How to choose a real estate mortgage lender

Karen B. Lawrence NJHOMETEAM

Lenders

Questions to Ask Your Lender
Finding the right loan takes time, and the research can be complicated. Be sure to ask lenders any questions that arise as you explore your options and get the answers before you apply for your loan.

Does the application fee include the credit report, or is that a separate fee?
Some lenders include the credit report in the application fee, while others charge for the credit report separately. Find out how your lender handles it to avoid surprises during the application process.
Approximately how much should I factor in for closing fees?
Your lender is required by law to provide a Good Faith Estimate when you apply for your loan. However, experienced loan officers will gladly provide a rough estimate of closing expenses before you apply to make it easier for you to compare their loan against other options you may be considering.
How long have you been in the mortgage business?
Experienced loan officers will guide you through the application process and will know how to present your background and financial information to help you get approved.
Can I lock in the interest rate now even if I'm not closing immediately?
Interest rates can change daily, and there may be a deadline by which you must lock in to ensure the interest rate you want. Many lenders will give you the option to lock in anytime. Find out when you must lock in before you make any commitments.
Will I be penalized if I pay my mortgage off early?
Make sure that you can pre-pay your loan without incurring a penalty. You may not plan to make additional payments in the beginning, but remember that your financial situation can change during the term of your loan. The option to pre-pay can save you thousands over time, providing you aren't charged a pre-payment penalty.
There are so many kinds of mortgage programs out there - Which one is right for me?
The answer depends largely on your current financial situation (credit rating, available cash for down payment, level of income) and your long-term strategy: Is this a home you plan to live in for a long time or a short time? Make sure you discuss your strategy with your loan officer so he or she can recommend a good program for you. It's also a great idea to include your tax professional or accountant in the discussion. Your tax status should also be factored into the financial equation.

And if you're still not sure....

Ask us! We have a list of mortgage brokers who provide high quality service and straight talk that our customers appreciate.

® njhometeam.com 2003