Posted by: Larry Stevens | March 6, 2012

First Mortgage Lenders: Knight in Shining Armor or Predator?

The headlines in the media often take a stance against the banks who loan money for mortgages. While there have certainly been some bad apples, we shouldn’t allow that to spoil the whole bushel. In fact, many of the lenders still around today take a major interest in getting qualified borrowers into homes they can afford. First mortgage lenders want to see home buyers succeed. Lenders (good lenders) don’t want foreclosures crowding the housing market. So, how do you know you’re working with a good lender who wants you to do well?

One factor is education. Does your lender offer free eBooks covering everything from first time home buyers to home improvement loans? Can you get daily information on the mortgage world and options available to you as a home buyer? Education and free information is vital when it comes to making the right decisions. The more you know, the more protected you generally are. A business that keeps you in the dark isn’t one that’s likely looking out for your best interest.

Another factor to finding the right first mortgage lender is to consider the lender’s involvement in the community. A lender with no ties to its own neighboring communities has no vested interest in seeing its neighbors succeed. A lender with decades of roots in a community that gets involved in local events shows that it cares about the local scene.

Finally, a track record of successful business should be readily available. For instance, high attendance at an industry event and compliments on the program are helpful. An education day for real estate agents on the home improvement loan option “FHA 203k” is solid proof that a first mortgage lender is well respected in the industry. An award from a local Board of Realtors can prove that the lender is respected.

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