Mortgage professionals, such as Dustin Dimisa, agree that lenders want to help as many potential homeowners as they can. While this is true, they also understand it is a competitive business, so it is so important for potential home buyers to shop their mortgage around to find the best rates and terms. After all, most people want to work with a lender who can provide a quality rate and the services that fit an individual’s budget and lifestyle.
While this is true, it is necessary to make sure that as someone looks for a lender to work with, an individual asks the right questions, narrowing down the lender options. Some questions to get started can be found here.
Are Rate Locks Offered?
One of the most important questions to ask is if a lender offers rate locks and how long they are provided for. Rate locks are just as the name implies – the lender locks the interest rate a person qualifies for at the beginning of the home search. This is because most lenders understand that the search for a mortgage may take longer than an interest rate will last. With a rate locked-in, a home buyer has one less thing to worry about. Finding a lender that offers this is a financial commitment and appealing because it is not based on what the market may or may not do.
Some mortgage companies will offer a rate lock for up to 90 days or longer, based on the loan program selected. Be sure to discuss the details of this with a mortgage loan originator to understand the lock and the commitment fully.
What Is the Origination Fee and Other Fees Charged?
Most people will find it quite challenging to find a lender with no fees related to the loan program. The most common fees for mortgages are the origination fee. Some lenders include other fees, too, depending on the way they work. The fee amounts will vary, which is why it is necessary to pay close attention to them. This is also going to add to the total “closing costs.” Usually, the origination fees will vary based on the type of loan and the state where the loan is being given.
Can Documents be Sent Electronically?
There’s no question that the mortgage application process requires quite a bit of paperwork. Having to wait for paperwork to be submitted and then reviewed is a huge hold-up in this process. This is one reason why so many lenders are not offering the option to submit required documentation electronically. This is a much more efficient and seamless process for everyone involved and can help to reduce stress.
When it comes to mortgages, there are more than a few questions that need to be asked. By asking the right questions, it is possible to get the mortgage product and terms that best suit a potential home buyer’s need. Asking the questions that are mentioned above is a good way to get this process started.