Buying a house can be overwhelming. There are dozens of essential steps, and you will have to hire multiple professionals to complete the process. With all of the details involved, it’s very easy to throw your hands in the air, and just accept whoever your Realtor (or your uncle Bob) recommends.
However, you can lose a lot of money this way!
While they may be suggesting top-notch professionals, it’s hard to know for sure until you shop around a little bit. We are NOT recommending that you automatically choose the cheapest option. However, if you compare and contrast several people in the same industry, it can help you make a great decision about who to work with.
So what companies should you shop around for?
1. Mortgage Companies
There are many, many mortgage companies in Grand Rapids. These vary from small operations to large conglomerates, and include banks, credit unions, and independent organizations. Don’t be afraid to talk to a few, and find the right fit for you!
Different companies will offer you different interest rates, origination fees, and levels of personal service. Most operate on standards from Fannie Mae and Freddie Mac, and many will end up packaging your loan and selling it to another institution. This is not necessarily a bad thing, but you should understand the complete process as you apply for a loan. After all, this is a big commitment – make sure you’re working with great people!
Mortgage companies provide a valuable service. They also make a lot of money from qualified homeowners, so they may compete for your business if you are financially stable. Get multiple quotes when possible.
Also, if you’re looking into different types of mortgages, such as FHA, VA, or RD loans, make sure your lender is qualified and experienced in that transaction type. You want the process to be as smooth as possible.
2. Inspectors
Inspectors vary wildly in the quality of their work. We have had inspectors miss obvious termite damage, poorly run electrical systems, and major foundation flaws. You want a pro, who will be able to save you from thousands of dollars of repairs.
As a result, you should absolutely shop around. Get recommendations, and call their referrals. Find the inspector who notices every little flaw in the home.
In this case, you should NOT be shopping for the cheapest person (necessarily). You want the best pro you can find, because you don’t want to be surprised later on.
3. Title Companies
A title company does many crucial things. They investigate and make sure that the seller is actually the owner, and that there are no additional liens placed on the property. They also help coordinate paperwork, file documents in the right places, and generally help ensure that all of the details are taken care of.
They will also insure the title of the home, which protects you in case someone else claims to own it 10 years from now.
Most mortgage companies and realtors will recommend a specific title company. This can be fine, and in many cases is a good choice. However, don’t be afraid to shop around! Some companies are fast, accurate, and have great service. Others will leave you frustrated. In addition, some providers charge higher rates for the same insurance. Make sure you’re getting a good one!
Many people don’t realize they can shop around for these services. Do your homework, and be rewarded with better service, results, and prices!