First Time Buyer have You Found the Right Mortgage Professional?

Finding the right mortgage lender or mortgage broker is absolutely imperative. You are about to make one of the biggest transactions of your life, who you get to process your loan could save you money and stress. Here are a few things to consider when selecting your mortgage professional.

Will you work with a mortgage broker or mortgage lender? Brokers get paid a fee to shop your application around to find the best lender to fit your needs. Lenders can only offer you the loan options specific to their particular institution (bank, credit union, etc). A Broker could be helpful to good people with bruised credit. Lenders on the other hand tend to be less accommodating to buyers with challenged credit. However, if you don’t have credit issues or special needs you could find using a lender a good fit, it just depends on your situation.

Whether you work with a broker or lender understand that your mortgage professional should work for you. In order to provide you with the best service the lender should return your phone calls in a timely fashion and answer any questions you may have thoroughly. Lenders should inform you of your mortgage options and allow you to make a decision based upon what you are comfortable with. Avoid lenders who will try to push you into products of their choice.

Be prepared to do your homework. Ask family, friends and coworkers who have recently financed a home about their lender and their experience. Search the internet, and local news papers. Have a list of questions prepared to ask each potential lender. Below is a list of suggested questions, if you have additional questions, by all means ask.

What is the interest rate? (be aware that rates change frequently)
What is the annual percentage rate (APR) fixed or adjustable?
How many points will you be required to pay?
What are the closing costs?
How long will it take to process the loan?
What is the lock-in policy for the interest rate?
Is there a prepayment Penalty?
Does the lender have a first-time buyers program?
What are the loan origination, underwriting, settlement and transaction fees?
What is the lender’s track record on closing loans?
Ask if there is a broker involved? (brokers are paid a fee for their services that may be separate from and in addition to the other fees)
Ask how your credit history affects the price of your loan and what you would need to do to get a better price. Take the time to shop around and negotiate the best deal that you can.

Note: To avoid adding too many inquiries to your credit report that could lower your credit score, it would be wise to obtain your own 3-in-1 report with FICO scores for the initial meeting with your mortgage professional because ordering your own report does not affect your score.

Ask questions! We can’t stress that enough this is a huge undertaking and you should leave nothing to chance. Do your own research, the internet holds a wealth of knowledge. Have a complete understanding of what you are getting into.

If you have questions or need further assistance the staff at www.MyFirstMichiganHome.com will be more than happy to help