 |
|
|
|
|
|
|
|
|
|
|
|
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
 |
 |
 |
 |
 |
|
 |
|
|
|
|
|
|
|
 |
|
||||||
 |
 |
 |
|
||||
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
 |
 |
|
||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
Homebuyer
Guide
Choosing a Lender
It pays to compare. How should you choose a lender? A good place to start is with your local real estate broker. These professionals have a good grasp of the lending picture in your area. They also maintain valuable contacts with selected lenders. In addition, you’ll want to do some shopping on your own. When you do, these are the kinds of questions you should ask.
What type of loans are available? Fixed rate or adjustable? 15-year term? 30-year term? Bi-weekly payments? Mortgage Revenue Bond Loan? If you’ve decided on a particular type of loan, your first question should be:
What’s the APR? The annual percentage rate (APR) is a good gauge for comparing lenders - better than interest rate alone. This is because federal regulations require that lenders give an annual percentage rate for every interest rate they advertise, and that the APR reflects additional costs such as points and fees...all of which directly affect the total cost of financing to you.
Are the rates quoted negotiable? Some lenders are willing to offer relationship discounts - reduced fees or points, or a slightly lower interest rate - to the customers. This includes customers who are refinancing. Others may be willing to offer you a lower interest rate if you agree to a larger down payment or higher loan fees. Be sure to ask.
How long should it take before my loan is approved? Turnaround time on your loan can be critical - more important than interest rates or fees - if you’ve located a "good deal" requiring that you move quickly. Time will also be critical, if you’re buying one home and selling another. Your ability to get all information required to the lender in a timely manner can impact the length of time it takes. A loan on an existing house should be processed within 30-60 days. A loan on new construction could take up to 120 days. Processing time can affect the actual interest rate you end up paying. Some lenders today won’t offer a rate guarantee during the time your loan is being processed. Or, if they do, they may only guarantee a rate for a limited period of time. (Note: Some lenders may be willing to give you a preliminary approval on your loan, pending appraisal.)
Is
there a loan application fee? Many lenders charge a fee to cover the costs
of processing your documents. If so, be sure to ask whether this fee is
refundable if your loan is not approved, or you withdraw your application.
Back to main Homebuyer Guide Page