WARNING: Don't Choose a Mortgage Lender until you read this FREE Report!
Darren Meade
November 27, 2006
7 Questions Lenders Hate!
There are tens of thousands of mortgage companies in America. In some states, you don’t even need a license or any experience to originate mortgages.
Because of the sheer amount of choices you will have when you go to obtain a mortgage loan, you need to ask some specific questions before choosing a lender. Asking the right questions will help you find a lender who will offer you great service and low rates/fees. It might also help you avoid a mortgage scam.
Remember, as the client, you are in the driver’s seat. This is your chance to be the big boss and ask the important questions. Interview your mortgage lender using the questions below:
Question #1: Why Should I Choose YOU as my Mortgage Lender?
All mortgage companies say the same thing. “We have the best service.” “We offer the lowest rates.” The truth is, ANY mortgage company should offer decent service and low rates. This is why you should be looking for something unique. Ask yourself this question: “What can this lender give me that no one else can?” You should look for a lender who offers special services that go above and beyond the call of duty. For instance, we offer services like the VIP Home Buyer Program, Agent Locator Service, and more. We give away FREE reports and helpful information to all of our valued clients. We offer FREE coaching sessions, credit reports and pre-approval services. We guarantee the lowest cost and we promise to provide not just good service, but “Exceptional Service”. Does the lender you are currently interviewing offer to do any of these services?
Question #2: How Many Points Will You Be Charging?
In their simplest form, Points are up-front mortgage interest fees paid on a loan to reduce the initial interest rate. Points are fees the borrower pays the lender at the time of loan closing. If you pay one point (1%) on a $100,000 loan, you will pay the lender $1,000 at loan closing, but will reduce your long-term interest rate, which will save you money throughout the life of your loan. Some loan rates have points already built-in, so you need to make sure the lender is very clear on how many points are being charged.
Question #3: How long will my Loan be in Process?
When you apply for a loan and get approved, the loan process is just getting started. The Time between your application date and your closing date is called the “in-process period”. This is when your loan documents are being prepared, processed, underwritten and closed. After this process is complete, your loan will fund. The speed of the in-process period varies from lender to lender and can also be affected by other factors such as they type of loan you choose and how quickly you provide information to the lender. Most loans are processed and funded in 30-days or less. You should inquire with your lender to determine how long it will take to process and fund your loan...
Question #4: What Loan Rate do I qualify for?
Lenders love to run ads on TV and radio bragging about their super-low rates. Unfortunately, these rates aren’t all they’re cracked up to be. The rates you see in these advertisements are usually based on the best-case scenario. They require that you pay additional up-front fees and that you possess a perfect credit history in most cases. This is why we refuse to post rates on this website. It would be a disservice to you, the valued client. Hundreds of loan programs are available and your rate will depend upon which program you choose. Choosing the wrong program might get you a great interest rate, but cost you tens of thousands in the long-run for other various reasons. This is why we prefer to meet with you, discuss your financial goals and then recommend a program that has not only a low rate, but that will also help you achieve your goals. Schedule a FREE consultation with us today.
Question #5: When will you lock in My Loan Rate?
Ask your lender what their policy is for locking in loan rates. Until you lock-in your loan rate, you will be subject to fluctuating market conditions and loan rates. A 6.25% loan rate today might be 6.75% tomorrow. But if you lock in your loan rate, you can ensure your loan rate is guaranteed for a certain number of days, no matter what the market conditions. So, make sure you ask your lender how they decide when to lock-in your loan. Also, be aware that most lenders charge a fee to lock-in a loan rate. Ask what these fees are ahead of time.
Question #6: What is your track record?
Any reputable lender should be able to provide you with a list of testimonials of previously satisfied clients. Some lenders might even be able to show you past-client surveys to prove how good their service was. Ask your lender to provide you testimonials. Be aware, however, that lenders are not allowed to, or might not be willing to, let you contact previous clients directly for confidentiality reasons.
Question #7: Can you Guarantee the Lowest Bottom-Line cost?
All lenders are required by law to provide what is called a Good Faith Estimate of Closing Costs. Use this “Good Faith Estimate” as a tool to find the lowest price. You should ask any lender you speak with for a guarantee that clearly states, in writing, that they have the lowest bottom-line closing cost. If they can’t provide you such a guarantee, in writing, you should find another lender. We guarantee our refinance closing costs, in writing. As a matter of fact, we are so confident that we have the lowest refinancing closing costs that we’ll PAY YOU cold-hard cash if you can find a better deal elsewhere. For more information, schedule a pre-approval or application appointment with us now. At our appointment, we will give you a form that guarantees the lowest costs, in writing.
