Researching the Bank

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Do I need to research the bank I get my home loan through?

Researching the Bank

When faced with the serious decision of which financial institution to get your home loans through, you need to consider the financial health of the institution before committing. Home loans are about more than just the rate you get; home loans create a relationship between lending institution and homeowner that could span decades and result in a whole host of additional business. If your lender is not financially solvent and is bought out after you're given the loan, then your lender will become the new bank or institution that buys your original lender.

If this happens, the bank transition should be smooth and should not require any additional paperwork from you. However, it's possible that you might not like the institution that becomes your lender. You may disagree with its fee policies and, if you have other accounts with them, you may find that you do not want to give them your business--after all, you made the decision to be with your original lender, not the new one. So do some checking to make sure the bank you're using is FDIC insured and that there has been no recent negative news that could indicate shaky financial ground.



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