Know Your Lender
by: Mari Takeshita
Lenders may look and sound the same but they are not!!
- A lender needs to know all of that info before they can possibly quote an accurate interest rate.
- Can they explain all of the closing costs – not just the dollar amount, but what the fees are actually for?
- Can they explain all of the disclosures so the borrowers understand them?
- Are they approved by Fannie Mae, Freddie Mac, FHA, VA, and CHFA?
- Do they personally attend 100% of their closings?
- Do they review the final numbers with the borrower the day before the closing?
- How do they do pre-approvals? Do they know that they have to manually check the investor guidelines and the mortgage insurance guidelines before they will know whether a loan will be approved, or do they just rely on the Fannie Mae or Freddie Mac underwriting software to give pre-approvals?
- Are they familiar with all the down payment assistants programs and more importantly, is their office qualified to work with all of them.
- Don’t let a lender quote interest rates without knowing the borrower’s credit score, the size of the loan, the amount of the down payment, the occupancy type (primary residence, second home, investment property), and the property type (single family residence, townhouse, condo)?
- Don’t let a lender charge an application fee. There should never be an application fee.
- Don’t let a lender tell you that you are approved unless you have a letter stating that you were underwritten and approved by an underwriter.
- Don’t let the lender tell you to go find a home and then do the loan application. There are too many surprises that can harm you and your purchase.
Working with the right lender for you isn’t as easy as looking up someone on the internet. Your needs are different than the guy next to you.. A Realtor can help you determine who the right lender will be and who will work best for you.. I always recommend a lender based on the needs of the client.. I don’t just give you 3 and say pick your own.
Your loan is the most important financial decision you will make and the lender you use is the key.
Cell – 303.941.MARI (6274)
Fax – 720.208.0215