How To Shop

This is an overview of advice about how to shop for a mortgage. There are many things you need to know, and a few important things you should look for, and questions you should ask. If a lender or broker will not answer those questions for you, do not borrow through them.

A listing of articles covering the background of different loan types appears at left.

When you are shopping for a loan, there are a few very important questions to ask:

-What fees do your company and its subsidiaries make, for a total of how much?

-May I see the original invoices or price lists for any other fees I’m being charged?

-What is the par rate (the lowest rate you can get without a buy-down to the lender)?

-How much yield-spread or SRP do you usually build in? Do you always offer a rate with no back-end profit as an option?

-Is there some better way of using what money (or equity) I have to get my payment or my cash-at-close lower?