SERVICES FOR BUYERS- TALKING TO YOUR MORTAGAGE PROFESSIONAL
Mortgage rates are the single most important factor in terms of the affordability of your new home. The lower the mortgage rate, the more homes you will find that fit your budget. However, mortgage rates, on average, change every four hours. Every time the mortgage rate changes, so does your budget. This is why it is important to ask your mortgage professional the right questions. Here are six to get you started:
Are you a bank, a broker, or both?
WHY? There are a number of reasons that this would be relevant to your purchase process. Mainly, however, some broker/banks that originate loans and sell them to private purchasers offer the same benefit sof an FHA loan—a low down payment and moderate qualification guidelines. But broker/banks don’t have the same restrictive “overlays” that are imposed by some larger banks. This means lower down payments and easier approvals.
Will you explain my Good Faith Estimate (GFE) to me?
WHY? The current, national standard GFE clarifies deal points for the purchaser, including factors such as the broker’s commission and the costs associated with the loan. As a point of customer service, your mortgage professional should be willing and able to help explain this to you.
May I have a fee sheet or estimate of funds to close?
WHY? Although the GFE clearly identifies the costs associated with a your loan scenario, it does not lay out the bottom line—the funding you’ll need to close the transaction. Again, this is something your mortgage representative can help you estimate.
How long will it take to close?
WHY? Knowing the answer to this question will help you maintain a steady and predictable timeline.
Are there any fees for the loan application/approval process?
WHY? There are sometimes upfront charges for credit checks, appraisals, etcetera. You should know ahead of time how much you’ll need to get the loan-approval on track.
How long have you been originating loans with this company?
WHY? Professionals who have been in the business for a long time have advanced knowledge of troubleshooting, work-arounds, and backup plans. They also will know the current underwriting practices to get a loan closed. Its good to have a partner through this process who can help you navigate the unexpected.