|
As soon as the sales contract is signed, obtaining financing for
the new home becomes key for most buyers.
When most people think about choosing a mortgage lender, they
think about finding the lowest rate. Bear in mind that mortgage
packages consist of more than interest rates. They consist of a
quoted rate, plus origination fees, discount points (prepaid
interest assessed by the lender at settlement) and other fees,
plus a full range of terms including adjustable versus
fixed-rates, low down payment versus high down payment, the
presence or absence of prepayment penalties, and many other
features.
In addition to the financial considerations, you will want a
lender you can trust, a lender you can work with effectively,
and a lender who offers a wide range of mortgage loan products.
Here are three steps that can help you shop for a mortgage.
Talk with your real estate agent. Real estate professionals
are normally in the best position to learn about financing
opportunities in the marketplace. Lenders regularly call agents
to alert them to financing packages. Talk to people you know who
have bought or refinanced a home recently. Check the
newspaper’s real estate or business section. Look in the
Yellow Pages under "Mortgages." Finally, check out Web
sites for lenders in your area. Many sites include information
on home loan programs, as well as publish rates.
Call or visit the lenders on your list. Get a feel for what
it will be like to work with them and how they approach your
needs. You might want to ask for references – recent home
buyers like yourself – and talk to them. Here are some key
questions to ask lenders:
- What type of mortgage loan products do you offer?
- What are your rates?
- What are the points?
- What is your rate lock period?
- What are your closing costs?
- How long will it take to process my mortgage application?
- How long before I know if I have been approved for the
loan?
- What documents do I have to provide?
- What costs am I expected to pay?
- Is a deposit required to make a loan application?
Among the things you’ll want to discuss with prospective
lenders are the rates they offer on mortgages. When comparing
rates between lenders, be sure the rates are for comparable
loans and rate lock periods. Remember to include fees and other
costs so you’re comparing apples to apples.
Mortgage Rates
Previous Page
Next Page
|
