First-Time Home Buyers
Finding the Right Lender
Below are answers to several questions about selecting the right lender.
Answer: Absolutely. The lender you choose can make all the difference in whether you get a mortgage, or whether you get the right mortgage and whether the process is easy or painful. Ask friends, relatives, co-workers and real estate professionals to recommend a mortgage provider who:
- Has significant experience helping first-time buyers.
- Offers a broad range of general and specialized loan types so there's likely to be one ideally suited to your needs.
- Is committed to service and building lasting relationships.
- Originates a high volume of loans so it can offer competitive rates and outstanding processing. In 2002, 1stAvenue Mortgage originated more than 100,000 loans totaling $23 billion.
- Has a nationwide presence, so it can continue to serve you if job or other opportunities take you elsewhere in the future.
Answer: Mortgage brokers offer loans from a variety of lenders, but don't manage the approval or closing process. Banks usually offer only their own mortgage loan products – which may be less attractively priced – but they manage the process from start to finish. Many first-time buyers find that a combined mortgage broker/banker gives them the best choices and service. For example, 1stAvenue Mortgage is a broker whose large volume and national presence allow it to access the best possible products and rates from more than 150 lenders. Yet we also offer our own competitively priced mortgage products and retain complete control over underwriting and closing, which allows us to provide faster approvals and lower fees. So you benefit by being able to choose among the very best in product choices, rates, service and fees.
Answer: Not necessarily. In fact, first-time borrowers who chase the lowest rate regardless of other considerations often have some unpleasant experiences. For example, you may pursue a particularly low rate loan only to learn weeks later that you aren't eligible for it; reduced staffing at some lenders may lead to “dropping the ball” on important details and paperwork associated with your loan; or a person who is unfamiliar with your specific needs might not properly respond to your questions. For your first mortgage – and later mortgages as well – it's best to shop for rate and service. At a resource like 1stAvenue Mortgage, you'll enjoy competitive rates and personalized service from an experienced mortgage consultant who knows you and your needs, and who is committed to managing all the details associated with your loan – so you don't have to.
Answer: A loan officer should be a valued advisor who helps make it possible for you to buy a home. I'll work with you to evaluate your financial circumstances and needs, and recommend a variety of loans to address them. I'll advise you on fees and costs, as well as choosing between various loans. I'll review the documentation you provide to ensure that it's complete. I'll supervise the appraisal and application review process, and preparation of documents for closing, which I'll schedule. In addition, I help you understand the documents before closing, and throughout the process, I'll respond promptly to your questions or concerns.
Answer: It's a good idea to “shop” a bit before selecting a loan officer. Start by asking friends, co-workers and family members who they recommend. Many loan officers have Web sites that provide information about their experience. It's also a good idea to ask these important questions:
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“How long have you been in the mortgage business?” An experienced loan officer can be especially valuable to first-time buyers.
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“How many new buyers do you work with?” Ideally, you want a loan officer who understands first-time buyers' concerns and enjoys helping them buy homes.
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“How quickly do you respond to questions?” A loan officer should return calls and e-mails within 24 hours.
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“Do you offer FHA loans?” FHA loans are guaranteed by the government and are ideal for many new buyers, so it's important that your loan officer can offer them if appropriate.
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“How much of your activity comes from repeat clients or referrals?” A loan officer who provides good counsel and service will have a high volume of repeat and referral business.
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