How to Look for a New Jersey Mortgage Company
There are a lot of financial institutions and lenders out there, who would be happy to provide people with mortgages. This sheer quantity can be good, in the sense that it could foster competition among participants, thereby driving down rates and charges. But it can also be a problem because the quality of services provided can have a very wide range from very good to very bad. And it can be hard to figure out which company or lender is which. Now, this is a decision that should not be taken lightly because of the long-term financial implications of a mortgage. You want to make sure that you’re dealing with a company and people who are forthright, reliable and possess some measure of integrity. It can be difficult to find the one, but there are a number of points to keep in mind.
First of all, it’s important to remember that the various laws and regulations, which apply to mortgage lenders can vary from state to state. Just because something is true or required in New Jersey doesn’t mean that the same thing will apply in Alaska. So, one of the first things to do is make sure that you’re dealing with a mortgage companies in NJ that actually operates and runs its business from within your state. Try to avoid lenders who are based in some other state because their personnel may have inaccurate or inapplicable knowledge of the law and regulations. Ask questions while dealing with the representative, until you’re satisfied that this person actually knows New Jersey law and that you’re being quoted numbers, figures and provisions that actually follow what that law requires.
Second, keep in mind that reputation counts for a lot. One of the things that many people don’t realize is that in many lending companies, the employees get promoted not because of their financial knowledge, good rapport with customers or track record of reliability. Instead, they tend to get promoted because they are able to sell more products than other employees. It’s this simple contribution to the company’s bottom line that determines whether someone moves up from Junior Loan Officer or Analyst to a more senior position. So you need to keep in mind that talking with someone who has seniority doesn’t automatically mean that the person is more competent or more caring. Instead, the person may simply be better at talking people into buying products.
To get a better gauge for the reputation of a company or its staff, you need to go right to the source, which are other people who have dealt with that company before. Start with the people that you trust the most. Find out if any of the people close to you, such as your good friends or trusted family members have also taken out a mortgage in your state recently. Ask them who they dealt with and what the experience was like. Find out if there were any issues that cropped up, or any headaches that they went through so that you can watch out for these kinds of problems in the lenders that you will deal with later.
The idea here is that if someone you know and trust had a good experience with a particular New Jersey mortgage company, and if their numbers and circumstances tend to align with your own, then that particular lender is already a good place to start. In fact, you should find out who the exact person is that your friend or relative dealt with and look for that specific individual. Introduce yourself and advise the lending officer that you were referred to him or her. Let the officer know that you are there because you heard good things, and you are expecting a similar quality of service.
From there, you can also branch out to your wider network, and ask around from people who tend to deal with mortgage lenders on a regular basis. These include lawyers, accountants, and business owners. Since they have a lot of encounters with these types of lenders, they may be in a good position to talk about some of the options, which companies appear to be at the top, and which ones should be avoided at all costs. Moving even further out, it may also be useful to check the reviews posted by people online. Keep in mind though that these kinds of reviews can be gamed, so if a testimonial sounds too good to be true, it may very well be fake.
Your next step will be to check those offices and agencies that receive complaints against mortgage lenders. In fact, the Better Business Bureau or BBB has stated in the past that mortgage lenders as a whole receive a large number of complaints compared to companies in other industries. So this already makes clear that there are a lot of unscrupulous or fly by night lenders out there. The BBB should be able to provide you with information on the lenders that need to be avoided, and much of this information can be accessed online. It can also be worthwhile to check with the Department of Housing and Urban Development or HUD, for other complaints against lenders.
Finally, the basic guidelines for mortgage searches apply. Be sure to talk with multiple companies and lenders. Even if the first lender you speak with seems amazing, be sure to talk to several more and do more research online as well. Even if you do end up going with the first lender you spoke with, this knowledge of what other companies are offering could help you negotiate for an even better deal with your chosen lender. Be sure to ask questions whenever something seems vague or unclear. If the answer that you are given does not adequately answer your question, or if it leaves you with even more questions to ask, be sure to go ahead and continue asking. This is the kind of decision that you want to go into with as few doubts and unanswered questions as possible. It may be much harder to ask your questions after the contract has already been signed, so get all of this done and out of the way before you have committed yourself.