I often get asked, “What do I need to do to shop for a loan?” There are many different programs, products, and sales pitches, making it confusing to determine which loan product to choose.
Even a plain 30-year fixed mortgage can be confusing, as some lenders will offer incentives such as payments to closing costs or appraisal. Although this may appear to be a great deal, you should look at the details to make sure the offer is as represented. When you are calling lenders asking for quotes, most people inquire about rates; the rate is just one piece of the product the lender is selling. You also want to ask about their costs.
The costs typically charged by a lender are underwriting/administration fee, appraisal, credit report, flood certification and tax service. Some lenders combine some of these as one fee, others itemize the costs; ask if there are any “points”, this is a term that typically means “origination fee” which would be a fee in addition to the above fees.
Most residential loans can be negotiated without points. If you are paying points, be sure you know what advantages the points are giving to you, i.e. a lower rate, no costs, etc., If you are being quoted a higher rate, then maybe the lender is not charging some of the costs. The no closing cost loan typically means a higher rate in lieu of the costs.
If you are quoted a lower rate, then make sure you get a list of the costs, and any points.
This can be confusing, and we can help you. We are a mortgage broker and quote wholesale rates and costs.
Contact us and we can compare the terms quoted to you qith terms offered in the wholesale market.
We offer a variety of products and services, ask us how we can assist you today:
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