How To Shop For A Mortgage

Shopping for a mortgage in Delaware or any state can be daunting process. There are many questions, forms, and people involved. If you are a first time home buyer you may have even more questions. Below is a list of tips you can use when shopping for your next or first mortgage.

• Get recommendations from people you trust... friends, your Realtor, your attorney, colleagues.
  
  
• Find out if the company has a good track record. How long have they been in business?
  
  
• Look for "competitive" interest rates. Watch rates for several weeks to see who is consistently competitive rather than in and out of the market.
  
  
• Know the total fees being charged. The rate may be lower, but it's no bargain if the fees are so high they offset the interest rate savings.
  
  
• If an interest rate seems too good to be true... it probably is! Find out if you are paying for that great rate in extra points and/or fees.
  
  
• Be careful of "bait and switch." A company advertises one rate, but when you go to apply, it's another, or they talk you into another program completely.
  
  
• Have the mortgage company pre-approve or pre-qualify you. Make sure they send you a Good Faith Estimate of closing costs.
  
  
• Find out how and where your loan will be processed. Many companies simply send your file to a processing center. If you like personal service, look for local processing and underwriting.
  
  
• Find a Loan Officer and staff that returns your phone calls promptly.
  
  
• The mortgage process can be complex. You need a Loan Officer with experience, patience and understanding. Make sure you are comfortable. After all, you're the customer!