Here are some basic facts to consider before for getting your loan.
Do bankers like the fact I have a lot of credit cards that are not being used?
Usually not. Loan officers tend to count the total line of credit-even if you owe nothing- as a liability. It is therefore a wise practice to close credit lines that you have no intention of using in the near future. Also look closely at the interest rates and fees when deciding which cards to retain.
Will I get quicker results if I submit my application to several banks at once?
No! No! No! When lenders see too many recent inquiries at your credit bureau several negative thoughts come to their cautious minds: Is the applicant in financial difficulty and trying to "borrow all over town"?
If other banks are rejecting this applicant, why should we approve his/her request?
Is he/she trying to "double dip" -borrowing from many sources for the same need?
Don't be fooled by the Rate quote only.
Most conventional mortgage lenders offer the same basic loan products at very similar prices. At Riverside Mortgage, we can can show you how even the same loan rate quote from one lender to the next can still be different. We show you all the cards. Don't be fooled by the interest rate quote alone.
Getting Pre-approved vs. Pre-qualified.
During pre-approval, we do all the work of a full approval, except for the appraisal and title work. You then become like a CASH BUYER and have more negotiating clout with the Seller. PRE-QUALIFICATION involves taking a loan application, after which we get an instant credit report and let you know if you will likely be APPROVED for the loan you are seeking. For refinances, this can usually be done within hours.
Get a Written Good-Faith Estimate.
When applying for a loan, we will give you a Good-Faith Estimate that will show you all of the costs of your loan, including the rate. You should get this from anyone else who you might seek to compare the costs. The cost of a mortgage, however, cannot be your only criterion. There is no substitute for interviewing your prospective lender. Are they a bank or just a broker? Do they fund the loan for you, or do they rely on others to fund your closing? This can be a very important distinction.
Locking in your Rate.
When a mortgage company tells you they have locked in your rate, get a written statement which details the interest rate, the length of the rate lock, and the details about the program.
Should I ever pay "up front" fees to a lender ? Yes, but only to well-known or highly recommended institutions. Also, check with the "Better Business Bureau", get a fee agreement in writing, and if still in doubt, don't. While most institutions are reputable, it is always best to be cautious when agreeing to an "up front" fee.
And finally
Do your homework and check all your options before you sign that contract.
