Half of All Homebuyers Don't Do This.
Will You?
"Americans may be spending more time shopping for shoes than for a mortgage, a report from the Consumer Financial Protection Bureau suggests. Almost half of consumers seeking a loan to purchase a home do not shop lenders, the agency said Tuesday." (" Nearly half of home buyers don't shop for a mortgage") Diana Olick | Kelley Holland
"Publishing the results of a new survey, it was discovered that prospective buyers spent about as much time researching a new television or vehicle purchase than they did shopping around for a mortgage lender. Overall, the survey found 72% of prospective buyers only plan to get one quote for a mortgage."
( "Report: Homebuyers Fail to Put Due Diligence into Researching Lenders")
From experience, I can't say that the statistic and info above surprises me. I've addressed and written on this topic before as it's an ongoing issue. It's one that I've found often goes hand-in-hand with or foretells just how involved and responsive a borrower will be throughout their mortgage processing and our transaction together.
While trying to address and meet this challenge in those previous posts, I provided a roadmap and concrete examples of important questions that prospective borrowers should ask when searching for their mortgage lender/mortgage services.
When answered, each of the questions will serve the borrower well during their lender search. I include that sampling of questions below:
1. How long will my Mortgage Process take?
(If there are no problems or issues that arise, most mortgages are processed within a 30 to 45-day time period)
2. What Mortgage program is best for me?
3. What costs will be involved in my financing?
(Your Mortgage Originator should provide you with an estimate of your Closings Costs, called a Loan Estimate.)
4. What Interest Rates are available to me?
5. Is "paying down" (utilizing Discount Points) the Interest Rate an option ... and is it wise for me to do it?
6. When will you "Lock In" my Interest Rate?
7. What is the Annual Percentage Rate (APR) of my loan?
8. Is it possible for me to improve my credit quickly so I can receive a better Interest Rate?
9. What Mortgage term suits my financial situation best?
10. What is the minimum/maximum Down Payment I will be asked to make?
11. Will my loan be "sold" after my Closing? And what does that mean regarding the payments I make and where I make them?
12. What are the Down Payment requirements for:
A. FHA?
B. Conventional Loans?
C. VA Loans?
13. Is Mortgage Insurance necessary on all loans with less than 20% down?
14. Does the cost of Mortgage Insurance vary with the percentage of Down Payment?
15. Can I finance Closing Costs?
16. Can someone help me finance with a monetary gift?
17. When and How am I able to pay my taxes?
18. Is an Escrow Account mandatory?
Note: There may be questions you will want to ask that are specific to your financial situation or transaction.
The CNBC article mentioned above went on to say ...
"It's also best to know what kind of designations or qualifications the lender has in the industry. Ideally, the lender should be taking a holistic approach and seeing how the mortgage fits into the borrower's total financial picture. They should not just be quoting a rate, but helping with financial planning".
Simply put, that means that experience counts ...
While trying to address and meet this challenge in those previous posts, I provided a roadmap and concrete examples of important questions that prospective borrowers should ask when searching for their mortgage lender/mortgage services.
When answered, each of the questions will serve the borrower well during their lender search. I include that sampling of questions below:
1. How long will my Mortgage Process take?
(If there are no problems or issues that arise, most mortgages are processed within a 30 to 45-day time period)
2. What Mortgage program is best for me?
3. What costs will be involved in my financing?
(Your Mortgage Originator should provide you with an estimate of your Closings Costs, called a Loan Estimate.)
4. What Interest Rates are available to me?
5. Is "paying down" (utilizing Discount Points) the Interest Rate an option ... and is it wise for me to do it?
6. When will you "Lock In" my Interest Rate?
7. What is the Annual Percentage Rate (APR) of my loan?
8. Is it possible for me to improve my credit quickly so I can receive a better Interest Rate?
9. What Mortgage term suits my financial situation best?
10. What is the minimum/maximum Down Payment I will be asked to make?
11. Will my loan be "sold" after my Closing? And what does that mean regarding the payments I make and where I make them?
A. FHA?
B. Conventional Loans?
C. VA Loans?
13. Is Mortgage Insurance necessary on all loans with less than 20% down?
14. Does the cost of Mortgage Insurance vary with the percentage of Down Payment?
15. Can I finance Closing Costs?
16. Can someone help me finance with a monetary gift?
17. When and How am I able to pay my taxes?
18. Is an Escrow Account mandatory?
Note: There may be questions you will want to ask that are specific to your financial situation or transaction.
"It's also best to know what kind of designations or qualifications the lender has in the industry. Ideally, the lender should be taking a holistic approach and seeing how the mortgage fits into the borrower's total financial picture. They should not just be quoting a rate, but helping with financial planning".
Simply put, that means that experience counts ...
An experienced knowledgeable loan officer provides their clients far more than just a "quote" or interest rate. Insights and assistance on a wide range of financial topics and issues, i.e. financial planning, is just one of the many ways that an experienced LO can better serve and benefit their borrowers.
The LO's level of experience directly contributes to a more fluid mortgage process. Experience saves time and money and can also lower the stress level of the transaction participants, buyers, sellers, and professionals.
All that is mentioned above, speaks to the importance of conducting a thorough LO search. I can't stress the importance of performing this important step strongly enough!
Make sure you are not in the wrong 50% (the losing 50%) of homebuyers! Be in the smart 50%.
Conduct a thorough LO search ...
Just like shoes, your loan officer needs to fit you right!
Are you hoping to Construct, Buy, Refinance or Purchase a home or investment property in Chicagoland or somewhere else in Illinois or Wisconsin?
Looking for mortgage financing answers, options, solutions, and experienced assistance? Contact me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
Just like shoes, your loan officer needs to fit you right!
Looking for mortgage financing answers, options, solutions, and experienced assistance? Contact me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
Gene Mundt
Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI Licensed
American Portfolio Mortgage Corp.
NMLS #175656
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:
The Lincoln-Way Area, Will County, (New Lenox, Frankfort,
Mokena, Manhattan, Frankfort Square, Joliet, Shorewood, Elwood, Lockport, Wilmington, Crest Hill, Symerton, Braidwood, Channahon, University Park, Beecher, Plainfield, Bolingbrook, Romeoville, Tinley Park, Homer Glen, Crete, Peotone, Naperville, etc.), DuPage County, Kane County, Grundy County, the City of Chicago, Cook County, and elsewhere within IL & WI.
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