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.

Choosing the Right Mortgage Lender

(This post is Part 1 of my “Mortgage Lender” blog series. Coming up in my next blog: “Working With Your Mortgage Lender.”)

Image courtesy of fotographic1980 at FreeDigitalPhotos.net

Image courtesy of fotographic1980 at FreeDigitalPhotos.net


One of the most important decisions you’ll make as a home buyer is choosing the right mortgage lender. It’s really the first major step in your decision to buy!

If you have the full cash amount to pay for a house, you don’t need a mortgage. But most people need to get financing — and what you really need is a reputable mortgage company and a loan officer you can trust.

This is your home we’re talking about, and the big monthly bill you’re about to start paying for years to come. You deserve to work with someone who’s “got your back!”


MAKE SURE IT’S THE RIGHT PERSON

A good starting place is getting referrals from the people you trust the most — your family, friends and colleagues. Get some names of mortgage lenders they’ve worked with — chances are, if they really enjoyed working with them, they still have their card and contact information handy.

Then, check out the company and loan officer online. Search their names and look for any reviews of their services, because many people like to share their experiences — both good and bad — online for others to learn from.


“WHAT CAN YOU DO FOR ME?”

Whether it’s on the phone or at an in-person meeting, the best way to get to know your loan officer is to ”interview” them. Here are some questions to ask:

  • “Will you walk me through this process?
    Real estate transactions can be very complicated. You need someone who will take the time to explain all the terminology and details.
  • “Do you have a lot of clients?”
    You also don’t want to be treated like a number. Obviously, you’re not their only client — but you do matter and deserve to be treated well.
  • “Are you reachable?”
    A good loan officer is responsive. They’ll take your calls, respond to your emails and answer all your questions in a timely manner.
  • “Can you deliver on your promises?”
    Your loan officer needs to meet deadlines and back up what they promise — especially when it comes to locking in your mortgage rate. And there should never be any hidden fees or “oops, I forgot to mention this fee!”

And finally, get referrals from other satisfied customers. If they’re good at what they do, they should have plenty!


ASK ME

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.


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

© 2013 by Shannon Rubin.

Image courtesy of fotographic1980 at FreeDigitalPhotos.net