Choosing Your Lender
Choosing your lender by interest rate quotes only is not the best way to plan the home financing you need. Competitive rates are important; however, when you consider the fact that most lenders get their money from the same sources (and therefore have essentially the same rates to offer), you must look at some other factors before choosing a lender. You need a Lender who works with you and your Realtor as a team and has the same goals – to get your loan closed in a timely and professional manner. When choosing a mortgage lender ; Here are some of the questions to ask the Lender when you shop for the best terms financing:
- Are they a Mortgage Banker/Direct Lender?
A mortgage banker is a Lender who not only originates their own loans, but also underwrites (checks all of the paperwork for factual correctness, and represents you to the lender), funds (actually puts forth the funding for you to buy the property), and services (who you will make your payments to) the loan. A mortgage banker has their own money to lend and therefore has the most control over the loan process.
- Are they a Mortgage Broker?
A mortgage broker originates loans (Collects all the paper work and represents you to the underwriter), but does not actually lend money. They submit the package to an outside source that underwrites and funds the loan.
- How long has the Company been in business and what is their reputation within the real estate community?
Make sure the company you are dealing with has been around for a while and has a good reputation.
- Do they lock in their interest rates and for how long?
Some lenders are only Mortgage Bankers (direct lenders) or only Mortgage Brokers. The Lenders I work with is both Mortgage Banker and Broker – a one-stop source for all your financing needs. They can lock your loan for 15, 30, 45, and 60 days. Applicable fees may apply.