Tag Archives: adjustable rate

09.20.13
by

Working With Your Mortgage Lender

(This post is Part 2 of my “Mortgage Lender” blog series. You can read the first blog in the series here.)

Once you’ve found a mortgage lender you trust, it’s time to get to work. But not just for your mortgage pro — you need to be involved, because the more you know, the better.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

You’ll want to know as much as you can about:

RATES

This is one of the most important parts of the homebuying process. Getting a good mortgage loan rate means less money in your monthly payment — and more money in your pocket.

Talk to your lender about:

  • Delivering on the rate or range they mentioned.

    • (It might not seem like it, but there’s a big difference from 5% to 6%.)

  • How your rates may vary, and the contributing factors.

    • (Ex.: Your income, assets and credit will be highly important.)

  • When the rates will be determined.

    • (They cannot be determined until credit and other guidelines are met.)

POINTS

A “point” is one percent of the amount of your mortgage loan. Make sure your lender explains:

  • What your points will be equal to and how they affect your loan rate

  • How points can be charged (for both fixed-rate and adjustable-rate mortgages) in order to increase the yield on the mortgage AND to cover loan closing costs

    • These points are usually collected at closing and can be paid by the borrower or the seller — or may be split between them.

FEES

Banks charge them, lenders charge them — fees are an unavoidable part of a major transaction like a home purchase/sale. Make sure to ask your lender:

  • What fees are associated with my loan?

  • Can you explain each one and how they might affect the overall loan?


GET ALL THE SPECIFICS

There are lots of other details worthy of your attention. You’ll want the answers to questions like these:

  • What loan programs do you offer?

  • Can I see a good faith estimate right away?

  • Can I see estimated closing costs?

  • Are you certain you can get a deal done by closing?

  • Can you get approval for my loan locally?

THE THREE MOST IMPORTANT TIPS ON WORKING WITH YOUR MORTGAGE LENDER

  • Do your homework. This is a huge amount of your money at stake!

  • Make sure you’re working with someone you trust at a reputable company.

  • Before you sign on the dotted line, make sure you understand all the details.

If you have a question about mortgages or choosing a mortgage lender, let me know! I’m a REALTOR who also worked as a loan officer in the mortgage industry — and I can help point you in the right direction.

Think you’re ready to start the homebuying process? Call 267.566.3448 or email me at shannon.rubin1@gmail.com right now!

© 2013 by Shannon Rubin.