Where Can I Get the Money?

You mean, you haven't won the Lotto yet? Without a windfall, most of us have to borrow the kind of money that it takes to buy a home in Northern Nevada. Daily bombardment by television, radio and print marketing that promises free, cheap loans may create unrealistic expectations for today's buyers.

Despite fabulous promises and slick marketing gimmicks, internet and out of state lenders seldom deliver on promises in the timely manner required if you want to get a good deal and not lose the home you are trying to buy and your earnest money deposit.

Interview lenders the same way that you would interview real estate agents. Write a list of questions about things that are important to you. You are trusting this lender with a financial commitment that you will be tied to for the next 30 years of your life. This is a big deal. Some questions that I suggest:

•   How long have you been with this company? Why did you choose this company? How many companies have you worked with before? (You might look for a one or two company history but lenders that jump ship all the time are a risky bet how can you be sure they will be there when your loan closes?)
  
•  What is the best rate that for the fees I can afford to pay? (People with more cash tend to have different rate options?make sure you are being quoted the best rate for you not Trump)
  
• What are my payment options?
  
•  What is the full term of the mortgage? Are there other options? What are those prices?
  
•  How long is the lock period?
  
•  Is this an ARM? If it is, how often can the interest rate adjust?
  
•  What is the overall interest rate cap?
  
•  Can this loan have negative amortization?
  
•  Is there a limit to how much the balance can grow before it is recalculated?
  
•  Is there a prepayment penalty if I end this mortgage early by refinancing or selling my home? How much is the penalty?
  
• How much is the total monthly payment?
  
•  What is the most my minimum payment could be after 12 months?
  
•  What would my minimum payment be after five years?
  
•  What are the fees and charges due at the closing of this loan?
  
•  Do I qualify for lower interest rates or reduced fees for first time home buyers?
  
•  Can you help me with government grant programs or down payment assistance programs?
  

Ask the lender what method of communication is easiest for them, how quickly you can expect to have your phone calls returned and how often you can expect an update from them.

Choose with your head and heart. It is easier to ask a more expensive lender that you trust and have confidence in to help you negotiate a more competitive fee than to expect a cheap lender that you don?t have any confidence in to all of a sudden become a trusted advisor.