A Checklist for Choosing a Mortgage Company

For most of us, even if we have been involved in purchasing property or our homes before, the process of finding and approving a mortgage company is always something new for us. For the majority of us, we purchase a home seldom. We might buy a home every seven or eight years at the most. So naturally, you don’t retain the wisdom you used the last time you did it.

There are compelling reasons to look carefully at the mortgage bank or financial institution you will be using. This agency will own the note on your most important and precious possession, your home. Your home represents a huge investment in a number of different ways.

It is the center of your family life. It is “safe haven” for you when you come home from work and your children from school. It is the place where you house your possessions, private things and things of great value. The home has a special place in your emotional, spiritual and economic health.

It is the largest thing you have ever bought.

The equity of your home is a credit resource, an ongoing nest egg and a retirement vehicle.

It is a big tax advantage.

So let’s put together a list of crucial questions and topics you will want to be sure to cover when you are interviewing potential mortgage companies to become your partner in purchasing your home.

And Who Are You?

Just as your financial reputation is carefully scrutinized before you are given a loan, you should ask some pointed questions of each company that wishes to be the host of your loan.

How long have you been in business?

Give me some references and discuss your experience with mortgages.

Is your license up to date? Look for documentation and call the licensing agency to confirm.

Depend on people you trust to refer you to the stronger companies in your market. Your accountant, lawyer or business associates are excellent references to get your search for a mortgage company moving.

Tell Me Again Slowly

Make sure you understand every aspect, acronym and new term you hear. Even if you think you know what they are, make the agent earn his money and explain it to you. This accomplishes several objectives.

It shows he wants to help you. You want someone who is eager to please his customers

It shows he knows what he is talking about.

You learn the ropes or get a refresher course.

It gets you up to date to anything that might have changed since last time you went through this process.

In addition to terms, get a good understanding for the process. From signing the papers through inspections and to closing, you deserve to know everything you will go through, who are all these people that you have to work with and have to touch your mortgage? What is expected of you and others when the meetings come about?

Finally, understand where the money is going. You will have to pay up front fees. Some of those are refundable, others not. Make sure you know which are refundable and who is responsible for that refund, where you can reach them to follow up and when you should be expecting those funds back. Otherwise, that money could fall through the cracks.

Sweat the Details

In addition to the critical issues of the mortgage, there are questions of certification and the structure of authority both within the mortgage industry and in terms of state and federal regulatory agencies that you would do well to understand. Each of those organizations have input in terms of regulations into what you must do for this mortgage. Also, the mortgage company is answerable to those agencies. The more you know about them, the more you understand what drives the process.

In an age of diversification, your mortgage company may offer other services that might be of value to you. They might be able to help you if your credit is a problem or know of special deals or savings in the mortgage process as a result of state or federal grants or programs that would be of help to you. For example, if there are special grants because of disabilities, age or race. Your mortgage company could be a great friend to you both in smoothing the road to your mortgage and in making it an affordable experience as well.