When contacting lenders, inquire and compare the following:

  1. What is loan process?
    • Can application be taken over the telephone, via a website, or in  person?
  2. Financing Options available?
    • Do you need to put any money down to purchase the  house?
    • What are the financing programs, Terms and Interest Caps?
      • FHA, Conventional, VA, USDA,
      • 30 year fixed, 15 year fixed, etc.
      • ARMs (Adjustable Rate Mortgages), Interest Only, Construction Loans, etc.
  1. Interest Rates for different financing options?
    • Is there a loan origination fee? If so, how much?
    • Are there any points being charged for the rate quoted?
      • What exactly is a point?
    • Can you lock the interest rate? If so, is there a rate lock  fee?
      • If interest rate changes, can you get the lower rate?
      • How long can you lock a rate?
    • What is the APR (annual percentage rate) –
      • This is very important when comparing lenders. It is designed to represent the true cost of the loan to the borrower, expressed in the form of a yearly The purpose is to prevent lenders from hiding fees and upfront costs behind low advertised interest rates. The APR will give you an idea of the overall difference in fees charged by the lender to close your loan.
    • Will property taxes and hazard insurance be escrowed?
      • Is there a fee if you don’t want to use an escrow  account?
    • What is the estimated time to close loan?
    • Can they email you a “Good Faith Estimate” or “Closing Costs  Worksheet”?
      • Good Faith Estimate is an estimate of the charges which you are likely to incur at the closing/settlement of your
    • When can you anticipate your first mortgage payment and for how much? How much money will you need to bring to closing/settlement?

Once you’ve gathered your information, if you’d like for me to assist you in comparing lenders, let me know.