Selecting a Mortgage Professional

Colleen Kulikowski February 16, 2015

Before you commit to a Western New York lender, here are a series of questions you should ask them.  Next to selecting your Real Estate Professional, the most important thing you need to select is your Mortgage Professional.

There are the obvious questions:

  • Do You Offer Loan Rate Locks?
  • Is There a Prepayment Penalty?
  • Are You Equipped to Approve Loans In-House and will you guarantee the Good Faith Estimate?
  • How Much Time Do You Need to Fund?

But let’s talk about some questions you should ask potential Western New York lenders before you commit to working with them.

Which Type of Loan is Best?

A great Western New York Mortgage Professional will want to discover more about you and your goals before throwing out loan options. The options are very dependent on what you plan on doing over the next couple of years.  One loan is better in certain situations and another loan is better in another. Your financial health will also affect your options.  Just think about it, you would not want a doctor to suggest unnecessary surgery before they take a complete medical history?

A great lender will want to explain the pros and cons to you about:

  • Fixed-rate loans
  • Adjustable-rate loans
  • Interest-only loans
  • Negative-amortization loans

What Are All the Loan Costs?

Each “point” is equal to 1 percent of the loan amount. Therefore, 2 points on a $100,000 loan cost $2,000. Sometimes lenders charge origination fees in addition to points. Points “buy down” the interest rate, meaning the more points you pay, the lower the interest rate. Points are also tax deductible, even if the seller pays some or all of the points.

Your lender will explain all the costs of a loan.  This will include not only fees that go into the lender’s pocket but also related third-party vendor fees such as:

  • Appraisal
  • Credit report
  • Lender’s title policy
  • Pest inspection reports
  • Escrow (where applicable)
  • Recording fees
  • Taxes

An estimate of these fees constitutes the Good Faith Estimate or GFE, which the lender is required by federal law to give to you.  Ready to speak with a lender before you start your home search in Western New York?

What About One Of These Homes?

All statistics are gathered from the Buffalo Niagara Association of REALTORS®.

For more information, call our J. Philip Real Estate Team at (716) 650-0051

Thinking of selling your Western New York home? Interested in finding out the current market value of your single family home, condo or investment property? Then call us at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home.

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