If you are going to need a mortgage for your new Real Estate purchase or even a refinance, choosing the right lender is of paramount importance. If you don’t do your homework it could cost you thousands of dollars in additional loan fees and/or closing costs. Or if you don’t get a good interest rate you could pay more every month in extra interest expenses over the duration of your loan which will likely add up to thousands of dollars. We have sponsored this page to provide you with our "Lessons Learned" and a few insider tips on how to work with lenders before and after you commit to work with them.
Part of the Federal Truth in Lending Act of 1968 stipulates that lenders must provide borrowers with a "Closing Cost Estimate" (CCE) formerly call a "Good Faith Estimate" (GFE). On the CCE the lender must disclose the interest rate, the annual percentage rate (APR) and all of the estimated fees and costs that will be associated with your loan. Lenders are required by law to provide these to borrowers after they have pre-approved their loan but many loan shoppers don't know they can obtain a CCE or GFE Quote before deciding on a loan program or a lender.
Here are few things to do before you actually start shopping for a lender:
A Word of Caution... Most National Lenders (i.e. Quicken, Countrywide, Lending Tree, Ditech, etc) that you see on TV ads actually have some of the worst lending rates & fees that you will find in the marketplace most of the time, even if they tell you otherwise. It stands to reason, all of the advertising they have to pay for. Don't fall for their deceptive ads! And some won't even give you a rough rate quote until you give them your Social Security Number and fill out an application. THANKS, BUT NO THANKS!