Selecting Your Lender
When you buy a home, one of your primary concerns will be finding a lender who can provide the financing you need. So what should you look for? Calling around and asking for interest rate quotes is not the best way to select a lender. Why?
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Interest rates change daily so today's quote may not be available tomorrow.
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Often the rates quoted over the phone are not "locked" prices and the lender just wants to get you in the door. This means that the rates would be subject to change until the day your loan closes instead of being predetermined for a specific period of time.
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The lender knows nothing about your situation or needs so the interest rate they quote may or may not be a program that will fit your individual need.
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You won't know what the lender has to offer you in terms of service.
Competitive rates are important, but when you consider the fact that most lenders get the same sources (and therefore have ssentially 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 real estate agent as a team with the same goal – to close your loan in a timely and professional manner.
Questions to ask:
Are they a mortgage banker / direct lender?
A mortgage banker is a lender who not only originates their own loans, but also underwrites, approves, funds, and services them. A mortgage banker has their own money to lend and therefore they have the most control over the loan process.
Are they a mortgage broker?
A mortgage broker originates loans but does not actually lend the money. They submit the package to an outside source that underwrites and funds the loan. A mortgage broker offers the best opportunity to get your loan approved since they can send the loan to many different lenders. They also offer the widest variety of loan programs.
What is their reputation in the community?
Lenders come and go. Make sure that the company you are dealing with has been around for a while.
When do they lock their rates?
Some lenders only offer 30-35 days rate locks. But what if you need more time? Does the lender offer longer rate locks, beyond 45 days? Will a longer rate lock be more expensive?
Give us a call today to discuss all your real estate needs!
Dafna and Tina,
Team Mizrahi
TEAM MIZRAHI
Dafna Mizrahi & Tina Kyriakis
REALTOR, ePro, Seniors R.E. Specialist, Probate Specialist
Dafna Mizrahi & Tina Kyriakis
REALTOR, ePro, Seniors R.E. Specialist, Probate Specialist
DRE#
Coldwell Banker Residential Brokerage
