Looking For A Mortgage Lender?

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.

Relatives and friends can be a good source for a referral. If you have a Realtor you trust, ask them too. 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.

Here are some good questions to ask them: * 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? * If rates fall, can you break out of your lock? * Will they guarantee closing costs? * 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 prepayment penalties and if so what are they? * How much are the loan origination fees and discount points? * Are loans approved in house, or do they need to be sent to underwriting externally?

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. Shopping for the right lender can be a hassle but if you want to get best loan for you take the time to research. Be cautious of any sites that ask for your Social Security number early in the process. 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. Preapproval can actually make the home shopping experience much more enjoyable and less stressful since you will: * Save time by looking at the right homes. Homes you are able to afford * Spend more time looking at the homes that you might purchase. By culling out the homes that aren’t in the right price range anyway, you can use your time comparing features like kitchens, garages and back yards. * 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

A home purchase is probably the single largest purchase you will 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 new homes in San Diego.