We recently sat down with direct lending expert Adam Klayman of ResMac Mortgage in Ponte Vedra Beach, FL (32082). See what he suggests you ask your lender below...
1. ARE YOU LOCAL?
You should always choose a local lender. Local lenders are familiar with the local lending environment. They are around to meet with if any problems occur and they have a vested interest in making sure you are taken care of because they are part of the community. In addition, local lending assures more efficient processing which will leave you with fewer headaches during the loan process.
2. HOW MANY YEARS OF EXPERIENCE DOES YOUR LOAN OFFICER AND THEIR PROCESSOR HAVE?
With the economy crashing in 2008, the lending landscape has changed. It is more difficult to get approved these days with many more guidelines and paperwork involved. A loan officer and processor with experience can help guide you through the maze and make the process smoother.
3. IS YOUR MORTGAGE COMPANY A DIRECT LENDER OR BROKER?
A broker arranges loans for their customers usually with a fee attached for their services. Although they might have the opportunity to shop your rate, the lending landscape has limited that recently. A broker cannot approve your loan and has to rely on an outside lender to do so. This can result in delays and or inefficiencies in the process. A direct lender loans you the money, and as such can approve you and close you in house. This is the way you want to go. You will probably save money and the process will be quicker and less painless.
4. WHAT ARE THE LENDER FEES?
All lenders charge fees. It is a cost of doing business. Sometimes they are called “junk fees” When shopping for a mortgage, do not get caught up in rate alone. A rate is a function of closing costs. The lower the rate the higher the costs. In this new mortgage world, lenders call their fees many different names which make comparison troublesome. Even the APR( Annual Percentage Rate) which is supposed to help doesn’t always since it might not be calculated properly by inexperienced loan officers.
5. WHAT IS MY RATE, CASH I NEED TO BRING TO CLOSING AND MY PAYMENT?
When shopping as described above, these 3 things matter the most. With this information you will not have to try and compare each lenders apples to oranges. The rate is self-explanatory, the cash to close is what you are paying, it won’t matter what each fee is called, and the total is what counts. The payment should reflect the rate quoted plus any taxes, insurance and PMI with applicable. Pay close attention to the principal and interest portion, the other fees can change per lender and skew the payment.
MORE ABOUT AUTHOR
Adam Klayman is the Branch Manager for Resmac Mortgage in Ponte Vedra Florida. He has over 25 years lending experience and can be reached at (904) 728-4850 or firstname.lastname@example.org