5 KEY QUESTIONS TO ASK YOUR MORTGAGE LENDER

There is no shortage of banks and mortgage companies who want your business. Go ahead, just log on or tap your smartphone and do a search for mortgage rates and you�ll see what we mean. While the internet will provide a wealth of information, most borrowers use someone local or a mortgage company referred by family or friends. The point is there is no shortage of where to send your mortgage loan application. But with so many options available, how do you know the lender you ultimately select is the right one? Here are five key questions to ask a potential mortgage lender.

Are you a lender or broker? While most mortgage companies in today�s environment offer the same or at least very similar suite of mortgage loans, there is a difference on how the loan is originated. A mortgage broker is a company that accepts your mortgage loan application and then sends it to the ultimate lender who will process and approve your loan. A mortgage banker originates, processes, approves and funds the mortgage from start to finish.

What Are Your Closing Costs? When speaking with a lender and want to know about closing costs, there is a big difference between lender�s closing costs and fees from third parties. Lenders have complete control over internal charges and they can�t vary from the original quote until your closing. When comparing lenders, don�t just look at the rate but at the individual fees the lender requires.

When Can I Lock? When you get an interest rate quote over the phone, online or an email, it�s a safe bet your rate isn�t guaranteed or locked in. Lenders won�t lock in a rate without a completed, documented loan application and most likely in some sort of an approval stage. It costs lenders money to lock in a loan that doesn�t close. That means your lender must be assured your loan will make it to the closing table.

What Are Third Party Closing Costs? Your lender can provide you with an initial cost estimate that will list potential charges you could see at your settlement. In addition to lender fees, there will be multiple third party services your lender will need to close your loan.

What Are Your Processing Times?  When your offer is accepted the clock begins to tick and your settlement date will be listed on the sales contract. Make sure your lender has enough time to close your mortgage loan and meet your settlement date.

For more information or questions about mortgage loans,
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