When shopping for a lender the first thing that often comes to mind to compare is rates, but that is only part of the picture. Lower rates often mean higher fees so it's important to look at both. Your lender will also be an advisor, so choose someone you feel you can trust.
Keep in mind that rates can change at any time and sometimes even fluctuate during the course of a single day. Try to do your comparison shopping as close to the same time as possible... also because each lender you talk to will pull your credit score, but if there are several inquiries close together the credit score companies will figure you are comparison shopping so they will all count as only one hit so it won't negatively affect your credit score.
Here are a few questions to ask...
- Are you a mortgage broker or a mortgage banker?
- What is the difference?
- How will it affect my options, interest rate and costs?
- Where is underwriting done?
- How long does it take?
- How quickly would I be able to close after finding the property I want to buy?
- Do you have many problems with appraisals?
- Where will the funds for closing be coming from?
- How will they be delivered?
- Could there be delays in the delivery or release of funds that would delay closing?
- What kind of financing options would you recommend for my situation? Why?
- How do interest rates and closing costs vary in the different programs?
- Would kind of impact would asking for seller paid closing costs make in my situation?
- Would I qualify for any assistance programs? (based on where I live/work and what I am buying, income, profession, first-time homebuyer, etc)
- If I choose to use FHA financing, are you a direct endorsement lender?
- Please provide a written estimate for my best options, including interest rates & terms, costs, cash needed to close, estimated monthly payments
Sharlene Hensrud, RE/MAX Results - Twin Cities Lifestyle Buyer's Agent
