1. You will need either a mortgage lender or a mortgage broker. A mortgage lender is the company that provides the funding for your purchase of real estate. These are usually banks or credit unions. A mortgage broker is the person between you the borrower and the mortgage lender. The broker tries to get you the best mortgage and rate.
2. Research mortgage brokers and lenders online. Google different companies and look at the reviews. Look at websites and testimonials. You can look for mortgage brokers and lenders on Facebook, Google Business, Yelp, Better Business Bureau, Trust Pilot, and Zillow. These are websites which will give you reviews from previous customers.
3. Loan Shop – Different lenders and brokers offer different products. Some offer FHA loans, some do not, some offer rural loans, some do not, some offer first time home buyer programs, some do not, some offer 1% down, some do not.
These are some of the fees you will have to pay your mortgage company, before or at closing:
Appraisal Fee: The broker or lender will send a license appraiser to the property that you are purchasing. He or she will assess the property, review market conditions and prepare a report. The appraiser wants to make sure the property is worth the price that you and the seller agreed upon. If your negotiated price is too high, the price will have to be renegotiated.
Rate Lock Fee: This the fee that some lenders charge borrowers to lock in an interest rate. If the interest rates go up the borrower is protected from a higher rate because they locked in a rate.
Application Fee: This fee is to cover the cost of credit reports and processing the application.
Origination Fee: Mortgage brokers charge this fee, lenders do not. This pays the broker for looking for the best loan for you.
Processing fee: This covers the cost of processing the loan. This is charged by brokers who contract a third company to process your loan.
Underwriting Fee: This is an administrative fee to cover the cost of closing and funding your loan.
This blog is written by Real Estate By Jane: We are able to help people who have credit issues find their dream homes. We are home buying/credit specialists who know how to successfully help people who have been pushed out of the housing market by job layoffs, divorce, medical illness, etc. become home owners again. We also work with first time home buyers and single parents to create wealth by investing in real estate. To inquire about our services, please call 703-606-7963.