How to get a mortgage quote you can trust. 

After many years of originating jumbo loans, we have compiled the following list of questions that should help you find your way through the mortgage process. Please feel free to contact us at any time if you have any questions while shopping for a mortgage. E-mail us at customerservice@thegreatloan.com or call -1-877-884-7328.

Ask yourself what is most important to you - rate or closing costs? Both are, but there is a direct relationship between the total cost (points/rebate) and the interest rate. You can usually ask for a higher rate with lower costs or a lower rate and higher costs. Every 1/8 (.125) in rate will cost or save you approximately 8.5 cents for every 1000 you borrow. That may not sound like much, but if you borrow 1,000,000, that is $29,016 over the life of the loan. If you are saving $3000 in closing costs, but you are paying .125 more in rate, it has cost you $26016 over the life of the loan.

Were your closing costs and rate quotes disclosed in writing?
Never accept a quote that someone is not prepared to give you in writing. Rate, points/rebate, closing costs, and lock-in term should be disclosed. A closing cost quote without a rate and point/rebate quote and vice versa is worthless! Someone may have the best closing costs in town, but their rates and points may surprise you.

Were all fees disclosed?
Once you have several quotes, take the time to compare all the costs. Each lender may have different fees and different names for the same fees. Take the time to carefully compare the fees. Items that may be missing are listed below:

• Origination Fee (If this fee does not appear, make sure that you will not have to pay this or a similar fee to a third party)
• Appraisal Fee (Typically paid upfront, but it is an actual cost and should be disclosed and compared.)
• Credit Report Fee (Typically paid upfront, but it is an actual cost and should be disclosed and compared.)
• Points/Rebate - DO compare these numbers. There is a direct relationship between discount points/rebate and the interest rate. If you ask for an increase or decrease in the points/rebate the interest rate should change also. The more points you pay the lower the interest rate should be, the larger the rebate the higher the interest rate should be.
• Other Fees - ASK SEVERAL TIMES - Will I be charged any other fees? Some online rate quoting services are shopping services and do not include the fee to the actual lender. Make sure there will not be any additional origination or referral fees.
• Escrows, Prepaid Interest and Homeowner's Insurance - These items will be the same no matter which lender you choose. The fees are based on the actual tax bill, your choice of insurance companies and your actual closing dates. Contact us and we will gladly estimate these items for you.

Always compare rates and costs on the same day at approximately the same time.
Usually the best time to check rates is after 11:00 am EST. This gives lenders time to watch the market and set their rates. When making your final decision, always reconfirm rates, points and closing costs with the lenders that had the best quote (and of course we will be one of them!). Market conditions change rapidly and what seemed like the best quote one day may not hold true if you are not comparing quotes from a different day or time.

When can I lock?
Will I get a written lock-in confirmation once the loan is locked? Are there any fees to lock in the loan? What is my lock-in term? Lock-in policies vary, make sure you will get a written confirmation, that the lock-in period covers your closing date, that you are comparing equal lock-in terms (30, 45, 60 days) when you get your rate quote.

What upfront fees are charged? When do they have to be paid?
Typically the only fees you will be charged upfront are the appraisal and credit report fees and must be paid at the time of loan application. Question any other fees that are required to be paid prior to closing.

What is the APR (Annual Percentage Rate) on the loan you were quoted? What fees were used to calculate that APR? Could your representative explain the APR?
This can be the most confusing part of shopping for a mortgage. Bottom line is that if there were no costs associated with the loan, the APR would be equal to the note rate. Every dollar that is charged to obtain the loan increases the APR, but the note rate stays the same. The problem is that the fees that are used to calculate the APR vary from lender to lender and fees paid to third parties (i.e., attorneys, appraisers, credit bureaus, title examiners) do not affect the APR. Because of these disparities, it is best to shop for your mortgage comparing total costs and note rate, not APR. DO ASK the questions listed above, but don't let this be your deciding factor. Asking questions about the APR will simply give you an idea of the experience of the representative you are dealing with.

Does the loan you are shopping for have a prepayment penalty, what are the terms of the prepayment?
Most loans do not have a prepayment penalty, but for various reasons some may carry one.

What is your approval process and how long does it take?
The answer to this question may vary significantly. Make sure that it fits your time frame for closing and that you are comfortable with the process. Obviously, the sooner the better!

When calling around or visiting websites, were your requests for information responded to promptly?
If you didn't receive the service you expect on the front end be cautious about the service you will receive during the loan process and most importantly, closing.

These are questions that should help you make a well-informed decision on your mortgage loan. Many of these questions come up after you have applied for your loan. These items should be addressed upfront.