Financing in 46250>Question Details

Pat, Home Buyer in Indianapolis, IN

What should I be looking for in a mortgage lender?

Asked by Pat, Indianapolis, IN Mon Feb 4, 2008

I have just recently started looking for a home....I am getting ready to see someone about pre-qualification or pre-approval. I want to know what things should I be looking for in a mortgage lender?...Also, is 10% enough for a downpayment?

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Cindy Breneman’s answer
Pat,

When choosing a mortgage lender/broker make sure to compare all the costs you are going to incur and also compare the mortgage options that they have available to you. There are many options and programs that most home buyers are not aware of and lenders may not mention them to you. A good lender will have a wide variety of programs and options available to meet your specific needs. As for 10% down, it would depend on the type of financing you are getting. If you are going with a typical 30-year conventional mortgage with only 10% down you will probably be paying PMI which will increase your monthly payments. It can seem complicated, but a good real estate agent should be able to help you decide what would be the best program for you and would be happy to do so at no cost to you. If you have any other questions or would like to discuss some of the options that you might have available, please contact me.
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Longevity (10or more years) and a long list of happy customes.

10% is enough for an owner occupied home if you have decent credit and regular income.
0 votes Thank Flag Link Mon Feb 4, 2008
Always compare APR (annual percentage rate). That is your actual rate when you factor in all of the lending fees. Example, mortgage company #1 says they can get you 5.5% 30 yr fixed. Mortgage company #2 says they can get you 5.75% on a 30 yr fixed. Most people will go with mortgage company #1, right? However, you MUST factor in their closing costs.. Say mort co #1 is going to charge you $3,500 in closing costs & points, and mortgage co #2 is only charging $1,200, (without knowing your mort loan amount, I cannot figure out true APR, however, after factoring in closing costs, mort co #2, may only have an APR at 5.9% and mort co #1 has a 6.25% APR.) You would be better to go with the 5.75% mort co #2. Bottom line is to compare APR's and Good Faith Estimates.
As a professional REALTOR in the Indianapolis market, my team reviews these types of issues for our clients when buying a home. When purchasing a home, especially in this market, It is absolutely critical for buyers to use a professional, ethical and trustworthy real estate agent to represent their best interest. Keep in mind, it doesn't cost buyers anything to work with an agent. For more information or if you would like to discuss this further, please contact me at 317 846-4888 direct. Thank you! Derek Gutting, The Gutting Group of Keller Williams Realty.
Web Reference: http://www.GuttingGroup.com
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