January 24, 2014

Have you seen some low interest rates posted online or even been quoted rates from loan originators without actually applying for a loan? If so, read on for some helpful tips!

The main issue that I see and hear about from consumers who are getting rates quoted that appear to be much better than the average quoted rates is that the loans never seem to close. I've seen loans taking 4 or more months to complete and I believe that is just unacceptable, particularly when the borrower's were not informed of the long turn times for files to be completed once the full file was received.

I pride myself in communication on a regular basis which is determined for each individuals need for information. Also, being the Single Point of Contact on the loan file is something that is not common with most lenders, but with our company, you will be working with just me from the start to closing!

Here are some good questions to ask your prospective loan originator:

1) how long will the loan process take once all requested documents are submitted
2) how long are my financial documents and credit report good for
3) is my interest rate locked and if so, for how long
4) if my interest rate is not locked, at what point do I lock it and if the lock expires at any time, what is the process and/or penalty to re-lock the rate
5) will you as my loan officer be my single point of contact throughout the entire process and if so, how often will you provide communication with me as to the status of my loan
6) if you as my loan officer is not my single point of contact, who will I be working with and what functions will they be working on for my loan approval
7) are you a lender, broker, or both
8) do you charge an application fee and if so, what does it cover and is any portion of it refundable at anytime if I decide to cancel the loan application

These questions are not a complete list of what you should be asking and looking for in a loan originator, but it is a good start. As you get the replies to the questions you ask, you can certainly get a good sense as to the knowledge of the person who is replying. You should also be having some instincts guide you with how you should move forward. I'd suggest you trust your instincts and if you feel something isn't feeling right, just move on as there are plenty of qualified professionals in the business to seek out!

I wish you good luck in your financing endeavors!