Why You Need to Shop for a Loan Officer: San Diego Home Loans

Why You Need to Shop for a Loan Officer

You need to shop for a Loan Officer, because shopping for interest rates is NOT the only consideration in getting a good home loan.

Interview the loan officer and grade him on his answers.

Shopping for a loan officer WILL make a difference.

DO’s

• Does the loan officer talk to you in English or industry jargon

• Does the loan officer seem to be pushing you in a certain direction

• Does the loan officer answer your question about fees and closing costs honestly and thoroughly

• Do ask which lenders the loan officer can use
  

• Does the loan officer allow calls after 5:00 pm and weekends

DONT’s

• Don’t select a loan officer only because he is a friend or relative

• Don’t assume you’re getting the lowest interest rate from your bank
  

• Don’t go in blindly, thereby giving the loan officer a down payment on his next Mercedes

Questions for the Loan Officer

• Are you licensed by the state

• Who do you represent (bank, broker, finance company)

• How does a mortgage broker work, and what are the benefits

• If they’re a mortgage broker, ask which lenders they use

• What loan programs do you have (VA, FHA, Conventional, Investment)

• Are you familiar with buyer assistance program (Good Neighbor, Down Payment Assist, etc.)

Questions for the Online Loan Officer

• Is there someone I can talk to when I need to
• How are you keeping my info secure
• Do you sell my information

Questions about the Loan

• How do you know this is the best rate
  

• Will the rate ever change, and if so, when and by how much

• When will you lock in my rate, and how much does that cost me

• What is included in my payment, and am I paying PMI

• What is a Yield Spread Premium and am I going to get a higher rate because of it

• Is there a prepayment penalty

• What costs will I have to pay up-front