Skip to content

Shopping for a Mortgage

January 12, 2012

Even though mortgage rates change minute by minute, comparing interest rates and loan activation fees prior to committing to a lender can save the consumer thousands of dollars over the long term.  The right lender can also make the difference between being able to afford a loan and having to wait to purchase a property.

I urge all my buyers to spend a little time shopping for loans.  The key questions to ask include:

  • What is your current interest rate?
  • What additional charges are there for activating the mortgage?
  • What credit score is required to qualify for the preferred rate?
  • When is my credit pulled and how will that affect my credit score?
  • Is there any pre-payment penalty for paying extra or paying early?
  • What is the difference between a 15 and 30 year loan – monthly fee and interest rate?
  • What is the monthly payment and does that include property taxes?

Almost any lender can provide a pre-approval or pre-qualification letter.  These are often the best way to position yourself to be taken seriously by a seller.  When a buyer finds the house s/he wants, having a pre-approval letter assures the seller that you are able to complete the proposed transaction and increases the likelihood that your offer will be accepted.

When calling for a pre-approval letter, ask the key questions, but after you have begun to shop for homes, take some additional time to call other banks and lenders to compare rates.  If you need the names of reputable lenders, ask your Realtor or call me!

Patty Cunningham, Realtor®
Coldwell Banker Preferred
Exton, PA 19341
O.        610.363.6006
C.        610.659.4669
Lic #RS294054

Advertisements

Comments are closed.

%d bloggers like this: