Shopping for a Lender?

 

Finding the right lender to work with is a crucial part of the home-buying process. We have a selection of preferred local lenders available for you based on your individual needs and loan type. 

 

If you are shopping for a lender don’t call around asking for a rate quote, here are a few good questions to ask:

 

• What is your on-time closing ratio?

• How long does it normally take to get underwritten loan approval?

• How long has your company been in business and how many loans do you close each year?

• Are you a Mortgage Broker, Mortgage Banker or Direct Mortgage Lender?

• How many different loan programs do you offer?

• Do you have a “docs to escrow” and/or “closing/funding guarantee”?  If so, what is your guarantee and what happens if you miss the date?

• What is your rate lock period and at what point can I lock my rate?

• What are your closing costs/lender fees?

 

 

A few things you shouldn’t do when searching for a lender:

 

• Don’t call around shopping for interest rates.  You are rarely quoted an accurate interest rate over the phone because the rate and loan program is not locked without a loan application.

• Don’t apply to multiple lenders and allow them to run your credit.  Multiple credit inquiries without a transaction can lower your credit score. 

• Don’t switch lenders mid-transaction without good cause.  A slight adjustment in interest rates from one lender to another is not a good reason to change lenders.  It could delay your loan and in almost all cases there are other costs that make up the rate difference.  This can jeopardize your real estate transaction and cost you your new home.

 

In the end, one of the most important things is that you are able to work well with the lender you choose and they are responsive to your needs.