needs. Are they sincere and does it seem like they have your best interest in mind? He or she will be your representative throughout the purchase or refinance.
Transparency is Very Important
Interest rates and loan fees can be complex, but it is important that your Mortgage Loan Originator discusses accurate interest rates and is willing to explain all potential loan fees. This will allow for proper expectations to be set and lead to less frustration or misunderstandings during the transaction. There are several different loan costs associated with mortgage financing. It is important that your Mortgage Loan Originator reviews each one so you understand why you are paying each fee and what it means. If a rate seems too good to be true, it probably is.
Your lender will most likely charge fees, but there are also other third-party fees such as title and escrow charges. Quite often there are also prepaid expenses such as interest, property taxes and homeowner’s insurance. This can get very complicated and should be explained clearly and in detail to you.
A “no-cost” loan is not actually no cost and normally you will receive a higher interest rate upfront to help pay for the fees. A great Mortgage Loan Originator will be able to evaluate whether it is best to raise the rate in order to give a lender credit to help with the costs, or it might make more sense to increase the loan balance instead and take a lower rate.
Collaborate About Your Credit Detail
Did you know your credit score influences what interest rate you will receive? Sometimes a low credit score may even prevent the ability to receive a mortgage. One of the first things your Mortgage Loan Originator should do is pull a full credit report and review it with you in detail.
Don’t worry, credit reports and credit scores can be confusing, and you should expect expert advice if you need it. There are many quick tips and tricks to help boost credit scores as well as long term strategies. You should be made aware of what credit scores are needed for a mortgage loan and how higher scores may benefit your interest rate.
In addition, your Mortgage Loan Originator should review the credit report with you to confirm accurate information is being reported. Make sure there are no unknown credit accounts showing up on your report, the balances shown are accurate, and if there are any late payments documented. There are certain ways that errors need to be addressed and your Mortgage Loan Originator should know how to help.
Responsive and Available
Are you getting a quick response to your emails and phone calls? This is a good sign that you will be taken care of in a prompt and professional manner throughout the transaction. You should never be left with long delays, unanswered calls, or feeling like you are not a top priority.
Whether it is a phone call, email, or text message, you should know what is happening with your mortgage transaction. The loan process can be a lengthy and involve many different people from the mortgage company, so it is important that your Mortgage Loan Originator is not contributing to the delays.