Local Money or Internet Money? That is the Question

mortgage lendersLenders are a dime a dozen. Making a Lender selection can be a bit daunting. You want someone who will understand your needs as a buyer and present you with the best loan product.

Being able to sit in front of someone and have face-to-face contact is a huge advantage. It’s hard to con someone in person. Trying to make a loan decision from a website or phone call makes the process more difficult.

Seek to do business with a full-time loan professional whose specialty is residential loans in your area. They should know about local lender conditions, values and common practices. They should also know about any state or government programs available to you.

Weeding through the potential loan programs is tedious. It will benefit you to find a loan officer who has experience with unusual or difficult transactions even if yours is simple. Think about being prepared.

To that end, here are some questions that might help you to select the right loan officer.

  1. What percentage of your loans are conventional mortgages compared to FHA and VA and how long have you been in business?
  2. According to the sales contracts, what percentage of your loans close within the original timeframe?
  3. Will my interest rate be affected by my credit score?
  4. Regardless of the commission you are getting, will you help me select the best loan product for my situation?
  5. Do any of the loans we are considering have prepayment penalties?
  6. Do any of the loans we are considering have any restrictions on refinancing?
  7. What timeframe do we have to lock-in the rate? Will we be charged a fee for that?
  8. Do you handle the loan underwriting in-house?

If you are ready to purchase a Fairfax homes for sale, I keep a list of trusted Lenders who work in the Northern Virginia area and are familiar with the loan products available. If you have any questions as to what kind of answers you should expect, please give me a call.

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