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
Whenever you’re searching for a beachfront property in your state, you’ll be able to talk to a few of your family and friends to see if they can recommend a reputable mortgage lender to you that they know and trust. If you’re purchasing a home out of state, you can also talk to a few of your potential neighbors or your real estate broker for the name of some respected lenders in the area.
Beware of scammers
“Predatory lending” is a term generally used to describe any lender that is trying to take advantage of the borrower. Examples include charging high, unnecessary fees, pushing borrowers into a loan they can’t afford, or using lies and deception to obtain clients. Carefully review all fees and charges–your lender is required to give you a “good faith estimate” plus the fine print, like loan terms and prepayment penalties. Be on the lookout for any false or misleading information, or any terms that are vague and unspecific. If the fees seem too high or too numerous, look for a different lender.
Ask to see their license
Each state requires all mortgage lenders and brokers to obtain a license. In order to verify that your mortgage lender or broker is legitimate and reputable, request to see a copy of their state license or log on to the state’s licensing website and search for the company online. Any lender or broker that is not licensed or has allowed its license to expire should be avoided. If the beachfront property you’re planning to buy isn’t located where you live, you’ll need to verify the lenders license in the state where the beachfront house is located.
The Better Business Bureau office is also a great resource for obtaining information about your lender. The BBB keeps a record of all complaints that have been filed against the lender. You can review this information to gain more insight into the company’s service record.
Gated Communities USA is a website that provides beach community and beach home information in the US.