Merry Christmas and happy holidays, to all! And to all, a good mortgage lender? Yes, to all those who will interact with a mortgage lender in 2011, I wish you a “good mortgage lender.” And how do you ensure a good mortgage lender?
Follow these tips, and you’ll have more success at picking a good mortgage lender:
- Ask about the lender’s experience. Try and work with a lender who has been in the business for at least 10 years.
- Work with someone proactive and who works quickly. If you getting information is like pulling teeth, they are not the one for you. And if you have trouble getting your calls and emails returned in a timely fashion, chances are that will carry over into the transaction.
- Ask a lot of questions. Questions to ask:
- How long have you been in business?
- Are you a mortgage banker, broker or bank, and what is the benefit of working with you?
- How long will my appraisal take?
- How long will underwriting/loan approval take?
- How long will preparation of the closing documents take?
- How long will my interest rate be locked-in for?
- What happens if my lock-in expires and we have not gone to settlement?
- What documents will you need from me?
- What happens if interest rates go down during the processing of my loan?
- What are each of the lender closing costs?
- And expect to be asked a lot of questions. If your lender is not asking a lot of questions, they are not experienced. Expect to answer a lot of questions about:
- your income
- your assets
- where your assets come from (savings, gift, borrowed, transferred from another account)
- your job history
- your debts
- any gap in employment
- any recent, large deposits
- your settlement date
- your debt ratio
- your property type
- Ask to see a copy of the ‘Loan Commitment’ letter when your lender tells you the loan is approved. You may be surprised by what is on the letter that they may not tell you about.
- Certainly shop rate and terms, but if you shop too hard to get the best price, you WILL get what you pay for. And when that happens, don’t complain to the banking commission, your Realtor, the lender’s boss, or your Congressperson. It is our own fault when we expect excellence to come at a rock bottom price. Use a rock bottom lender at your own risk, and remember you have an earnest money deposit at risk, its an important transaction, please shop carefully.
Merry Christmas, enjoy some time off this holiday season, spend time with family, and I’ll be blogging again in the new year. See you in 2011!
Learn More: Questions to Ask a Mortgage Lender