You must ask certain questions when you’re looking for a mortgage lender. Calling lenders and getting their rates is not good enough. You will probably end up with a great salesperson and possibly not end up with the best loan package for you.
You can ask a friend or relative or if you already have a Realtor, ask them. But make sure you also ask why they prefer this particular lender over others? You will probably get a lot of recommendations, however, you obviously can’t work with all of them (you can however have them compete for your business). Use the following questions to narrow down the list and select the lender or mortgage broker that best meets your needs.
Some things you need to look for are: * What type of loan products does their company offer and how long has the person been in the mortgage industry? * How to they determine the interest rate and what rates are currently being offered? * Are you able to break the rate lock if rates improve? * Are closing costs figures guaranteed? * Do they ask questions about your financial situation before matching you with a loan product, or are they just interested in closing the sale? A good lender should be interested in your goals and matching you with the right product. * Will the lender continue to service your loan over it’s life or will they sell if off to another company? * Are there any prepayment penalties? If there are, what are they and when do they kick in? * How much are the loan origination fees and discount points? * Do they approve their own loans in-house?
You can shop for loans online but beware that the promise of one-stop loan shopping comes with a reputation of bait and switch on rates and fees. It can be time consuming to research several lenders, but it’s well worth the time you’ll invest if you can find the best loan package for you. Watch for sites that ask for your Social Security number up front. Some of them ask for this information so they can pull your credit report. If many of them do that, your credit score will suffer. It’s a good idea to wait until you have selected a lender, or at least narrowed it down to two or three, before you let them get a credit report.
Once you’ve chosen a lender, go through the steps to get pre-approved. Shopping for a new home will be less stressful and more fun once you’re pre-approved. You’ll be able to: * Save time by looking at the right homes. Homes you are able to afford * Take more time to examine the homes you are looking at. You will have more time to determine if that garage is really large enough or if the yard is big enough for your dog and your kids to enjoy. * Skip the frustration of shopping above your price range, having your heart set on a home, only to find out that you can’t qualify for the loan after all. * You’ll be able to negotiate the price and terms of the sale, with the knowledge that the loan is already in place * Have a shorter escrow, since a lot of the paperwork is already done
For most people, a home is the largest purchase they’ll ever make. Since very few people can pay cash for a home, the financing is a major factor of this purchase. This makes it critical to find the best lender and loan package for your financial situation. It will take some legwork and research on your part, but it’s absolutely essential if you want to get the most for your money.
Find a home loan that fits your needs and then go shopping! Start with these beautiful San Diego new homes.
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