What to look for when shopping for a loan
Obtaining a loan is fairly simple to do, however it is very important for you to understand what to look out for.
For the most part lenders can be very similar especially now with all the government regulations. The breakdown typically consists of mortgage brokers, direct lenders, national banks and online funding institutions which all could and can be great resources depending upon your wants and needs.
The key things to look for when shopping for a loan is what does the lender charge to process the loan (broker fee, processing fee, discount points, funding fees, etc), additionally what interest rate are they quoting you. This can be a hard one to judge as we have seen a lot of “bait and switch” deals here. A lender can quote you at any time what the rate at that moment is based on your credit profile, however they cannot lock in that rate until you have a purchase under agreement. Unfortunately we have seen far too many buyers fall for this trap! They select a lender because that person quoted them .5% better of a rate 2 months ago only to get 2 weeks into the escrow and find out their rate is 0.125% higher than what everyone else (who were ethical) was quoting. Lastly you want to look at customer service and responsiveness. During a Real Estate transaction things are happening daily and if it takes your lender 1-2 days to return a call or email that could be detrimental to your transaction.
I know this was a little long winded, but hopefully it helps.
If you are looking for a couple of great lenders, we have a list of lenders we have worked with that have been able to successfully find our clients exactly what they are looking for. CLICK HERE to gain access to the TOP LENDERS in this area.
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