Choosing The Best Lender When Buying A Home

Spending a little time up front will payoff when choosing the best lender. Loan terms, rates and products can vary significantly from one lender to another. Doing your homework ahead of shopping for a property is a wise decision. Here's a list of important questions to ask that will help you when choosing the best lender. 

Important Questions To Screen Potential Lenders

1. What are the most popular mortgages you offer? Why are they so popular?

2. Are your rates, terms, fees and closing costs negotiable?

3. Do you offer discounts for automatic payments, home ownership classes or inspections. 

4. Do I have to buy private mortgage insurance? If so, how much will it cost and how long will it be required?

5. What escrow requirements do you have?

6. What kind of bill-pay options do you offer?

7. Are remote closings available?

Loan-Specific Questions To Ask Before You Sign

1. What would be included in my mortgage payment (homeowner's insurance, property taxes, etc.)?

2. Which type of mortgage plan would you recommend for my situation?

3. Who will service this loan, your bank or another company?

4. How long will the rate on this loan be locked-in? Will I be able to obtain a lower rate if the market rate drops during the lock-in period?

5. How long will the loan approval process take?

6. How long will it take to close the loan?

7. Are there any charges or penalties for prepaying this loan?

8. What's the total payout from me over the life of the loan?

 

Be sure to ask your Realtor who they recommend when choosing the best lender. They'll often know which lenders have the best loan programs, experience and customer service. There can be many hidden fees that you may not be aware of until closing. Your Realtor has attended many closings and will know which lenders deliver on their promises. 

Some Realtors have in-house lenders they work with that offer discounts to buyers when you apply for a mortgage through their affiliate mortgage representatives. Most Realtors will give you the names of three lenders that customers have recommended to them. Be sure to ask your Realtor for advice on lenders. 

 

For more info, on choosing the best lender, contact Treasure Coast Insider Blogger, Mona Leonard at 772-530-6131 Mona@StuartHousesForSale.com.