Shopping for a Mortgage! - The first step to shopping for a mortgage online?
Decide the Mortgage Features You Want: You cant compare prices of different loan providers accurately unless you can specify exactly what you are shopping for. When you shop for an automobile, you decide beforehand that you want, e.g., a 4-door Toyota Corolla with Bose speaker system, red trim, etc., etc. Similarly, when you shop for a mortgage, you must know the type of mortgage you want - whether fixed-rate (FRM) or adjustable-rate (ARM), and if it is an ARM loan...... what kind? You must also know your preferred term, points, down payment, lock period and options, including interest-only, prepayment penalty and waiver of escrows.Your mortgage broker will be able to offer you more loan programs from many different lenders when compared to a local bank. Your local bank can only offer there in house loan programs in comparison to the brokers ability to add new lenders with the newest loan programs. To ensure you have the widest selection of loan programs to choose from choose a mortgage broker.
It is common and sensible to not want to disclose too much information when beginning a mortgage search.
Unfortunately, without complete and accurate information from you, a loan officer can't give you an accurate quote.
And, with many sites, the information you fill out online is sold to between 3 and 12 different companies that will now call you on the phone.
Be assured that any information you provide to me will stay with me and will not be sold.
Or please call me to discuss my experience, how I do business and if we would make a good fit. 888-418-4467
Disclose all relevant financial information to your mortgage broker. Mortgage professionals are not there to judge your spending habits and how much you make. Rather, they are there to help you achieve homeownership within your financial means. If you are in any situation in which limits your ability to afford a mortgage, tell your mortgage professional. He can often structure a combination of loan programs to help.
Shopping around for a home loan or mortgage will help you to get the best financing deal. A mortgage, whether it’s a home purchase, a refinancing, or a home equity loan is a product, just like a car, so the price and terms may be negotiable. Shopping and comparing may save you thousands of dollars. Brokers can shop for you.
Besides getting a copy of the GFE, it is also a god idea to get a copy of the truth-in-lending (TIL). The TIL will show the total costs of the loan to you in the form of an interest rate, your annual percentage rate (APR). Remember the APR is not your actual interest rate that your payments are based off of. The other terms of the loan will also be on the TIL. It will have your loan amount, amortization period, and whether or not there is a prepayment penalty. The TIL is a good way to compare different programs and lenders very quickly and efficiently.
Always get quotes from 2-3 different mortgage professionals. This will allow you to make sure you are getting a deal that you feel comforable with. If a couple of quotes are close but one seems to have a 1/8% lower rate or the closing costs appear a couple hundred dollars cheaper don't immediately go through with the cheaper deal. Closing costs can be calculated slightly differently, and the cheaper deal initially may not be the cheaper deal in the end. At this point I highly recommend going with the mortgage professional that you feel more comfortable with. Remember the old saying "you get what you pay for". Going with the absolute cheapest is not always the best. The mortgage professional who returns all of your calls (when he/she says they will), is completely knowlegable about your mortgage loan and all of the details and you feel you can trust should be the final decision maker for you.
One key factor in determining which loan program to choose is knowing how long you've determined you will stay in the home you are buying.
When shopping for a mortgage on line use a site that allows you to choose the lenders or mortgage brokers that your information will be sent to. Applying directly to the lender/brokers site will help you to avoid being inundated with phone calls from websites that sell your information.
Never forget that the integrity and straightforwardness of the mortgage professional with whom you are dealing is paramount! Always make sure you are dealing with someone who is properly licensed, experienced and has a good reputation. Ask for the names of one or two previous clients for reference.
Keep in mind that a good Mortgage Broker can do all of the shopping for you. This will eliminate most of the unwanted telephone calls associated with so-called "rate shopping" websites. Many of these sites sell your personal information to the highest bidders and often lead to headache and confusion rather than lower rates.
Always request and be sure to recieve a copy of a Good Faith Estimate (GFE) from your mortgage broker. This estimate will let you see upfront the fees you will be charged and the interest rate you will be recieving.
This is why it is important to "shop" for your mortgage with lenders on the very same day. Key factors can see mortgage rates changed several times in a given week, sometimes in the same day. The lender that you get a rate from on Monday may not be able to give you the same rate on Wednesday.
How should I go about shopping for a loan? - Call or visit several banks and mortgage brokers. Consider banks where you normally bank first because they sometimes offer their customers reduced interest rates when they have payments deducted from a checking account.
When shopping for a home loan be sure to get everything in writing. Quotes given over the telephone tend to increase unless you have the offer in writing as well. If you are in doubt regarding your mortgage quote then ask for good faith estimate of the rate, term, and fees.
Nowadays, when it comes to shopping for a home loan, one may be able to better comparatively shop several mortgage offers with a few clicks on the internet. However, always be sure to deal with licensed mortgage brokers or chartered banks that will work "hands on" with your mortgage application. Avoid mortgage websites that promise to "give you four offers after completing a form" or "have up to four lenders competing for your business". These are "leads" websites that only look to sell your information. Loan applicants of "leads" websites will have their information sold and resold, and will be phoned by different mortgage companies for months or years to come.
When you are shopping for a mortgage, be sure that you are comparing the same loan programs. A 30 year fixed rate will be different than a 20 or 15 year fixed rate. Provide the same information to each of the companies that you apply with. Just as the length of the mortgage can change things drastically, so can your income, home's value, and employment history.
Licensed mortgage brokers will search and compare many different lenders and loan programs for you. Most of the time, mortgage brokers will find better programs than you can find by shopping around for yourself. Dealing with one mortage broker you can trust will save you a lot of time and stress.
There is no need to shop around with half a dozen lenders. Try to focus more on working with who you feel is most trust worthy and has your best interests in mind. Generally, 2-3 lenders should be enough to give you a good idea what rate, terms, and fees to expect with your new mortgage.
