When obtaining a home loan, you’ll receive two important documents from your lender: a loan estimate and a closing disclosure. On the surface, these documents are very similar, but they both serve different purposes. Here’s what you need to know about the differences between these two forms and what each means for you:
How to Choose a Lee’s Summit Mortgage Company
Choosing a reputable Lee’s Summit mortgage company can prove to be a challenging task. Many people make the mistake of searching for the “best deal”, instead of the most qualified expert to guide them through the home loan process. Finding a great mortgage lender is critical to the success of your purchase. Below are useful tips to help you find the right Lee’s Summit mortgage company for you.
Do your homework
A knowledgeable mortgage professional can help you set goals and secure a loan that is appropriate for your needs. However, it is up to you as the borrower to decide what type of loan you need to secure your home. Before you can even think about choosing a lender to work with, you must first determine what their financial plan is and how you would like it executed.
- Make sure they have the loan programs you are interested in.
- Be aware of which data is relevant when you are comparing loan offers.
- Assemble a list of what to do and what not to do from information gained through others’ personal situations.
- Once you’ve selected a loan program, get referrals from friends who have recently bought homes.
- Experienced real estate agents can also refer borrowers to companies they have worked with in the past.
Find someone you can trust
Mortgage lending should be a collaborative activity for the loan officer and borrower. Your professional should also use a consultative approach to steer you through your home-buying journey.
- Find a mortgage banker who will agree to set expectations upfront, such as how long it will take to process the loan, and how often you will communicate and by what means.
- Interviewing is a good tool for narrowing down any potential candidates. Your first impressions will help you in the final analysis of choosing a Lee’s Summit mortgage company.
- Speak with lenders more than once if it’s necessary to understand and learn more about the company’s business practices.
- Work with a Lee’s Summit mortgage company that is locally owned and operated, so that your loan officer is more accessible.
Test their knowledge and abilities
Ask lenders the following questions to help you decide if you are satisfied with their skills, experience, and commitment to service. If you do not have confidence in the lender’s answers or you feel uncomfortable working with an individual, you should move on to another company.
- See if they can explain what each option means for you, without using mortgage jargon.
- Request a side-by-side comparison of their different loan programs.
- Do you offer conventional, FHA, VA or USDA loans?
- Will I be presented with a Good Faith Estimate immediately?
- Could you estimate closing costs for my loan?
- Can you explain your fees?
- How and when will you earn your income from this loan?
- Will you get approval for my loan locally?
- Are you certain my loan will close in time?
- How will you handle any last minute changes or unforeseen obstacles?
Don’t be deceived
Borrowers need a person that is focused on them, not just their loan. Some lenders are not trustworthy. Given the opportunity, they may make choices that benefit themselves, rather than the borrower. While loan officers are employees, they act more like independent contractors. Their salaries are largely based off of commission, which is typically 1% of the loan amount. Here are some ways to avoid being taken advantage of by a Lee’s Summit mortgage company.
- Make sure the loan officer is licensed locally and nationally. Each state has different requirements, so it’s critical to understand the extent of their training.
- Ask who will service your loan if it is sold, that way it is easier to track someone down later if issues arise.
- Good Faith Estimates are not set in stone. Make sure you are being charged the amount that was agreed upon at the beginning of the process.
- Check to see if they are a valid member of the Better Business Bureau and the local Chamber of Commerce.
If you are looking for a trustworthy Lee’s Summit mortgage company, call Cornerstone Mortgage, Inc. at: 816-525-9910 or complete their secure contact form. Their loan officers have an average of 15+ years of experience in the mortgage industry and are ready to help you today.The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.