Select the lender offering the best rate over the phone or in the newspaper.  If you contact enough lenders, you are bound to find someone that will “beat” everyone’s price by $100.  Typically, this lender does not have the capacity or the intention to deliver what they promised.  The number one complaint heard from buyers is that the rate and/or the closing costs changed during the transaction or at closing.  The lender willing to “beat” everyone’s price is usually performing a bait and switch.  They’ll tell you at closing “it was just an estimate” or offer a number of other excuses.  You need a lender with competitive rates that can offer a variety of products, approve your loan, communicate status, meet deadlines and close your loan as promised and on time.<?xml:namespace prefix = o />

Assume you can shop Lender A today and Lender B tomorrow.  The market is constantly changing and so is pricing.  Unless you shop all sources the same day, you are wasting your time.  We are a mortgage broker which means we shop over 20 national lenders daily (yes, including the one you saw the television advertisement for last night).  Why not let the experts do the shopping for you and take advantage of the wholesale pricing we receive?  No, this does not mean you have to pay points or a fee.  The lender pays us for delivering your loan at closing. It really is that simple.

Get a rate quote without providing all the necessary information.  No reputable lender will simply quote a rate.  If you call a lender and ask for their “rate” and you get one without providing any information…run away fast.  In our industry, it is impossible to quote accurate rates and fees unless you know the loan size, down payment, type of dwelling, credit history and score, employment status, income, source of assets…need I go on?  An experienced loan consultant knows what to ask upfront. This avoids changes during the transaction to your rate and fees.  At Synergy we do a detailed interview upfront and will generate an approval on a variety of loan options.  Through experience, we know what needs to be asked in advance to avoid changes and delays.  Our technology allows our loan officers to underwrite and approve your loan immediately.

Accept a mortgage broker’s verbal assurance that your rate is locked or “guaranteed.”  Unless you have it in writing…you are not locked or guaranteed anything.

Shop the closing costs on the loan between lenders.  This is an important one. Yes, you should be on the look out for excessive points or lender fees. However, the majority of the closing costs are paid to the title company.  These will NOT vary based on your choice of lenders.  If you have questions on an estimate, please call us for a free consultation or a second opinion.

Don’t check their mortgage professional’s credentials.  Let’s face it, buying a home is the most important financial commitment we each make in our lives.  You need the help of a licensed professional with the experience, knowledge and technology worthy of your business.  Did you know that many brokers and lenders employ loan officers or consultants that are not licensed mortgage professionals?  Yes, you may be dealing with someone that is not a licensed professional.  Each loan officer at Synergy Mortgage Services is a Licensed Mortgage Broker. In addition, each loan officer is a member in good standing of the Florida Association of Mortgage Brokers as well as the National Association of Mortgage Brokers.  Vicki Moletteire is also a member of the National Association of Responsible Loan Officers, www.narlo.com/639.  Check those credentials.  Each of these agencies were formed to protect you, the consumer, while simultaneously supporting brokers that practice fair lending procedures.

Everyone wants a lower rate, so why aren't we closing every deal with a point charged?  Points lower your rate but raise your cash to close. A point is expressed as a percentage of your loan.  One point equals 1% of your loan amount.  For example, on a $100,000 loan we may be quoting a 6% interest rate with no points.  If you pay one point or 1% = $1000 at closing then your rate would be reduced to 5.75%.  Have this option is a very positive feature.  The down side is it does add more complexity to the loan process. 

Let's make it simple...The average buyer owns their home for 4.2 years.  This is not sufficient time to justify paying upfront to buy down the rate and receive a small reduction in payment. We always take into consideration the "break-even point" before we let a buyer pay points.  This means if you pay $1000 upfront in the above example and the .25% reduction in rate saves you $25 per month it takes you roughly 40 months ($1000 divided by $25 per month) to break even and really start saving.  If you plan to own the house 4-5 years, then it doesn't make much sense to spend that money upfront. 

The other important factor to consider is what else could you do with this money?  Often buyers do not have sufficient emergency funds set aside or they have credit card debt. Perhaps they have not considered the cost of moving alone.  These are all important factors we will make sure you consider when we present your options.  We have your best interest in mind.

Generally speaking though, the amount of cash that is necessary depends on a number of items.  Here are some common costs associated with purchasing a home:

Earnest money deposit -  Amount held in escrow when contract offer is made

Down payment - Some buyers will bring cash to closing to reduce their loan amount or amount financed.

Closing costs - Costs associated with creating the loan which are paid to a variety of parties involved in the transaction and listed on your Good Faith Estimate.  Interested parties in the transaction, such as the seller, are allowed to contribute to your closing costs. 

Pre-paids/Escrows -  These include pre-paid interest on the loan created, real estate taxes and home owner's insurances costs.  These items will vary depending on the property. The estimated cost of each is provided on your Good Faith Estimate.