How to Shop for a Mortgage Lender: 4 Questions You MUST Ask
Here’s the deal – you’re trying to decide on a loan program, find the best interest rate, figure out fees, and close on time. But how do you shop for a mortgage lender that’ll check off all the boxes you need?
These 4 questions will help you find the very best lender.
#1. What’s their APR?
First off, what does APR mean? It stands for “annual percentage rate”. APR is a number composed of interest and fees.
Sometimes, you’ll be promised a great interest rate upfront. Then after lots of paperwork, you’ll find out fees outweigh the good interest rate. Although online-only lenders can be quick, hidden fees are one of the top complaints.
Check out Paul Cox from our Houston office explain why comparing APR is more accurate than just comparing interest rates.
APR reveals more about costs than only comparing interest rates. Comparing APR is how you shop for a mortgage lender that’ll be most competitive in costs.
#2. Which loan programs can they offer me?
There are different types of loans for all sorts of specific situations. Make sure your lender informs you of different choices.
Teachers, veterans, first-time buyers, rural area borrowers, and many more situations can earn you an advantage with your mortgage.
#3. Can they close the loan on time?
The last thing you want is to lose your bid on the perfect house because you couldn’t close your loan fast enough. Ask your lender if they can estimate your closing time.
In 2018, the average closing time was about 45 days.
At The Wood Group, our average loan closes more than a week faster than the national average time.
#4. What’s their reputation like?
When shopping for a mortgage lender, check out their online reviews. When something goes wrong in the homebuying process, reviewers are brutally honest.
When a mortgage company gets high praises from the internet, chances are that they’re plugged in with the best local realtors, and will make your loan a priority.
Your last stop when shopping for a mortgage lender
With offices around Texas, real human help, competitive rates, and closing times in as fast as 15 days, 200 Texans choose The Wood Group of Fairway each month.
Let’s see what you qualify for. Start with our quick home loan questionnaire!