THINGS TO KNOW BEFORE Applying FOR A MORTGAGE 

 Learn the difference between a direct lender (bank) and a mortgage lender (aka mortgage broker)

  When working with a loan officer employed by a bank you are working with a direct lender.  A direct lender will only be able to offer you products offered by their financial institution, which offers a multitude of financial services (savings, checking, financial planning, credit cards, etc). If you are dealing with a mortgage lender, sometimes referred to as a mortgage broker, that specializes in residential lending you will be working with a mortgage expert who knows market trends who can offer a variety of loan options with different lenders, not just one financial institution.

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Get educated

Ask about loan options. There are programs with no money down for eligible buyers, for example. Ask about  loan options with and without points as well as fixed and adjustable rates. This matters now more than ever in today’s ever-changing mortgage market. Learn about closing costs and how they apply to different typos of properties. For example, condos may have additional closing costs due to the HOA, which sometimes charges fees for various applications and to obtain bylaws/ rules and regulations for the HOA. In addition, as a buyer you will typically be responsible for title and settlement costs. Your lender and realtor should be able to educate you more on these anticipated costs as well as inspection and appraisal costs.