The Advantage of Interest Only Mortgages

Mortgage Lenders
With all the mortgage brokers, online lenders and so many others who appear to be overly eager to take your loan application, for many homebuyers, it can be very challenging trying to find the right mortgage lender. Your goal is to find the mortgage lender who will provide you with the best deal as well as professional customer service.

Things to do
There are a several things you can do when you are looking for the right mortgage loan.

Interview several mortgage companies to learn what they are offering. After learning what each has to offer, continue to narrow down your choices and decide which of the mortgage lenders you believe will offer you the best deal and service for your home loan needs.

Stop by your personal bank or credit union and find out what types of mortgage deals they have available for their current customers.

Ask your friends and family members if they know of any mortgage lenders who have previously provided them with excellent deals and professional service.

Ten Questions to ask Mortgage Lenders
There are ten questions that homebuyers can ask to help them to decide on which mortgage lender is the right lender for them. The ten questions include the following:

1. What is the interest rate on this mortgage?

2. What is the origination and discount point structure? Mortgage lenders sometimes charge prepaid mortgage interest points for the purpose of lowering your interest rate, but there are also time when points are charged that have no benefit to you at all. Therefore, it’s important to find out how many points you would have to pay, how it benefits you and which points will they pay, if any?

3. What are the qualifying requirements for this loan?

4. What are my closing costs?

5. Will I receive a good faith estimate of all costs involved in the loan up front? Many experts advise against using a lender or broker who is reluctant to provide their customers with good faith estimates up front.

6. When can I lock in the interest rate, for how long and will it cost me to lock in my rate?
Sometimes interest rates fluctuate between the time you apply and closing. Locking in the rate and points for a precise time frame is a good idea.

7. Will there be a prepayment penalty on this loan and what does the penalty entail?

8. What is the down payment required for this loan?

9. What documents will I have to provide and how long will it take to process my loan application?

10. What might delay approval of my loan?

Asking these ten questions will help homebuyers to choose the right lender who will give them the best deal and service. Because you are not just buying a small item, but an expensive home and acquiring an expensive financial product for that matter (a mortgage loan), you should seek out the best service and the best deal for your investment. Therefore, having the right mortgage lender is vitally important.

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