Finding the Loan that's Best for You
Securing mortgage financing and determining the cost of your mortgage is a pivotal part of buying a home. An Exclusive Buyer Agent (EBA) will assist you in locating the best interest rate and the lowest total fees for your mortgage transaction. As an informed consumer, you should always compare the mortgage rates, terms and all of the related fees before selecting a mortgage lender.
Careful preparation and the assistance of your EBA can help save you thousands of dollars over the life of your mortgage. Homebuyers typically think of a mortgage as a means to an end—home ownership. They rarely think of it in terms of how much of their hard-earned money is going into someone else's pocket.
How much house you can afford and how much will your mortgage cost? These questions have two legitimate answers—yours, and the lender's. Both answers are payment driven. The lender's answer will be based upon income and credit expense ratios. Your answer will be based upon how important your home is to you and your family, and how much you are willing to allow the financing of home ownership to affect your lifestyle.
An EBA will assist you in your dealings with lending institutions or mortgage companies to protect and promote your best interests. Your EBA will help you evaluate and secure the best mortgage, explaining in detail the forms you are signing, the terms of the loan, closing costs, points and interest rates.
One of the most important benefits of working with an EBA is that he or she will seek home financing that is as advantageous to you as possible, given your financial circumstances.
Questions the Homebuyer Should Ask their Lending Institution
Lender Questions
As a consumer considering the purchase and financing of a home you may realize a number of benefits by being better informed about mortgage practices. The questions below are designed to assist the uninformed borrower when interviewing mortgage brokers. Borrowers have rights and remedies and deserve to expect a reasonable and professional level of competent service from the mortgage broker or lender. Answers to these and other questions can help guide the decision making process in selecting not only the best loan program but also the best mortgage broker. Like mortgage products, mortgage services are not necessarily the same. Become an informed consumer before you borrow.
- In what ways will the mortgage services you provide offer financial benefits to me throughout my home ownership and set you apart from other mortgage brokers and lenders?
- How will you insure that I will be reasonably protected and informed throughout the loan process?
- Will you disclose to me all fees and rebates that you or your company expect to earn as a result of placing my mortgage, whether those fees or rebates are paid directly or indirectly by me?
- Is it your company policy to disclose sales price and contract terms to the appraiser you hire to evaluate the property on my behalf? How will this disclosure or non-disclosure benefit or harm my financial interests?
- Will you explain in terms I can understand the purpose of all my closing expenses and who receives them, as well as an explanation of the fee amounts you expect to earn?
- Typically, what possible property defects, or adverse environmental conditions, do you require be repaired or cured as a condition or loan approval and /or loan funding?
- What suggestions about the various available loan programs would you recommend to help insure the best possible equity realization from a subsequent resale of my property?
- How far in advance of closing will you furnish me with a closing (HUD-1) statement?
- How can you assure me that I can avoid paying "junk fees" and unnecessary add-on loan expenses?
- What information are you required to provide other parties, such as the property owner and the real estate agents about my loan, loan application, appraisal or lender repair requirements?
- If I pay for a copy of my credit report and appraisal report, how quickly will you furnish copies of those items to me?
- If I make the decision not to use your company, will I get my original loan package back, when will I receive it, and what expenses that I pay in advance will and will not be refundable?
- Who can pay a portion or all of my closing expenses and are there any limitations on how much they can pay?
- Will you attend the closing of my purchase transaction to answer additional questions about my mortgage obligations and the loan documents I am required to sign?
- If your actions harm me in any way, will your company reimburse all fees to me that you and your company receive as a result of placing my loan, regardless of who paid those fees?
- If we have a dispute concerning our business matters together, will you require me to mediate these differences between us?
- Will you furnish me with a list of past borrowers for reference purposes?
- Do you intend to sell my loan and, if so, how will that process benefit or harm me when I later expect services from you concerning my loan?
- How can you help me maximize the tax deductions of my closing expenses?
- Under what circumstances will you recommend that I refinance my mortgage to reduce costs and/or to enhance my equity position?
- What subsequent financial or other planning services will you provide me after the loan closing and when will those services be offered?
- Will you aggressively work to help me avoid sub-prime interest loans?