How to find a Michigan mortgage company
Whether buying or refinancing, selecting a reputable lender can be both challenging and costly if you don't know what to look and ask for. For many, the initial impulse is to select lenders based solely on the best interest rates, and while significant, other considerations may be more relevant, given your financial portfolio and local market conditions. It's important to find a mortgage provider you can trust — one with a strong reputation, documented experience, credible references and the ability to adapt loan products to fit your individual needs. In short, you want a lender who can handle all aspects of credit and property acquisition strategies.
And, unless refinancing, you are probably one of the 80+% of today's buyers who start their search online, with many now recognizing a mortgage pre-approval as the first step to home ownership. So, whether you have a lender, know of a lender or need a lender, take it to the NET! With the ever-growing popularity of the Internet, lenders are no longer geographically turf sensitive, other than having to be licensed in the states where they originate loans. Beyond that, loans can now be originated online and closed at local title and real estate companies. It goes without saying, though, that the Internet has created a "global playground" in which ethical reciprocity (the "Golden Rule") is not the norm. So, if it's too good to be true, it probably is and proceed with caution. So, whether you have a glimmering of your credit worthiness or not, the Internet is a great starting point for researching the various types of mortgage companies, mortgage products and interest rates available. As you try to narrow the field of lender prospects, you may want to verify, early on, whether a mortgage broker or mortgage banker is licensed to originate loans in the state of Michigan by visiting the state of Michigan's Mortgage Licensees Locator.
Prior to initiating any direct dialogue with a lender, whether online or not, it's important that you understand the unwritten rules of the "mortgage playground" prior to engaging a lender. Unlike the real estate community, the mortgage industry is not bound to a trade association code of ethics and standards of practice when dealing with the general public. In fact, other than the Real Estate Settlement Procedures Act (RESPA) of 1974, Regulation Z, the Federal Consumer Credit Protection Act, the Michigan Consumer Protection Act, licensed mortgage lenders (mortgagee) owe no fiduciary accountability to a mortgagor (that's you). And, if that's not enough, the mortgage representatives working for each of these licensed mortgage originators are not required to be licensed or participate in annual continuing education classes (although, there is legislation pending that may change that in the near future). So, as you ponder which mortgage program is best for you, keep in mind your lender of choice, whether virtual or local, may have other motivations and ultimately steer you towards mortgage products that benefit them. Bottom line: ask for references and do your due diligence, since buying a home is one of the single, largest, financial investments you will make in your lifetime. So, take the time to do it right.