For some people, establishing a long-term relationship with a lender is just as important as saving money. "It's not always about the cheapest amount," Garcia says. "You are looking at a relationship for life."
Others don't really care about the relationship as long as they see the financial benefits. Garcia also points out that it's not unusual at all for companies to transfer the servicing of a mortgage immediately after closing. "Your loan can potentially be sold every 12 months," he says. "Some bigger, national companies do not do that as much. That's something to consider, as it may or may not be something that bothers you."
Before choosing a lender, decide on a few things. Do you care whether your loan is sold? Do you want the convenience of walking into a local bank to make a payment and/or talk to someone who really knows your loan? Or are you fine with online transfers, auto-withdrawal and talking to any old representative? There's no wrong answer; it all comes down to personal preference.
McClellan also recommends looking into whether or not rewards are offered by your existing bank before getting too far down the line. For instance, some banks offer thousands of credit card points, airline miles or other perks if you take out a loan with them. "Leverage the relationship you have with a lender where you already do your everyday banking and participate in rewards programs as lenders offer their customers special discounts and incentives on products and services," she says. However, since rewards change all the time, don't let them be your primary decision-maker for which lender to go with. Closing costs and the interest rate are more important.
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