How do you decide which lender is best for you?
There is a lot more to the mortgage process than getting a good rate. High costs in fees and poor service can come as very unhappy surprises.
Here's a list of suggested questions you might ask a lender:
• How large is your company, and how long has it been in business?
• Are you a licensed mortgage broker or loan officer in Texas?
• Is your company a mortgage banker or a mortgage broker? (A banker lends its own funds; a broker searches mortgage sources and arranges for you to receive financing from the lending entity.)
• What is the name, phone number, and e-mail address of the person who will actually be processing my loan application? How accessible is that person?
• Tell me about all loan fees. What fees must I pay up front? What fees will I have to pay at closing?
• How can you assure me I won't pay any unnecessary "add-on" fees?
• Do the costs you are quoting include the lender origination fee?
• Are there loans available with no origination fees? No closing costs? Reduced closing costs?
• What are your interest rates?
• Is there a fee to lock in my interest rate? How long can I lock in the rate? If interest rates go down, can I re-lock at the lower rate? If so, will there be a fee for that?
• What information must I provide to get a mortgage loan?
• What documentation will I have to provide?
• Will you require current tax returns? (Take note of this especially between Jan. 1 and April 15 if you haven't prepared your return yet.)
• How long will it take to get complete and unequivocal loan approval and be ready to close?
• I plan to stay in this house for ___ years. Can you show me the breakdown of any ARM loans you offer vs. fixed-rate loans to see which could save me the most money in my situation?
• What is private mortgage insurance? Other than a 20% down payment, how can I avoid the private mortgage insurance?
• In the last three months, how many loan applications have you taken and how many have you been unable to close?
• Can you give me names and phone numbers of two or three people for whom you've funded loans in the last two months?
Currently, Texas-licensed mortgage brokers must use the standard Conditional Qualification and Conditional Approval letters when representing that an applicant is pre-qualified or pre-approved for a mortgage loan. Mortgage bankers may be required to do so in the future.
--Our goal in maintaining this blog is to provide you with valuable information, tips, and general insight for buyers, sellers and investors in the Dallas Texas real estate market. If you choose to use Exceptional Realty Services, feel free to call us anytime, we'd be honored to help. We can assist you with the process of finding a home, help with getting a loan, information for relocation, listing and selling your home, investment tips and tools, foreclosure assistance, and short sale information.
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