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When you go shopping for a lender there are certain questions you must ask. Calling lenders and getting their rates is not good enough. You will probably end up with a great salesperson and possibly not end up with the best loan package for you.

Relatives and friends can be a good source for a referral. If you have a Realtor you trust, ask them too. But make sure you also ask why they prefer this particular lender over others? If you ask around a bit, you’ll probably get several recommendations. Obviously you can’t work with all of them, but it’s a good place to start, since you can interview them and let them compete for your business. You will need to narrow down the selection and find a mortgage broker/lender with which you feel comfortable.

Here are some good questions to ask them: * How long has the person been in the industry and what types of products does their company offer? * How to they determine the interest rate and what rates are currently being offered? * If rates fall, can you break out of your lock? * Will they guarantee closing costs? * Are they interested in your particular financial situation and goals or just closing the deal? A reputable lender will try to find out all about you before they start talking particular loan packages. * Will the lender continue to service your loan over it’s life or will they sell if off to another company? * Are there any prepayment penalties? If there are, what are they and when do they kick in? * How much are the loan origination fees and discount points? * Do they approve their own loans in-house?

Shopping online for home loans is a good idea. Just be aware that some sites that say they offer one-stop loan shopping have earned a reputation of using bait and switch with interest rates and or fees. It can be time consuming to research several lenders, but it’s well worth the time you’ll invest if you can find the best loan package for you. Watch for sites that ask for your Social Security number up front. Some of them ask for this information so they can pull your credit report. If many of them do that, your credit score will suffer. It’s a good idea to wait until you have selected a lender, or at least narrowed it down to two or three, before you let them get a credit report.

Once you’ve chosen a lender, go through the steps to get pre-approved. Preapproval can actually make the home shopping experience much more enjoyable and less stressful since you will: * Save time and frustration by looking only at homes that are in your price range * Take more time to examine the homes you are looking at. You will have more time to determine if that garage is really large enough or if the yard is big enough for your dog and your kids to enjoy. * Skip the frustration of shopping above your price range, having your heart set on a home, only to find out that you can’t qualify for the loan after all. * You can negotiate the price knowing that you have the loan in place * Your escrow will be shorter.

A home purchase is probably the single largest purchase you will make. Since very few people can pay cash for a home, the financing is a major factor of this purchase. This makes it critical to find the best lender and loan package for your financial situation. It will take some legwork and research on your part, but it’s absolutely essential if you want to get the most for your money.

Find a home mortgage loan that fits your needs and then go shopping! Start with these beautiful San Diego new homes.

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