As the Summer rolls in and beach fever kicks in, many start thinking about buying a beachfront house. When you find the beachfront house you want to buy, you’ll probably need a mortgage. Many are starting to search for a mortgage lender on the internet. But what do you look for and how do you go about choosing a reputable mortgage lender for your beachfront property?
Call your neighbors, friends, and family
If you already live in the area you are purchasing the beachfront house in, some of the people you know in the area may have used a mortgage lender online when they financed their house. Ask around among close friends and acquaintances to see if anyone can make a personal recommendation. Check with co-workers, family members and neighbors, too. A referral like this is often a good way to hear about the good and bad experiences people have had with various online mortgage lenders.
Look out for predators
Brokers and mortgage lenders who take advantage of clients may be using “Predatory lending” practices. Lenders and brokers who charge excessively high fees, pressure borrowers into a loan that isn’t suitable for them, or use misrepresentation and lies to gain clients may be employing predatory lending practices to gain business. Always review the loans “good faith estimate” and review all the contract numbers, especially the rate of interest, origination fees, points, and so forth. If the fees seem too high or are not to your satisfaction, you might want to search for a new lender or broker.
Check with state offices
All mortgage lenders and brokers should be licensed with the state in which the beachfront house is located. To help ensure your mortgage lender or broker is legitimate and reputable, ask to view a copy of their license or check online with the States website. Avoid any lending company that is not licensed or has allowed its license to expire. The beachfront house you are looking to buy may or may not be located in the state you live in. Be sure if you are using a lender in another state that you verify their credentials.
You can also call the Better Business Bureau office to gather information on your lender. If they have any complaints against the lender on file, you will be able to review the complaint and if the issues have been resolved.
Hubert Miles is the founder of Waterfront Houses USA, an internet marketing service that provides Beachfront Houses and Beachfront Property For Sale available in the US and Canada.