There are tens of thousands of mortgage companies in America. In some states, you don’t even need a license or any experience to originate mortgages.
Because of the sheer amount of choices you will have when you go to obtain a mortgage loan, you need to ask some specific questions before choosing a lender. Asking the right questions will help you find a lender who will offer you great service and low rates/fees. It might also help you avoid a mortgage scam.
Remember, as the client, you are in the driver’s seat. This is your chance to be the big boss and ask the important questions. Interview your mortgage lender using the questions below:
Question #1: Why Should I Choose YOU as my Mortgage Lender?
All mortgage companies say the same thing. “We have the best service.” “We offer the lowest rates.” The truth is, ANY mortgage company should offer decent service and low rates. This is why you should be looking for something unique. Ask yourself this question: “What can this lender give me that no one else can?” You should look for a lender who offers special services that go above and beyond the call of duty. For instance, we offer services like the VIP Home Buyer Program, Agent Locator Service, and more. We give away FREE reports and helpful information to all of our valued clients. We offer FREE coaching sessions, credit reports and pre-approval services. We guarantee the lowest cost and we promise to provide not just good service, but “Exceptional Service”. Does the lender you are currently interviewing offer to do any of these services?
Question #2: How Many Points Will You Be Charging?
In their simplest form, Points are up-front mortgage interest fees paid on a loan to reduce the initial interest rate. Points are fees the borrower pays the lender at the time of loan closing. If you pay one point (1%) on a $100,000 loan, you will pay the lender $1,000 at loan closing, but will reduce your long-term interest rate, which will save you money throughout the life of your loan. Some loan rates have points already built-in, so you need to make sure the lender is very clear on how many points are being charged.
Question #3: How long will my Loan be in Process?
When you apply for a loan and get approved, the loan process is just getting started. The Time between your application date and your closing date is called the “in-process period”. This is when your loan documents are being prepared, processed, underwritten and closed. After this process is complete, your loan will fund. The speed of the in-process period varies from lender to lender and can also be affected by other factors such as they type of loan you choose and how quickly you provide information to the lender. Most loans are processed and funded in 30-days or less. You should inquire with your lender to determine how long it will take to process and fund your loan...
Question #4: What Loan Rate do I qualify for?
Lenders love to run ads on TV and radio bragging about their super-low rates. Unfortunately, these rates aren’t all they’re cracked up to be. The rates you see in these advertisements are usually based on the best-case scenario. They require that you pay additional up-front fees and that you possess a perfect credit history in most cases. This is why we refuse to post rates on this website. It would be a disservice to you, the valued client. Hundreds of loan programs are available and your rate will depend upon which program you choose. Choosing the wrong program might get you a great interest rate, but cost you tens of thousands in the long-run for other various reasons. This is why we prefer to meet with you, discuss your financial goals and then recommend a program that has not only a low rate, but that will also help you achieve your goals. Schedule a FREE consultation with us today.
Question #5: When will you lock in My Loan Rate?
Ask your lender what their policy is for locking in loan rates. Until you lock-in your loan rate, you will be subject to fluctuating market conditions and loan rates. A 6.25% loan rate today might be 6.75% tomorrow. But if you lock in your loan rate, you can ensure your loan rate is guaranteed for a certain number of days, no matter what the market conditions. So, make sure you ask your lender how they decide when to lock-in your loan. Also, be aware that most lenders charge a fee to lock-in a loan rate. Ask what these fees are ahead of time.
Question #6: What is your track record?
Any reputable lender should be able to provide you with a list of testimonials of previously satisfied clients. Some lenders might even be able to show you past-client surveys to prove how good their service was. Ask your lender to provide you testimonials. Be aware, however, that lenders are not allowed to, or might not be willing to, let you contact previous clients directly for confidentiality reasons.
Question #7: Can you Guarantee the Lowest Bottom-Line cost?
All lenders are required by law to provide what is called a Good Faith Estimate of Closing Costs. Use this “Good Faith Estimate” as a tool to find the lowest price. You should ask any lender you speak with for a guarantee that clearly states, in writing, that they have the lowest bottom-line closing cost. If they can’t provide you such a guarantee, in writing, you should find another lender. We guarantee our refinance closing costs, in writing. As a matter of fact, we are so confident that we have the lowest refinancing closing costs that we’ll PAY YOU cold-hard cash if you can find a better deal elsewhere. For more information, schedule a pre-approval or application appointment with us now. At our appointment, we will give you a form that guarantees the lowest costs, in writing.