Mortgage Tips When You Shop For A Loan

If you are in the market for a mortgage or are refinancing your home, please follow these tips:

• Take the time to compare rates and terms. The finance industry is very competitive with significant choice available. Be wary of a company that is offering rates significantly lower than its competitors.
• Confirm that your mortgage lender and broker are licensed. Both lenders and brokers must be licensed in most states. Verify that lenders and/or brokers are licensed by visiting the local state authority sites.
• Get your rate lock commitment in writing. If you choose to lock an interest rate, ensure that the rate lock commitment is in writing and that you retain a copy of the commitment. Ask whether the commitment is from the actual underwriting lender. Do not accept a rate lock commitment from a broker.
• Verify that your rate lock commitment is from the lender, bank, or credit union. Remember that only lenders, banks, and credit unions are authorized to issue rate lock commitments. Brokers are not allowed to issue rate lock commitments. A broker, however, can obtain/arrange a rate lock in writing from the actual underwriting lender. Ask your mortgage broker to provide you with a copy of the rate lock commitment from the underwriting lender.
• Provide all documentation to your lender or broker in a timely fashion. Throughout the mortgage application process, provide all required documentation to your lender or broker in a timely fashion and well before the rate lock expires.
• Contact your lender or broker often throughout the Loan application process. Call your lender or broker regularly during the loan application process to verify that the transaction is progressing smoothly.

Questions and Answers on Mortgage Loans
You may want to call or email us with any mortgage questions you may have at (616) 301-1811, RBailey@Inter-Lake-Lending.com

What Is A Mortgage?
A lien that makes property security for the repayment of debt. A Mortgage can finance the acquisition of real estate such as a home. A mortgage has certain benefits compared to other debt instruments such as possibly lower interest rates, less financing restrictions, and long maturity period.

What Is A (LTV) Loan-To-Value?
Percentage of the Mortgage Loan Principal to the property's appraised value or sales price. For example, on a $200,000 house, with a mortgage loan principal of $160,000 the ratio is 80% (LTV ratio). Loan with less than 20% equity may require PMI or a Second Mortgage Loan.

How Large Of A Down Payment Do I Need?
There are loan programs now available that only require a down payment of 3% or less of the purchase price. Larger the down payment, the less you have to borrow, and the more equity you'll have.