Lenders may seem to offer identical rate. All may give you the same computation on your monthly fees. But each is unique. And if you fail to distinguish the good ones from fly-by-night companies, it's as if you are giving your home title to the hands of a stranger. No, I don't intend to scare you and definitely not to discourage you to refinance your mortgage, but you have to make sure that once you have made up your mind on pursuing this financial move, you know exactly which lender to go, or at least know the signs of a good lender. The following should serve as your guidelines as you hunt for the right lender: Reputation. Years in the industry is a good indication that a company is delivers their job. But that should not be your only parameter. Make sure that you also read reviews and ask existing and previous clients about their experience with the company. Flexibility. You are putting your house on the line so it is just right to ask for better terms. A sign of a good company is the willingness to create a loan that fits your need. A good lender should be able to lower down their rates or adjust the terms to your requirement. Also, a good lender should be able to discuss with you all the fees involved in the process of buying out your current loan and taking a new one. Availability. Study these scenarios: You dialed the company's toll-free, someone picked up the phone but put you on hold for several minutes. You called several times throughout the day, nobody answered. You dialed again, this time at night and still, no one answered the phone. If you experience any of these situations, then consider it a 'no'. A good lender should be able to attend to their clients any time, especially during office hours. Raise the red flag if you have difficulty contacting a company before you even begin to consider it as your lender. Advice. Bad advice leads to bad credit debt. Make sure that the lender you choose should be the one that answer all your questions regarding the loan. The representative you speak to should give you proper advice on rates, possible movements, and options you should take. Do not think that all lenders will rip you off. Still, it pays to take extra precaution by getting information from the right source. More Tips: While referrals from your friends, co-workers, relatives, and neighbors are a definite help, do not forget to shop around. Go online and search for companies yourself. Options mean higher chance of landing on the perfect lender. Make a short list of possible lenders and call them one by one. By speaking with the company's representative, you will be able to differentiate which ones can answer your needs. Check the Better Business Bureau for information about the companies you have on your list. Also, being turned down by a lender because you have a bad credit is not like being diagnosed with a disease and go look for another doctor for a second opinion. Refinancing your loan with a bad credit may cost you big time on interest and insurance payments so weigh the cost against its benefits. So if turned down, it may be a god thing.
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