What Questions Should You Ask A Creditor?
Last week we discussed how important it is to SHOP around, and speak to multiple creditors in order to get the best rate on your mortgage; this week, we want to tell you what questions to ask! When speaking to a creditor, one important piece of advise is to ask the SAME questions to each creditor, and if they "dance" around the answers, there's your red flag.
Here are your top 3 questions to ask a creditor when you're shopping for a mortgage:
1. Do you or your company pay the agent or their company any fees on a monthly or yearly basis for the opportunity to quote my loan? If yes, how much?
2. First tell them what "TYPE" of loan and down payment amount you need... then ask, what is your current rate I could lock in today for 60 days with ZERO origination fee and ZERO discount points or fees. Make them answer the ZERO and ZERO question. That percentage rate is the BOTTOM LINE. You have just eliminated all the smoke and mirrors and know who is most competitive and wants your business.
3. Will you completely process and Pre-Approve my loan for me BEFORE I have found a home I like? If the answer is no or they go back and forth explaining why they can't or don't then consider finding another lender. A 5-15 minute phone call to your credit union is not a reliable negotiation tool to write an offer. That seller will want some surety your loan is secure and your loan officer is experienced and able to close on time. A "Maybe" is not good enough in most cases.