The largest obstacle homebuyers face isn’t hunting for houses. It’s choosing a trustworthy lender because that’s where the money-saving begins. Loan costs and features vary from lender to lender, which is why it can be to your advantage to pick a mortgage lender before you pick a realtor and start looking for houses.
According to the Consumer Financial Protection Bureau’s latest mortgage shopping study, taking the time to shop around for lenders can increase your mortgage market knowledge and your self-confidence. Knowing what you’re getting into when choosing a lender might also make your mortgage cheaper.
The CFPB said:
“Previous Bureau research suggests that failing to comparison shop for a mortgage costs the average homebuyer approximately $300 per year and many thousands of dollars over the life of the loan.”
14 revealing questions any good lender can answer
In a recent Homes.com study, 44 percent of first-time homebuyers said that they felt nervous through the whole process.
A good mortgage lender can ease these jitters by taking care of most of the red tape in advance. Once you get prequalified for a loan, you’ll have financial backing as a buyer, and you’ll know how much you can afford to spend. If you’re shopping in a competitive market, looking for a lender that offers a “like cash” loan program that gives you early loan approval can relieve even more uncertainty. This advanced loan approval makes your purchase as close to a cash transaction without having to pay the upfront cash.
Click here to get in touch with a loan officer who makes it easy.
Asking these 14 deal‐breakers to the lenders you meet can help:
- Can you help me achieve my short and long‐term financing goals?
- How long have you been in business?
- What are you known for in your industry?
- Who does your processing, underwriting, and funding?
- Can I prequalify online?
- What kind of customer service reviews do you have?
- Can you explain and estimate your fees?
- Which loan program do you recommend for me?
- What’s my estimated interest rate?
- How much money will I need to put down?
- How long will it take to process my loan application?
- What can I expect to pay at closing?
- How long will my closing take?
- How can I know this is the most competitive loan rate?
Like talking to a friend (who knows a lot about mortgage)
Maybe your realtor referred you to a mortgage lender, or maybe you’ve been searching for one on your own. Community reputation and customer reviews count — in a national Stratmor Group survey, our customers rated their Cornerstone experience at 96 out of 100 — but you also want a loan officer who knows what they’re talking about. So, put one to the test: Click here to find an experienced, local lender and fire away.
For educational purposes only. Please contact your qualified professional for specific guidance.
Sources are deemed reliable but not guaranteed.