Searching for the Best Home Equity Lender

When searching for a home equity lender there are many factors that you will want to consider. You want to find a lender that will present you with the best options and provide you with excellent customer service. Getting a home equity loan is a great way to finance many projects. With the tax deductibility of home equity interest, it makes it one of the most attractive lending options you have. Here are a few things that you need to look for in a home equity lender. 

Reputation

Doing business with a bad company could result in many problems down the road so it is important to find out about the company's reputation. There are a number of tools you can use to find about the reputation of a company. First, ask your friends and family who they use. Most of the time, you can find a good lender in this way. If they do not have a recommendation for you, look at the many review sites online. If a company has a poor customer service record, you should be able to find many postings from customers. Customers that are upset tend to issue voluntary responses.  

Best Rates

Another very important factor to look for is a company with the best interest rates. The rate is something that is going to cost you a substantial amount of money. Even one percentage point can be the difference between paying thousands of dollars over the life of the loan. When you are comparing companies, you need to first look at their interest rates. Most of the time, you can get a quote on the interest rate right away.

This is an easy way to compare home equity lenders quickly. Much of it is based on your credit score, but lenders will vary in the rates that they can offer you. Shop around until you find the best rate for your home equity loan.

Low Closing Costs

Besides the interest rate, you will also want to make sure that you find a lender with low closing costs. The transaction costs of the loan can amount to a large percentage of money on the front end. When you borrow money, the last thing you want is to pay a large amount of money out-of-pocket at the beginning of the process. Sometimes lenders will charge you origination fees, appraisal fees, title search fees and points. 

While you will most likely have to pay something for closing costs, you should not have to pay too much. You need to shop around and compare closing costs among the different lenders. Once you get some estimates, you will be able to negotiate with the lender that you choose. Closing costs are negotiable, so you should be able to get the costs that you want if they are reasonable.

blog comments powered by Disqus