Working with Mortgage Lenders in New Jersey

What to expect from NJ mortgage companies

Your expectations when working with mortgage lenders in New Jersey depend on the type of lender. A lender that works directly for a lending institution will provide all of the options that particular lender allows and that you qualify for. Other lenders actually work as brokers that shop your loan to a variety of lending institutions.

Brokers that provide mortgages in New Jersey can provide access to more lenders but may not share your best interests. Brokers usually receive a commission from the lender and will tend to push mortgages that offer the greatest profit for them.

There are three points you should discuss with mortgage lenders in NJ when considering which one to use:

1. Interest rate on the loan. Rates change quickly in the volatile housing market and your credit rating will also affect the rate you can expect from NJ mortgage brokers.

2. Points on the loan. Prepaid mortgage interest points will lower your interest rate but other types of points may not benefit you at all.

3. Closing costs. Lenders charge fees for various services and you will want to know what they are as soon as possible.

Get loan offers through New Jersey mortgage companies

Talk with several of the broker's recent clients before getting a loan through that broker. Find out if the broker was able to meet all of their expectations.

Obtain a referral for mortgage companies in NJ from a real estate agent

Real estate agents usually send a substantial amount of business to their preferred lenders. A smart mortgage lender will take good care of these referrals.

Solicit quotes directly from mortgage companies in New Jersey

If you have already bought a house, you may want to speak to mortgage lenders. NJ lenders should be familiar with specific factors that affect the housing market in your area.

• New Jersey mortgage lenders may sell your loan to another company. Don't be surprised if you receive a notice from both the old and new lending company advising you of the change and providing instructions for making your payments to the new lending company. The right to service your loan also includes managing your escrows for insurance and property taxes.

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