Important Questions to Ask Your Lender
As mortgage lenders, we want to help as many people as we can. At the same time, we understand this is a competitive business, and it’s essential to shop around. After all, you need to work with a lender who can provide you with the right rate, and services that fit your lifestyle and budget. Sometimes that’s us, sometimes it’s someone else. And that’s okay.
Regardless, we want to make sure that, as you look for a lender to work with, you’re asking the right questions to help you narrow down your list of lenders to choose from. Here is a solid list to get you started …
Do You Offer Rate Locks?
Easily one of the more important questions to ask is whether a lender offers rate locks, and for how long. A rate lock is exactly what it sounds like: the lender locks in the interest rate you qualify for at the beginning of your home search. This is because most lenders know that the search can take longer than the interest rate will hold out. With your rate locked-in, it’s one less thing to worry about. This is our financial commitment to you, and yours to us, no matter the market movement. Guardian Mortgage proudly offers rate locks for up to 90 days, depending on the loan program. Make sure to discuss the full details with your mortgage loan originator to understand the lock and commitment.
What is Your Origination Fee? Any Additional Fees?
You’ll be hard-pressed to find a lender without fees associated with their loan program. One of the more common fees with a mortgage is the origination fee. Some lenders also include a variety of additional fees, depending on how they work. The amounts of these fees often vary in range, which is why it’s important to pay close attention to them, as they will add to the total amount you finance, or “closing costs.” At Guardian Mortgage, we do have origination fees, which vary based on the loan type and state the loan is in.
Can You Send Documents Electronically?
It’s no secret that the mortgage application process requires a lot of paperwork. Waiting on paperwork to be submitted and reviewed is often one of the biggest hold-ups in the process. This is why numerous lenders now offer the option to submit required documents electronically – a more seamless and efficient process for all parties that can help reduce a lot of stress through the process. Guardian Mortgage happily offers our customers the option to apply online, submit documents electronically, and eSign.
How Many Loan Types Do You Offer?
Some lenders try to specialize in specific types of loans, while others aim to offer a variety of many types. The type of lender you should work with will depend on your specific situation, but for the vast majority of buyers, a lender with a wide range of loan types is going to be the preferred choice. Lenders with numerous options offer the flexibility to find a loan that will meet your exact needs. Guardian Mortgage offers well over 50 loan types, meaning we likely have a program that’s perfect for you. Make sure you thoroughly explore the loan options with your mortgage loan originator. This will ensure you have the best loan choice for you.
Will You Sell My Loan?
This happens more often than you might think. A large number of mortgage lenders simply originate the loan and then sell them to other mortgage companies. While there’s nothing inherently wrong with this practice, especially if the customer knows it’s going to happen, many people still prefer to borrow from a lender who will also service their loan. Guardian Mortgage proudly services 98% of our loans.
Can You Purchase Mortgage Points?
Purchasing mortgage points is a way to spend more upfront in order to save on interest throughout the life of the loan. While this isn’t something many buyers do especially during times of historically low rates, it may be an important option to you. And Guardian Mortgage does offer the option to purchase points on most mortgages.
No Bad Questions
Buying a home and getting a mortgage is a significant achievement, often involving a complicated process dealing with a lot of information with which you’re most likely not familiar. So speak up: there’s really no such thing as a bad question at any point in the home buying and mortgage process.
At the end of the day, the more you know about the lender you choose to originate or service your mortgage, the better, and the above questions can help serve as a way to find out which lender is right for you. If you’d like help with answering these questions or more, a Guardian Mortgage Loan Originator is always ready to assist you.