Rates, Fees, and Reputation (Borrower’s Golden Rule)
“Don’t judge a loan by its interest rate alone.”
Borrower’s Golden Rule
Finding the right lender isn’t as simple as calling the company that posts the lowest rate on the Internet. True, the interest rate is an important piece to the puzzle, but it’s not the only criteria you should use in making the right choice for your specific loan needs.
Home-buyers should pay close attention to ALL the terms specific to a transaction
Terms to Watch
1 – RATES: Along with the percentage rate, find out what the annual percentage rate (APR) is. The APR is a combination of the interest rate, points, and other charges divided by the loan’s term to give an annualized rate. At times, other lenders will quote a low rate only to find out that the client must pay an exorbitant fee to buy down that rate.
2 – FEES: All fees are disclosed up-front in the transaction via the “Loan Estimate.” This gives the buyer a chance to compare their loan with other lenders to gauge whether or not they’re getting a good deal.
3 – REPUTATION: You will want a lender who is well established and who carries a good reputation throughout the real estate industry. Each loan makes a lasting impression on our reputation.
4 – SERVICE: Timely, efficient service is also a necessary component of the loan process. Whether communicating by an app, text, email, phone, or fax, pick a lender that can communicate the way you prefer.