Home Sweet Loan
Posted May 5, 2019 in Real Estate Trends
Many home buyers put a lot of emphasis on the interest rate; however, it might be more important to find the right lender. Here’s why: Sometimes closings get stalled, for example, simply because a lender doesn’t get paperwork completed. Timing can be important especially if there are other buyers vying for the same house.
Other buyers place emphasis on monthly payments and closing costs. None of those details will matter, if you don’t have a trusted mortgage advisor who responds to you and whom you can reach outside of normal business hours when needed.
Finding the right person to work with you to buy your home should involve the following:
- Understanding the different types of lenders;
- Requesting an estimate;
- Reviewing the offer;
- Negotiating, if the offer doesn’t meet your expectation.
To understand the different types of lenders means that you are familiar with the differences between banks, credit unions, online lenders and mortgage brokers. Personally, I’m with Peak Mortgage because I understand the value of helping people compare loans. Too often I hear from people that are drawn into an online loan because of unrealistic rates that also can come with a high risk of scams. Fees should always be spelled out in writing.
The Consumer Financial Protection Bureau recommends that borrowers get a bid. This should not cost more than $30 or the cost of a credit report for you to obtain this estimate. When you have your loan estimate, be sure to understand the interest rate, closing cost and other fees associated, prepayment penalties and lifetime costs of the loan. It’s a good idea to bring that estimate to closing to compare against the closing disclosure form. There are great explanations at the Consumer Financial Protection Bureau’s website at consumerfinance.gov under “know before you owe.”
Lastly, if you are not sure of something, ask! It’s okay to question your lender. Your lender is there for you. You are the customer and the boss. You have many choices. It’s a privilege to serve the Greater Vancouver area as a local person living in the same community as you.
Please email me with your questions at MPattullo@PeakMtg.com
We lend where we live,
Mortgage Advisor • MLO# 229675 • Peakmtgnw.com