Mortgage Companies Online

Profit from these 8 valuable steps to finding the best mortgage lender. Learn why searching for a mortgage company has changed and effective ways for protecting your credit from too many searches.

Friends ask me all the time how to find a mortgage lender or broker. It comes with the territory. As a former bank loan officer and owner of my own mortgage company, I have an insider's perspective regarding the mortgage lending business. So I know what I would look for in a mortgage company and try to pass that on to people.

Here are a few simple yet effective principles that I encourage my friends to use.

First, look for a mortgage lender with a stellar reputation. Question neighbors, relatives and your buddies. Ask who they've used and if they'd return for their next mortgage. When you hear the same company name repeating in your discussions, pay attention.

Second, listen for individuals. Is any certain mortgage broker frequently spoken of? Companies may have several mortgage originators. It is important to have as much confidence in your home loan representative as you do their company.

Third, compile your list of 3 to 5 recommended mortgage companies and trusted loan officers.

Fourth, take action. Make contact using a short summary about what you are trying to accomplish. It is better if you write out your purpose ahead of time so you won't feel flustered or forget important ideas. It also helps clarify in your own mind what matters the most to you.

In one sentence be able to describe your purpose. Are you purchasing a home and need pre approval? Do you need cash to update your kitchen or replace the roof? Is your adjustable rate mortgage payment due to increase soon? Do you want a 30 year fixed rate mortgage with stable payments?

Whatever your reasons to seek financing, be straight forward and to the point with the mortgage representative.

Fifth, after describing your goals, it's time to allow the mortgage broker to speak. She may ask you more questions. This is a good sign. It means she's being thoughtful and creative.

Sixth, ask what she would recommend for your particular situation, based on her knowledge and experience. Important! Take notes.

Seventh, check your response. How did speaking with the loan officer make you feel? Your reaction can make a huge difference regarding the mortgage loan experience. Don't forget that your intuition counts.

Eighth, rate each of the mortgage lenders you added to your list. By paying attention to their responses, rank them based on whether they sounded knowledgeable and if you liked them.

There is one more important element to finding your best mortgage lender, the internet. More and more lenders are attempting to shift the mortgage application process online. Although I prefer direct contact with my mortgage broker, I think it's an accepted fact that mortgage lending is moving to the internet.

Even though online mortgage lending may exceed your current comfort level at first glance, it actually expands opportunities. Reducing expenses to lenders results in lower closing costs to borrowers.

So take advantage of the search function of your online service provider and your preferred search engine such as Google, Yahoo, Windows Live, Ask.

Type in your search words. Try "mortgage rates", "mortgage lenders", "compare mortgage rates", or simply your purpose such as "refinance". Then sit back and allow the search engines to do the work.

Here is another little idea that may help you find lenders closer to home. Type in the name of your city after your search word.

Then follow a similar process that I outlined above except instead of talking to a loan officer, search through each website.

If you decide you want more information from a specific lender, you will probably have to fill out a brief online application. That is OK but be cautious. Before entering your social security number, ask yourself first if this is a lender you're truly interested in.

There are two reasons for this. One is for security purposes. The other is to protect your credit score.

Warning! Ordering your credit history usually follows releasing your social security number to home loan financial companies. It seems reasonable to provide a lender with your social security number and once your final determination for a mortgage lender has been made, it will be necessary to give your social security number to proceed.

But here are the facts. Credit inquiries from a mortgage lender can lower credit scores, creating a detrimental affect on the amount of money you're qualified to borrow. So be safe and be smart. Wait until you've chosen a lender before providing your social security number.

By the way, before you apply for a mortgage, did you know you can use a credit monitoring service to check for any errors in your credit history.

Use these simple ideas when searching for a lender. Follow my 8 easy steps. Take advantage of the internet to search online. Guard personal information and your credit scores. You will greatly improve your chances of finding the lender that is best for you.

Best of luck searching for a mortgage lender.

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