Tips for selecting the right lender and managing your loan application

 
  • Before shopping for a lender, know your credit
    score and how much you wish to spend on a monthly
    mortgage payment. If your credit score is above
    680, you should qualify for an “A”
    paper mortgage. Scores in the range of 620-680
    will still allow you to negotiate for a good
    rate.
  • Consider talking with at least two lenders.
    Lenders highly recommended by friends and/or
    family are a good source, as well as lenders
    professionally affiliated with organizations like
    CMLA and the Better Business Bureau.
  • Compare Good Faith Estimates. Specifically,
    review the estimated closing costs each lender
    has provided.
  • Understand any fees that must be paid up front.
    Understand the terms for locking in an interest
    rate.
  • During the application, check periodically with
    the lender to monitor progress.

If you are purchasing a home:

  • Understand your real estate contract and deadline
    dates for the loan commitment, appraisal,
    inspection, and closing.
  • Discuss locking in an interest rate; inquire
    about any fees.
  • Know what your seller is providing towards
    closing costs, if any.
  • Review your HUD Settlement document within 24
    hours of closing to ensure that any fees and
    other issues are addressed prior to the actual
    closing    .

If you are refinancing your
current mortgage:

  • Review your appraisal prior to closing to ensure
    the value isn't too high compared to other
    properties.
  • Know that you have a three-day rescission period
    after the closing to review your closing
    documents and to decide if you wish to keep the
    loan or to turn it down. If the lender
    “promises” to change some items on the
    closing documents, make sure any changes are
    done in writing prior to the end of the
    rescission period    .
  • Review your HUD Settlement document within 24
    hours of the closing. Make sure that all
    financial terms of the mortgage agreed upon are
    posted on the settlement document along with
    other closing documents.

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