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Hi, I'm Robert Mangino with Mike Henry, Vice President of Dollar Bank Residential
Lending, and we're here to talk about shopping for a mortgage. Mike, what is important
when considering a mortgage other than rate?
Well, obviously rate is very important, but you also have to look what's behind
that rate. And what I mean by that is: what the fees are associated with that loan.
You could have two different lenders with the same rate, but if the fees
for one lender is higher, that's effectively a higher cost to borrow. Why is locking
your rate important?
Well, mortgage rates can change daily. They're traded much like
treasuries or stocks.
So the rate you see today may not be available tomorrow. So it's best to protect
your rate while you're in process. And at Dollar Bank, we offer customers the ability
to re-lock their rate while they're in process, so if the rates were to go down they can take
advantage of it, and you don't want rates to go up while your loan is in process.
Why should you get pre-approved?
It's important to know how much you can borrow.
In fact, realtors oftentimes won't even show you a property until you have a
pre-approval letter in your hand.
And sellers
want to see that so that they know they have a viable buyer. And it gives you better
negotiating.
Thank you, Mike. For more information, contact a Dollar Bank mortgage expert
at 1-800-344-LOAN or visit their website,
dollarbank.com