There are tens of thousands of mortgage companies in America. In some states, you
don’t even need a license or any experience to originate mortgages.
Because of the sheer amount of choices you will have when you go to obtain a mortgage
loan, you need to ask some specific questions before choosing a lender. Asking the
right questions will help you find a lender who will offer you great service and
low rates/fees. It might also help you avoid a mortgage scam.
Remember, as the client, you are in the driver’s seat. This is your chance to be
the big boss and ask the important questions. Interview your mortgage lender using
the questions below:
Question #1: Why Should I Choose YOU
as my Mortgage Lender?
All mortgage companies say the same thing. “We have the best service.” “We offer
the lowest rates.” The truth is- ANY mortgage company should offer decent service
and low rates. This is why you should be looking for something unique.
Ask yourself this question: “What can this lender give me that no one else can”.
You should look for a lender who offers special services that go above and beyond
the call of duty.
For instance, we offer services like the VIP Home Buyer Program, Agent Locator Service,
and more. We give away FREE reports and helpful information to all of our valued
clients. We offer FREE coaching sessions, credit reports and pre-approval services.
We guarantee the lowest cost and we promise to provide not just good service, but
“Exceptional Service”. Does the lender you are
currently interviewing offer to do any of these services?
Question #2: How Many Points Will You
Be Charging?
In their simplest form, Points are up-front mortgage interest fees paid on a loan
to reduce the initial interest rate. Points are fees the borrower pays the lender
at the time of loan closing. If you pay one point (1%) on a $100,000 loan, then
you will pay the lender $1,000 at loan closing, but will reduce your long-term interest
rate, which will save you money throughout the life of your loan.
Some loan rates have points already built-in, so you need to make sure the lender
is very clear on how many points are being charged.
Question #3: How long will my Loan
be in Process?
When you apply for a loan and get approved, the loan process is just getting started.
The Time between your application date and your closing date is called the “in-process
period”. This is when your loan documents are being prepared, processed, underwritten
and closed. After this process is complete, your loan will fund. The speed of the
in-process period varies from lender to lender and can also be affected by other
factors such as they type of loan you choose and how quickly you provide information
to the lender. Most loans are processed and funded in 30-days or less. You should
inquire with your lender to determine how long it will take to process and fund
your loan.
Question #4: What Loan Rate do I qualify
for?
Lenders love to run ads on TV and radio bragging about their super-low rates. Unfortunately,
these rates aren’t all they’re cracked up to be. The rates you see in these advertisements
are usually based on the best-case scenario. They require that you pay additional
up-front fees and that you possess a perfect credit history in most cases.
This is why we refuse to post rates on this
website. It would be a disservice to you, the valued client. Hundreds
of loan programs are available and your rate will depend upon which program you
choose. Choosing the wrong program might get you a great interest rate, but cost
you tens of thousands in the long-run for other various reasons.
This is why we prefer to meet with you, discuss your financial goals and then recommend
a program that has not only a low rate, but that will also help you achieve your
goals. Schedule a FREE consultation with us today by clicking here.
Question #5: When will you lock in
My Loan Rate?
Ask your lender what their policy is for locking in loan rates. Until you lock-in
your loan rate, you will be subject to fluctuating market conditions and loan rates.
A 5.75% loan rate today might be 6.25% tomorrow. But if you lock in your loan rate,
you can ensure your loan rate is guaranteed for a certain number of days, no matter
what the market conditions. So, make sure you ask your lender how they decide when
to lock-in your loan. Also, be aware that most lenders charge a fee to lock-in a
loan rate. Ask what these fees are ahead of time.
Question #6: What is your track record?
Any reputable lender should be able to provide you with a list of testimonials of
previously satisfied clients. Some lenders might even be able to show you past-client
surveys to prove how good their service was. Ask your lender to provide you testimonials.
Be aware, however, that lenders are not allowed to, or might not be willing to,
let you contact previous clients directly for confidentiality reasons.
Question #7: Can you
Guarantee the Lowest Bottom-Line cost?
All lenders are required by law to provide what is called a Good Faith Estimate
of Closing Costs. Use this “Good Faith Estimate” as a tool to find the lowest price.
You should ask any lender you speak with for a guarantee that clearly states, in
writing, that they have the lowest bottom-line closing cost.
If they can’t provide you such a guarantee,
in writing, then you should find another lender. We guarantee our closing
costs, in-writing. As a matter of fact, we are
so confident that we have the lowest cost that we’ll PAY YOU cold-hard cash if you
can find a better deal elsewhere.
For more information, schedule a pre-approval or application appointment with us
now. At our appointment, we will give you a form that guarantees the lowest costs,
in writing. |