3 Things To
Look For In A Real
Estate Loan
Lender
If you're ready to buy a
new house, you're going to need a real estate loan lender. And finding one
online is convenient and simple! However, there are a few things you should look
out for to ensure that your lender has your interests--and not his--as his top
priority.Make
sure your lender offers options
There are a lot of
options other than the traditional 30-year fixed rate
mortgage. Depending on
your needs and personal situation, an Adjustable Rate Mortgage (ARM) or
Interest-Only mortgage might be a better fit for you. Or, possibly, you may
prefer a loan with a longer or shorter term. A good lender should be able to
offer you a variety of options so you can find the one that best suits your
needs. Be wary of any lender that tries to push one particular type of loan.
Get your
"pre-approval" in writing
Some home purchase
lenders will "pre-qualify" you--but that doesn't mean you're guaranteed to get
the loan! In fact, in most cases, "pre-qualification" means almost nothing at
all. Choose a lender who will "pre-approve" your application instead, which is a
more involved process. When you've been "pre-approved," the loan officer has
contacted your employer, bank, credit card companies, etc. Once you're
mortgage
is "pre-approved," you're a lot more likely to get the final approval on your loan.
Lock in" the rate
you're quoted
Interest rates change
almost daily--they can be down on Monday, and sky-high by Friday! And some real
estate lenders will quote you a super low rate to get your business, even though
they know the rate may change by the time your loan is finalized. If a lender
quotes you an interest rate, ask him/her to "lock it in" for 30, 60 or 90 days.
Reputable online home purchase lenders will guarantee you your promised rate
even if it takes another month or two until you close the loan.
Once you know your real estate loan lender is willing to offer you
mortgage options,
pre-approve your loan, and lock-in your rate, it's time to compare rates, fees
and other charges to make sure you're getting the best deal.
Mortgage Glossary9
