When you are purchasing a home, the mortgage lender you choose will significantly impact your finances and emotional well-being. A prudent choice can make the difference between a smooth and easy transaction and one fraught with problems.To help make sure you get off to a good start, here is some information you should know about choosing a licensed Connecticut mortgage lender.
Check the License
Before working with any lender, find out if they are licensed by the Connecticut Department of Banking. Only those with a license can provide legitimate mortgage lending services as per Connecticut law.
It is best to avoid lenders who are not licensed because there is no way of knowing whether one has met high standards for honesty and business practices.
A list of all licensed mortgage lenders in Connecticut is easily accessible online through the Connecticut Department of Banking’s website.
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Check the Company History
According to reports, for a 30-year fixed loan type in Connecticut, the mortgage rate is around 3.37 percent. While not always a guarantee that a lender will be dependable, it is good to know what kind of company you are dealing with when you select one to work with for your home purchase.
A quick check of the past is all that it takes to get you started finding out about a company’s reputation. The Federal Trade Commission has established rules requiring companies to disclose their past when seeking new clients.
Typically, this requires lenders to offer details of closed complaints against them, dates of any administrative actions they have faced, and information concerning their current legal status. To find out availability, you can ask the Connecticut Department of Banking for a copy of the company’s history report.
Check on Current Status
When you consider working with a specific lender, it is wise to check if they have any pending problems that affect their ability to conduct business.
The state agency keeps records of any complaints or issues related to its business practices, employees, or other affiliates. You can check the status of the individual you are considering working with by making an official complaint through the Connecticut Department of Banking website.
Click on “File Complaint” and fill out the form provided online. It is not necessary to provide personal information.
Closely Review Any Contract for a Loan
Once you have found a licensed Connecticut mortgage lender that you feel is a good choice, give it your full attention when signing on the dotted line. Any loan agreement should be written so that both parties know exactly what the deal’s conditions are and how it will be enforced.
If any terms or conditions in a document appear vague or confusing, clarify them with the lender before signing any paperwork. You must not be afraid to ask questions if there is anything unclear.
When it comes to closing a deal on a home purchase, having an attorney who specializes in real estate review any loan agreement and all other documents regarding the transaction can also help protect your interests as a consumer.
By knowing how to choose a licensed mortgage lender in Connecticut, you can rest easy as you take the following steps toward your home purchase. With a bit of effort and patience, it is possible to find a reputable company from which to borrow money for the purchase of your new home.