The Pulse Of The Kansas City Real Estate Market
When buying a home in Kansas City, Johnson County KS, Overland Park or the surrounding area, the first thing you’ll need to do is get pre-approved with a local mortgage lender. The first mortgage loan question that I hear most buyers ask is, what are today’s interest rates? While a very good question, there’s many other factors you will want to consider when choosing your mortgage lender.
Before you have a lender run your credit report (so they can determine what your interest would be), ask the lender what the loan closing costs will be. While closing costs for any lender should included similar appraisal fees, escrow amounts, etc, the lender is in business to make money and some of the fees they charge are likely specific to the financial institution. This means they can vary from one lender to another, so be sure to ask for a breakdown of the closing costs so you can see how much the lender is charging you to make the loan.
Lender fees to look for could be labeled as loan origination fees, application fees, processing fees, underwriting fees, etc. Whatever it’s being called, the total amounts of such fees should be a reasonable amount. The best way to determine that you’re paying a fair rate is to start by getting a lender referral from a real estate agent like myself or from a trusted family member or friend. Another smart way to ensure you’re getting a fair shake is to shop more than one lender.
Prepare a few questions to ask your lender, such as… How long can you lock in the current interest rate? Do you qualify for an FHA and/or conventional loan? Will the lender help you get a lower interest rate later, if rates should drop in the mean time? How long is the lender’s turn-around time to complete the loan. We’ve seen some lenders requiring 40 days for closing because their underwriter’s are overwhelmed. If that’s the case, you’re better off going to a different lender because timeliness is critical in a real estate transaction.
Posted by Jason Brown