Where Can You Get a Mortgage?
There are thousands of mortgage lenders across the country, each having many different loan
products. From lenders who will only sell to the most creditworthy borrowers (at the best
rates) to those who will lend 50% of a property's value (at high rates), there's a mortgage
product for just about everyone.
One place to check is your local bank. This can result in a reasonably good deal for the
qualified customer. In many other cases, the bank will not have a program that fits your
needs, or you may fall outside the guidelines of its lending ability.
Once you have visited your bank, look in the real estate section of your local paper for the
rates at other banks. It's a good idea to start the legwork on your own, before bringing in
a mortgage broker, so that you'll 1) avoid the hard sell from the get- go, and 2) have a
better idea of what you could find on your own.
The Web
Be sure to check Yahoo! Finance for the best rates in your area. With such sites, shopping for mortgage rates, finding a home or an agent, pre-qualifying,
and applying are right at your fingertips.
You may well find the cheapest rates in town (or in the country) from the Internet. If,
however, you end up working with a real estate agent, you may feel more secure with a lender
that has a relationship with your agent. The idea is this: The agent brings business to the
lender, and so the lender has some sense of responsibility toward honoring commitments with
that agent's clients. There are, to be sure, legal protections for you, but a hassle is a
hassle. This is not a reason to get a lousy deal, but, as Mr. Freud said, psychology counts.
(OK, maybe he didn't say that, but he should have.)
By the way, there is no reason why you shouldn't take out a loan with a bank in California
if you live in Virginia, or vice-versa.
When Should I Shop For a Mortgage?
Ideally, you should find a mortgage before you ever start looking for a house. Not only will
you feel more confident knowing that you'll have a certain amount of money, but you'll be a
more serious candidate to sellers.
What Information Should I Get From the Mortgage Company?
There are many questions to ask prospective lenders. You may find yourself feeling a little
nervous. After all, you may feel like they have you by the... suspenders. But don't think of
it that way. You are going to pay them a lot of money for a very long time. They serve you,
not the other way around. Don't let them take advantage of you or bully you into a deal that
isn't to your advantage.
See our worksheet for lenders.
Print it out and take it with you when you meet with a prospective lender.