Mortgage information and mortgage lender sources for the phoenix area! 10 questions to ask your lender. Helpful tips and explanation of loan terms.

MORTGAGE INFORMATION & MORTGAGE SOURCES

Interview a few Mortgage Lenders – I have a few suggestions below

This is an important first step. When it comes to buying a home, you may be ready and willing, but you must find out if you are able! You may be in for a big disappointment if you skip this step. I can tell you from experience that it’s no fun to go out and look at resale homes and brand new homes, fall in love with one, only to discover you are unable to afford a home in that price range!

Get a copy of your personal credit report. This can be obtained online or locally for a nominal fee (see the Yellow Pages under Credit Report). You can skip this step and let the Lender obtain it, but having it in your hand as you interview a couple Lenders, is a real advantage – especially when it comes to sharing personal financial information with someone you are not yet sure you are going to do business with!

Get pre-qualified. Choose a couple Lenders that you want to interview. Some Lenders charge a very small fee for this, but most do not – especially if you have your own credit report! Call each one and tell them…”Hi, I’m <your name>, and I am beginning the process of buying a home, and I would like to get pre-qualified”. Some Lenders will handle this over the phone and some will ask that you meet with them in person. In general you can expect the Lender will ask you questions about your income, your debts, and your assets. Be honest and accurate. Don’t be afraid to mention you are interviewing a few Lenders – they want to earn your business!

Pre-qualification is the step that determines;
a) how much down payment and closing cost money you will need
b) what interest rate options and loan programs are available
c) how much home you can afford
d) how much your monthly payments will be

Choose ONE Lender. After you have interviewed a couple Lenders, decide on one that you feel has the best to offer, and that you are most comfortable with.

10 Questions to Ask Your Lender

Be sure you find a loan that fits your needs with these comprehensive questions.

1. What are the most popular mortgage loans you make? Why?
2. Which type of mortgage plan do you think would best for us? Why?
3. Are your rates, terms, fees, and closing costs negotiable?
4. Will I have to buy private mortgage insurance? If so how much will it cost and how long will it be required? NOTE: Private mortgage insurance is usually required if you make less than a 20-percent downpayment, but most lenders will let you discontinue the policy when you’ve acquired a certain amount of equity by paying down the loan.
5. Who will service the loan? Your bank or another company?
6. What escrow requirements do you have?
7. How long is your loan lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if they drop during this period?
8. How long will the loan approval process take?
9. How long will it take to close the loan?
10. Are there any charges or penalties for prepaying the loan?

Used with permission from Real Estate Checklists & Systems, www.realestatechecklists.com.

Common Closing Costs for Buyers

The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier’s check. The title company or other entity conducting the closing will tell you the required amount for:

* Downpayment.
* Loan origination fee.
* Points, or loan discount fees you pay to receive a lower interest rate.
* Appraisal fee.
* Credit report.
* Private mortgage insurance premium.
* Insurance escrow for homeowners insurance, if being paid as part of the mortgage.
* Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
* Deed recording fees.
* Title insurance policy premiums.
* Survey.
* Inspection fees—building inspection, termites, etc.
* Notary fees.
* Prorations for your share of costs such as utility bills and property taxes.

A Note About Prorations and Prepaids. Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first 5 days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

What to Keep From Your Closing

* The Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 Settlement Statement, itemizes all the costs associated with the closing. You’ll need this statement for income tax purposes and when you sell the home.
* The Truth in Lending Statement summarizes the terms of your mortgage loan.
* The Deed of Trust spells out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
* The deed transfers ownership of the property to you.
* Affidavits if applicable.
* Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association’s rules and restrictions.
* Insurance policies provide a record and proof of your coverage.

A FEW MORTGAGE LENDERS FOR YOU TO CONSIDER

Coldwell Banker Home Loans - Candis Carroll 602-697-0232
candis.carroll@mortgagefamily.com

Express One Mortgage - Ben Allred 480-635-3084
ben.allred@eomc.com

ODowd & Associates Mortgage - Eddie Knoell (pronounced Kinell)
Toll Free: 888-809-4200
Office 602-677-3105
eddie@odowdmortgage.com

Countrywide Home Loans

ELoan.com

Moving here from another city or out of state? Did you know that in some cases you can use the services of a Mortgage Lender that is local to where you currently live? It's worth checking into, especially if you already have a good relationship with a local Mortgage Lender!

NOTE: Please email me at Kevin@KevinHanley.com to request Mortgage Lender contacts for mortgages greater than $1M.

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At some point in your moving plans it will be time to choose a Realtor. When that time comes, please consider the wisdom of choosing an experienced Buyers Agent. I sincerely hope you will consider contacting me for an informal no obligation interview. The interview can be done by phone, by email, or in person (my preference). Let's find out if we will work well together! Contact me today, and we can get the ball rolling!!

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Kevin A. Hanley - Coldwell Banker Chandler Arizona
Associate Broker at Coldwell Banker Residential Brokerage
1045 W. Queen Creek Rd., Chandler, AZ 85248

The information presented on this Web site is intended for the purpose of providing information and resources regarding the multi-faceted real estate market in the Phoenix Metropolitan Area, and is not intended for any other purposes. To that extent, by continued use of this site, the user affirms the understanding of its purpose, understands the importance of verifying pertinent information, and releases KEVIN A. HANLEY, REALTOR® from any claims arising out of his/her use. Kevin A. Hanley is a member of the NATIONAL ASSOCIATION OF REALTORS®. Coldwell Banker Residential Brokerage is owned and operated by NRT Incorporated.

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