Mortgage Shopping Do's and Don'ts

DO speak with an experienced well established loan officer who has been with their current company for a few years. Be cautious of someone who has just started in the mortgage industry or with someone that has been employed by numerous lenders in the past year or two. BEWARE THE SALES PERSON WHO USES THE PHRASE - "NO PROBLEM".

DO request a FREE Good Faith Estimate before paying any fees to a lender. Good Faith Estimates are a Federal requirement when you have applied for a mortgage loan. Be cautious of a lender that makes it difficult for you to see their fees in writing unless you are willing to pay an application fee.

DO shop around for a mortgage. Don't be fooled by the so called in house mortgage companies. They are either owned by the real estate company or they are paying a desk rental fee to the Real Estate company so they can receive the names and information regarding every propestive buyer that walks through their door. Keep in mind that if it costs more to operate a business we the consumer will somehow pay a portion of that higher cost with higher fees. When shopping for a mortgage lender offer the same exact information to each lender or loan officer. Do not waiver, be exact. Write a list of questions prior to calling on three separate sheets of paper for three different lenders. Leave room for notes. Request via fax or email a Free Good Faith Estimate that is signed from each lender.

DON' T have more than one credit report pulled.

DON’T start looking at homes without having a Pre-Approval for a mortgage loan.

DON’T let your realtor or builder decide where you are going to obtain financing.

DON’T make major changes to your Financial and/or Employment status right before or right after applying for your mortgage.

DON’T misrepresent your financial situation. In the process of qualifying for a loan amount a Lender will find out the facts. Misrepresenting the facts will only waste time and damage any relationship you may have with the lender. Lenders do not make money if they decline loan applications. Unless they require application fees prior to supplying you with the information you request.