Time to Get Quotes from Prospective Lenders
Ok, we’ve spent countless hours discussing your needs and wants for your dream home or condo. You have looked at dozens of listings that fit your criteria. We have spent several days together looking at those properties. We have researched prices, written offers, and negotiated “The Best Deal” for you.
Now what happens?
Unfortunately, in too many instances, I see buyer’s that have worked so hard to get the best deal only to give it all up with their financing. This is a shame considering that mortgages are the easiest component to negotiate. How do you keep this from happening to you? Follow a few simple rules:
1. Get at least 3 quotes. Every person has a “financial” profile. This includes your income, debt, assets, credit scores and other pertinent information. Your rate and the amount you qualify for is based on this profile. All mortgage companies are looking at the same information and for the most part trying to put you in the same types of programs.
2. Get quotes from lending institutions or mortgage brokers in the local area of your real estate purchase. Out of state lenders just do not have the experience dealing with investment properties, second homes, and vacation properties along the Emerald Coast. There are nuances with Florida Coastal Properties and you don’t want to lose your dream home because your local bank didn’t come through.
3. Make sure the quote includes, at a minimum; 1) A good Faith Estimate 2) The interest Rate 3)The Lenders Charges 4)Disclosure of any pre-payment penalties
The person that initially works with you on your loan will have little to do with the loan after closing. Customer service is important but if you choose reputable local companies, you will most likely be getting equivalent service from all of them.
When you call and ask for a quote, make sure to let each know that you will be soliciting quotes from them as well as two of their local competitors. This will insure that you get the best rates right out of the gate.
Many lenders, either intentionally or accidentally, underestimate insurances and taxes on the good faith estimate. This will make their quotes look better in comparison to more accurate estimates. The insurance and taxes are based on property valuations and in the end, will be the same regardless of the lender.
Let me know if you have any questions. I look at dozens of good faith estimates each year and can help you decipher each quote.