Compare mortgage lenders based on total loan costs, qualifications and reliability instead of assuming the first quote offers the best terms.
Prequalification versus preapproval
Prequalification is often a preliminary estimate. Preapproval generally involves more documentation, but final approval still depends on underwriting, appraisal and other conditions.
Compare written estimates
Ask about interest rate, annual percentage rate, discount points, mortgage insurance, lender charges and closing costs.
Understand available programs
Conventional, FHA, VA and other programs have varying eligibility and down-payment rules. Ask participating lenders about available state housing assistance.
Be ready for documentation
Lenders may review employment, income, assets, debt and credit and request documentation for gifts or unusual deposits.
Ask about execution
Discuss rate locks, appraisal timing, communication, contingencies and whether the lender routinely closes your type of transaction.
Questions about a Minnesota transaction? Contact Midwest Realty of Minnesota, a Minnesota-licensed brokerage, at 651-472-4012. This article provides general information, not individualized legal, tax or lending advice.