The most important piece of the home buying process is financing. Figuring out how much you can afford and getting pre-approved are typically the first steps you take before diving into the house search. So, how do you know you are working with the right lender? When making the biggest financial decision of your life, you want to make sure your mortgage is in good hands.

Pretty much any lender can tell you how much you can borrow and at what rate, but for most people, the most important factor is trusted, personalized service. One of the best ways to start the search is to ask friends and family for referrals. Your REALTOR® can also give you recommendations on expert, local mortgage companies they have successfully worked with.

Once you have a few options, contact each of the candidates and “interview” them. Remember, you don’t have to apply for a loan to simply sit down with a lender and ask questions. Talking through the process, either on the phone or face-to-face, can help you figure out the right professional for you.

Once you set up a time to speak with a mortgage expert, FreddieMac suggests you ask the following questions:

• Can the lender explain the different kinds of loans and loan terms that are available in clear and understandable language? Did the customers who recommended the lender find their answers satisfying?  When you talk with the lender, do you understand their explanations?
• Will they give you a single point of contact to reach for help or support anytime during the process?
• Will the lender provide regular updates telling you where your application stands at any given time?
• Will they demand paper documents – like two years’ worth of tax returns, or recent pay stubs – or will they accept them electronically once you sign the proper release forms?
• Will they take the time to let you know they received the information you sent? Will they tell you when it was received by the proper third party?

Before making a final decision, you can also check with your local Better Business Bureau and the Consumer Financial Protection Bureau to see if there are any consumer complaints against the companies you have selected. You can also verify a lender’s standing with the local Chamber of Commerce, and check online review sites for company reviews.

Also, beware of getting sucked into online deals. With so much today being done on the internet, it is easy to get tempted by fancy advertisements for low interest rates and lower closing costs. Daily life and the concern over face-to-face meeting can also make online mortgage shopping seem a lot easier. However, there are many uncertainties with an online lender, so make sure you do your due diligence. Many local REALTORS® suggest using a recognizable local lender who can provide you with personalized, trusted service. Many agents also say that when you are ready to submit an offer, having a recognizable local lender can sometimes give you an advantage.

If you are thinking of buying your first home and want more information, visit the Greater Lansing Association of REALTOR®’s website at www.lansing-realestate.com to find a listing of area real estate agents and mortgage professionals.