How do you mortgage shop?

I'm looking to re-finance several investment properties and need to know what kind of questions to ask the lender.

I don't understand some of the lingo, either. What are points?

I plan to ask each lender about their closing costs. Is that the same as points?

I am a licensed mortgage banker in 46 states. Do not go to lending tree!!!! All that company does is SELL your information to brokers - repeatedly. You will get all sorts of phone calls from that ONE form.
A better approach would be to contact a broker in your area, or you could contact me. Either way - you will want to compare several items.
1. Points (are charged to reduce the interest rate) are tax deductible and are equal to 1% of the loan amount. Ex. 100,000 loan with 1 point - costs you 1,000
2. Origination Fees - this is a fee charged by the lender, again an origination point is 1% of the loan amount.
3. All other fees - such as appraisal fee, underwriting fee, processing fee etc. All of your fees should be on a form called the GFE (Good Faith Estimate) This should be supplied by the mortgage professional along with a TIL (Truth In Lending) form. This actually illustrates ALL fees combined with your interest rate - to make loan comparison easier. But keep in mind the TIL interest rate is for comparison and IS NOT the rate for the loan.
4. Check with the BBB to be sure the broker has no complaints
5. DO NOT ALLOW multiple brokers to pull your credit. This will lower your credit score. But in order to get a quote, usually the broker will want to run your credit profile. My suggestion, only deal with professionals that will quote a rate based on your verbal score and move forward if you like the terms.

http://www.rbccentura.com/personal/mortg...
(800) 294-0011 if you have further questions.

Shopping around for a home loan or mortgage will help you to get the best financing deal. A mortgage--whether it鈥檚 a home purchase, a refinancing, or a home equity loan--is a product, just like a car, so the price and terms may be negotiable. You鈥檒l want to compare all the costs involved in obtaining a mortgage. Shopping, comparing, and negotiating may save you thousands of dollars.


For more information

1. Look in your local paper. There you should find a listing of local lenders and their rates for comparison.

2. Go to LendingTree.com

3. Call a local mortgage broker. He'll shop around for you and get you the best deal he can. Brokers are in the book

Points are included in closing costs but closing costs include more than just points. Closing costs usually include an origination fee, points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at settlement. The cost of closing usually is about 3 percent to 6 percent of the mortgage amount.

POINTS
Prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the loan amount (e.g., two points on a $100,000 mortgage would cost $2,000).

Best thing is to ask a friend/relative (who has a mortgage now) to go to the bank with you for the first interview.

A lot of websites are there to inform you, too.