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Residential Mortgage - Finding The Best Home Mortgage Lender
By: Carrie Reeder
Most people approach the act of getting a home mortgage purchase or refinance
loan the wrong way. They timidly approach lenders and cross their fingers that
they will quality for that all-important loan. But that’s just the opposite of
what most people should be doing!
There are a lot of lenders out there—some great and others that can be difficult
to work with. And here’s the good news—they all want your business! Before
agreeing to a contract with just any lender, you should make an appointment with
(in person or by telephone) and ask them some important questions. Doing so
could make the difference in a wonderful experience and one that you’d rather
forget.
If you are in the process of applying for a mortgage loan—either online or
off—then you should ask the following questions to every lender that you are
considering.
• What are my loan options? Some lenders specialize in only fixed-rate mortgages
and you couldn’t get an ARM if you begged. It’s important to know your options
up-front.
• What is the interest rate? You can easily go online and find the competitive
interest rate on any given day, and you should ensure that your chosen mortgage
lender is offering you one in line with the market.
• How many points will I have to pay to guarantee that rate? Just because
someone offers you a great interest rate, that doesn’t mean there won’t be
strings attached. Be sure and ask if the interest rate they quoted you is
contingent on your buying points.
• Will you charge an application fee? This can vary drastically from lender to
lender, and in some cases the fees are negotiable.
• What happens if I pay off my loan early? Some lenders will include a
pre-payment penalty in their contract, actually penalizing you for paying off
your loan early. If one is included in yours, try to negotiate around it, or
look for another lender.
• Can I lock in my rate? Be sure to ask specifics about this. Will it be
possible to lock in a rate at the application stage, or will you have to wait
until you’ve been approved? After you’ve locked it in, how long is it good for?
• Will I be assigned a person that I should call with questions? It is vital
that one person is familiar with your application and loan documents so you
don’t have to explain yourself every time you call with a question.
• How long will it take you to approve a loan? With the Internet and other
modern advances, there should no reason that a lender can’t process your loan in
a jiffy. If a lender appears to be slow, you should take it as a red flag.
The best way to find a good lender is to use a home mortgage loan company online
that will give you multiple offers from different lenders. You want to let
lenders compete over your business.
About the Author:
To see a list of recommended mortgage loan companies online, visit this page:
www.abcloanguide.com/mortgageloans.shtml - Carrie Reeder is the owner of
ABC Loan Guide, an informational website with articles and more about various
types of loans. |
