Are you ready to look for a home Do you want a mortgage company you can depend on to keep your mortgage and not sell it after you sign the paper If the answer is yes, you need to find a company that has a good reputation for working with borrowers to make sure they receive the best interest rates and a timely closing. Once you lock into a interest rate, you will receive that rate at the time of closing. If the company does not offer this service, find someone that does.
If the time between finding a home and the closing takes longer than expected, you want to make sure you receive the interest rate that is the lowest. If the interest rates start climbing before the closing, you need protection from the higher interest rates. The way to achieve this is by locking in on the interest rate the day you fill out the application. Some mortgage companies may not offer the lock in option. This can cause problems if the interest starts to climb.
There are many reasons for using a mortgage company instead of a bank. Mortgage companies work with other organizations such as Fannie Mae and Freddy Mac. Banks tend to work along. If you need some leave way, you will probably have more luck and results from a mortgage company.
One thing to remember when looking for a lender is that some banks do not offer in house loans. If you want a bank loan, you have to make sure they will hold the loan and not a mortgage company. A bank officer can work with you to find a loan, but not all banks keep the loans, they are working for a mortgage company. If this is important to you, you need to find this out before starting the process.