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The Do's and Don'ts of Shopping for a Mortgage Lender

Sheryl Landrum
LoanBiz Columnist

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Article Rating , 4 out of 5 based on 1 votes

The key to your new home loan, or mortgage refinance, is your success in getting a mortgage loan. What are the do's and don'ts when shopping for a new home loan.

Questions to ask your Loan Officer When Shopping for a Home Loan

  • Do you represent a mortgage lender, a mortgage broker, or both? What types of loan programs do you have available?
  • Are you licensed? Not all loan officers are licensed so make sure yours is. Licensed loan officers have passed real estate course work, a state test, and are accountable to the Department of Real Estate.
  • How long have you been in business and how many loans do you close each year?
  • Can the interest rates be locked and for how long?
  • What are the loan and closing costs associated with a mortgage with your company?
  • Can I have a Good Faith Estimate? Any loan officer who hesitates is one to stay away from.

What Not to do When Shopping for a Mortgage Lender aka do NOT Call Asking for Interest Rate Quotes

  • Interest rates are dependent on numerous factors. An interest rate quoted over the phone by a lender who hasn't taken your full mortgage application may be under, or over, what you can actually qualify for.
  • Interest rates can change daily. A loan quote you get today may not be available at the same price tomorrow.
  • Rates quoted on the phone are not locked rates. Many lenders will simply throw out low rates to entice you to commit.
Forewarned is forearmed. Your home mortgage loan is probably the largest investment and expense you have. Make sure you talk to a reputable loan officer and/or lender before making a final decision. The money you save will be your own.

About the Author
Sheryl Landrum is a Senior Loan Officer with First Capital Mortgage in San Diego and Prudential Realty in Bonsall, California.

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