Buying a home is one of the biggest financial decisions you’ll ever make, and finding the right mortgage lender can make all the difference. We sat down with Mary Greenwood, a seasoned mortgage professional, to answer the most important questions you should ask before securing a loan.
Availability, communication, and trust. You want to make sure that your lender is available, day or night, Monday through Friday and weekends too! When you’re out shopping for homes, they need to be at the ready to run figures for you and send pre-approval letters. A great lender also excels at communicating important information to you in a way that’s easy to understand, and not use jargon that isn’t in their borrower’s day-to-day vocab. Finally, your lender should be someone that you trust to have your best interests at heart. A referral from a friend or family member is a great place to start!
Buyers can research the National Multi-State Licensing System registry at www.nmlsconsumeraccess.org. Here, you can search by name or NMLS number to verify that your lender has passed a rigorous training and testing process, and are up to date with their education requirements. Prospective borrowers can also find out if there has been any disciplinary action taken against them, how long they’ve been licensed, and what states they’re licensed to operate in.
Great question! There are A LOT of great programs out there for first-time homebuyers, our nation’s veterans, borrowers with credit challenges, borrowers looking to build wealth with rental properties, and those that need down payment assistance. NFM Lending offers the resources and products our community needs to realize their dream of homeownership. Our lending team is well-versed in all loan products and can tailor solutions to fit our borrower’s needs. We’ll spend time discovering their goals, overcoming obstacles, and coach them on the best ways to get the best products available.
You’re so right! When we think of getting a good loan, we always want to try and get the best interest rate to save the most money. Most of the time, rates are “risk-based”, which means the rate depends on certain factors of risk, such as credit, loan-to-value (how much is one borrowing vs. the value of the collateral), the length of the loan term, and the purpose of the loan (i.e. is this to buy a new primary residence, rental, is it a cash-out refinance?). Our lending team can help buyers determine what rate they’d qualify for now, and counsel them on factors they might be able to improve to secure a lower rate in the future.
The pre-approval process with our team is straight-forward and fairly quick! When we meet with a new borrower, we’ll sit down and discuss goals, comfortable payments, and what amount they may qualify for. We can offer suggestions on how to qualify for more if their current amount doesn’t quite fit what they’re looking for. We also have access to many loan products that allow for more flexibility than a traditional lender, so the opportunities are endless.
After a loan is pre-approved, we’ll collect important documentation that will confirm the information reflected on the loan application. This could include paystubs, W2s, tax returns, bank statements and other items that are specific to certain situations. The underwriting team then reviews the loan application and documents to ensure what we’ve provided meets the guidelines of the loan product’s parameters. If they have any questions, or need additional documentation before approving, they’ll let us know and we request that from the borrower. Time is of the essence when we go through the underwriting process, so it’s important to be keeping up on calls, texts and emails asking for additional documents. After the loan is through underwriting, we are on to closing! The closing team will touch base with the title company or attorney who is facilitating the closing to make sure our numbers all line up. Once reconciled, our team sends the borrower a final Closing Disclosure, which is almost identical in format to the Loan Estimate received earlier in the process. This way, it’s easier to determine what numbers have changed, and how much is needed to bring to the closing table.
Yes, borrowers can lock in a rate, and NFM offers locking options even before our buyer goes under contract. It’s a great deal and helps borrowers plan for the future with greater accuracy and comfort.
After closing, lenders generally sell the servicing of the loan to other investors. During the transfer process, the loan terms stay exactly the same (interest rate, loan term, principal and interest payment) so there will be no surprises when the new servicer reaches out.
I highly recommend meeting with 2-3 real estate agents to interview them. Ask them about their availability, their experience in different markets, how many transactions they’ve successfully closed, and why they’re in this crazy business! You’ll be able to tell a lot from their answers, and about their personality. With such a big transaction, you’ll want someone who is a match in all the ways that count. If buyers ever need a great referral for an agent, I’ve been in the business since 2011 and I know very professional, hard-working, and dedicated agents I can connect them to.
Finding the right mortgage lender can make the home-buying process smooth and stress-free. If you’re ready to take the next step, schedule a consultation with NFM Lending today!