As you start meeting various mortgage lenders, you’ll get to find out more about the various loan programs, interest rates and other features that they are offering. Interviewing mortgage lenders is not only a good way to decide which mortgage lender to deal with but also to get to know what kind of options available to you as far as the mortgage loan is concerned. Interviewing mortgage lenders will help you not only get the best mortgage loan but the best mortgage lender overall as one. The following questions and points can come in handy whenever you are shopping for a mortgage broker for a mortgage lender.
What types of loan does the mortgage lender or broker specialize in
In order to meet your own personal needs regarding home loan, it is important that the mortgage lender as well as the mortgage broker has enough experience to point you towards the right resource. For example, a mortgage lender who only has experience in dealing with single-family homes might not be able to help you purchase a vacation property or cooperative apartment. Similarly, if the broker has limited experience he will have less knowledge of the various mortgage lenders and the different programs that suit your needs better. Result is that he could try and match you up to a loan program or a lender that does not offer you the best deal possible.
How does the lenders loan approval process work
You should also know whether the lender operates locally on not. Who are the people who are going to be involved in the approval process of your loan application and where are these people located? The best lenders approve loans locally and don’t send your loan application to a mammoth out-of-state corporation headquartered where a faceless committee decides on the fate of your loan application based on whether it matches with their distant and flimsy know how of your locality or not. Good lenders should try the best to get you your loan approval and be ready to work towards that direction. They will also help you analyze your loan application and warn you when possible of any advance of any possible problems and suggest solutions as well. In a nutshell, a good mortgage lenders should do his utmost to get you the best loan and comes possible.
How competitive are the lender’s rates?
Comparing various mortgage lenders will help you get an idea of whose rates are more competitive than the others. Just because a mortgage broker claims that he can offer you a certain rate of a particular deal, does not mean that he can come through with it. The final verdict on the rate will depend upon processing a lot of paperwork like your credit history, credit score, employment history, cash down payment, purchase of points etc. If you narrow down your selection to a couple of lenders or brokers do not hesitate to ask them to best match the rate of the lowest price lender you find. Low rates and charges are negotiable. You must always keep this in mind. You must also always ask for a good-faith estimate that should list out all the costs and fees associated with the loan that will help you analyze whether a given loan with a lower rate of interest does not have any hidden costs to. Getting a written estimate goes beyond than just getting a sales pitch from the lander or the broker.
Does the mortgage lenders speak simply and answer questions candidly?
Good mortgage brokers are willing to explain the technical features and the terms in simple language to the borrower. They are also open about disclosing all fees and charges associated along. A warning sign is when any pertaining question you ask doesn’t get answered by the mortgage lender or broker. This indicates that you could either be dealing with a subversive lender or one who lacks the knowledge to deal with your requirement. Good lenders also meet with deadlines which is especially critical if your loan is for home purchase. If you have made an offer on the property, missing a deadline could sabotage your purchase completely. If you’re refinancing to lower your loan rate, delays could cost you money and also to miss out on capturing the particularly low interest rate. You may also ask for customer references when you narrowed down your list of potential mortgage lenders.