You must ask certain questions when you’re looking for a mortgage lender. Calling lenders and getting their rates is not good enough. You will probably end up with a great salesperson and possibly not end up with the best loan package for you.

You can ask a friend or relative or if you already have a Realtor, ask them. But make sure you also ask why they prefer this particular lender over others? You will probably get a lot of recommendations, however, you obviously can’t work with all of them (you can however have them compete for your business). Use the following questions to narrow down the list and select the lender or mortgage broker that best meets your needs.

Here are some good questions to ask them:

– How long has the person been in the industry and what types of products does their company offer?
– How to they determine the interest rate and what rates are currently being offered?
– If rates fall, can you break out of your lock?
– Will they guarantee closing costs?
– Are they interested in your particular financial situation and goals or just closing the deal? A reputable lender will try to find out all about you before they start talking particular loan packages.
– Will this company service your loan after it’s closed, or will the sell it on the secondary market?
– Are there prepayment penalties and if so what are they?
– How much are the loan origination fees and discount points?
– Do they approve their own loans in-house?

You can shop for loans online but beware that the promise of one-stop loan shopping comes with a reputation of bait and switch on rates and fees. Shopping for the right lender can be a hassle but if you want to get best loan for you take the time to research. Be cautious of any sites that ask for your Social Security number early in the process. Some of them ask for this information so they can pull your credit report. If many of them do that, your credit score will suffer. It’s a good idea to wait until you have selected a lender, or at least narrowed it down to two or three, before you let them get a credit report.

Once you have a lender, get preapproved. Preapproval can actually make the home shopping experience much more enjoyable and less stressful since you will:

– Save time by looking at the right homes. Homes you are able to afford.

– Take more time to examine the homes you are looking at. You will have more time to determine if that garage is really large enough or if the yard is big enough for your dog and your kids to enjoy.

– Avoid being disappointed. Now that you are preapproved you can make an offer and not be worried that you won’t get a loan for the home of your dreams.

– You can negotiate the price knowing that you have the loan in place

-Have a shorter escrow, since a lot of the paperwork is already done

For most people, a home is the largest purchase they’ll ever make. The financing costs can exceed the actual price of the home. Insuring that you are getting the most for your money takes time and effort but with the proper research and information you can be assured you will find the lender and the loan package that is best for you.

Author Bio: Find a mortgage that fits your needs and then go shopping! Start with these beautiful new homes in San Diego.

Category: Real Estate
Keywords: real estate financing, mortgage