Finding the “right” mortgage lender and loan program can be a daunting experience. Even if you know that you want a 30-year fixed rate mortgage loan, you are still faced with the challenge of selecting a mortgage lender that you feel comfortable with. First and foremost, you want to make sure that you are getting a “good deal”. Should you select the lender that has those frequent television ads? The one that sent you a flyer through the mail?  

 

One of the problems borrowers face is the difficulty in comparing the offers from multiple lenders. What are their assumptions? Here are some questions to ask.

 

1)      What are the mortgage rate, points, and APR?

2)      What credit score is the rate based on? Is your credit score good enough to qualify for that rate?

3)      What is the loan-to-value (LTV) amount that the rate is based on? In other words, if it is based on an 80% LTV, your home loan amount must not exceed 80% of the value of the home.

4)      What is the lock period (i.e. is the rate good for 30 days, 60 days, 90 days?). Rates for longer lock periods may be higher so if the rate is based on a 30-day lock, make sure that you/the lender can close the loan in that timeframe.

5)      What are ALL of the fees and closing costs?  Make sure you get an initial fee sheet or Good Faith Estimate (GFE) specifying all fees and closing costs. If the lender gives you an initial fee sheet (not a GFE) while you are still in the shopping stages, the law requires that the lender give you a GFE within 3 days of your application. This ensures that there won't be any surprises on the day that you close the loan.

 

INFOTRAK provides local mortgage guides to help you to compare home loans and rates in your local market. Please go to www.infotrak.com/search-local-rates.html for the latest rates in your area. 

You can also calculate your monthly payments with our user-friendly mortgage calculators. Go to www.infotrak.com/mortgage-calculators.html.