Half of All Homebuyers Don't Do This.
An article I read this morning stated ...
"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
From experience, I can't say that statistic surprises me. I've addressed and written on this topic before.
In previous posts, I've provided a roadmap and examples of important questions for prospective Buyers/Borrowers to ask when searching for a Mortgage Lender/Mortgage services in the Chicagoland area too.
They'll serve you well during your 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?
6. When will you "Lock In" my Interest Rate?
7. What is the Annual Percentage Rate 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?
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 above went on to offer ...
"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".
All of that mentioned above ... paired with the importance of conducting a thorough LO search ... is the best way to find and utilize a lender's services.
I can't stress that point strongly enough!
Don't be in the wrong 50% of Homebuyers! Be in the smart 50%. Conduct a thorough LO search.
Just like shoes, your Originator needs to fit you right!
* In Will County and the greater Chicagoland area, contact me. I'll put my 40+ years of mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI Licensed
American Portfolio Mortgage Corp.
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, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.
Your Referrals are Always Appreciated!