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How do you find the right mortgage loan officer?
How do you find the right mortgage loan officer? Finding the right mortgage loan officer is more difficult than finding a real estate agent! A real estate agent has a track record in MRIS that can be checked. Loan officers have no records at all. Buying a home is the largest, single purchase in your life. You have to know what you are doing.
Q & A
Question 1: Why should I use broker when a broker will turn around and send my loan application to banks?
You can apply and receive a loan from most local banks, such as Citibank and Bank of America, etc, but you will get retail rate just as broker offers price. Brokers get wholesale rates (or discount rate) because they make the loans more efficient for the banks. By going through a broker, banks can save money on overhead, like employee salaries, benifits, and office space.
Question 2. Why don’t brokers offer the same low rates as shown on some Internet sites?
Customers see very low rates advertised on-line, in newspapers, or by direct mailings. Those are simply advertisements trying to get you to call. Every customer is unique, each loan is different. Each client has varying financial conditions (credit scores, incomes, down payments, etc) and is searching for a certain type of property. In addition, the market determines the base loan rate, there is always a time gap between publishing rate and lock rate,
Question 3. What difference between quoted Rate and Locked Rate
A quoted rate is an offer (quote) of an interest rate at the moment you are talking with a loan officer. She or he can lock in that rate if your financial conditions are organized, accurate, and within the required guidelines. A locked rate is a interest rate a loan officer has contracted with bank or lender. Quoted rate can be gone within few minutes if loan officer does not lock rate for you. if market is stable, you may get the same rate as quote, if market volatile, you may get higer or lower rate as you got quote.
Tips to shopping mortgage loans:
1. Ask your friends and family for a referral (but it is not a guarantee of a good deal).
2. Shop for a mortgage by yourself.
3. One-stop shopping (mortgage, realtor, and closing company) is not usually good for you.
4. Check mortgage broker’s web sites, and loan officer’s email addresses! If the loan officer uses yahoo, email, or a hotmail, you should ask yourself how safe will your personal and financial information be?
5. The Myth of Good Faith Estimate (GFE) and Annual Percent Rate (APR)
Good Faith Estimate: clients never understand that most loan officers are unable to get a very good GFE because there are so many fees they can’t control. Most loans are done by processors, title Companies, banks, and counties have different fees and taxes; GFE is required to disclose by law, but NOT accuracy binding. Some loan officers will miss items in GFE to get your business. APR is calculated by rate, loan amount, and lending costs (third party costs are not included). The lower the APR, the better deal you will get. Comparing two different GFE is somewhat like comparing apples with peaches.
6. Use your brain not your emotions!! Do not base your decision by looking at their offices sit, cars they drive, or how way they look, or how sweet they talk. They are trying to get your business. All of us like nice people, and nice things, that is why you thought photos on ad are much younger and better looking too.
Conclusion
If you see ad or quote rate is far low from others, you should realize that if sounds too good to be true, then it is not true.
There are so many misleading ad everywhere, on internet, in newspaper, on radio, on roadsides, etc, please read following article;
http://realtytimes.com/rtcpages/20070716_directplea.htm
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