Posted on 04/06/2021

Four Questions to Ask Your Mortgage Lender Before Hiring Them: Insights from a Mortgage Lender in Rockford, Illinois

3 minute read

As a mortgage company, our goal is to assist as many homebuyers as possible. At the same time, we realize that this is a competitive industry and that it is vital for you to shop around for the best rate. After all, you’ll want to partner with a mortgage lender in Rockford, Illinois who can offer you the best price and services most suited to your needs. It is important to find the right fit.

We want to ensure that when you are looking for a mortgage lender in Rockford, Illinois, you are asking the right questions. This will help you narrow down your list of lenders to work with. Here are four questions to get you started…

What's in this article?

Question 1: Do you offer rate locks?
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Question 2: What fees do you charge?
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Question 3: Can you send documents electronically?
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Question 4: How many loan types do you offer?
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Are You Looking for a Mortgage Lender in Rockford, Illinois?
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Question 1: Do you offer rate locks?

One of the first questions you should ask your Rockford, Illinois mortgage lender is whether they offer lock-ins or rate locks and for how long. A rate lock is just what it sounds like — at the outset of your house hunting, the lender locks in the interest rate you qualify for. Most lenders understand that searching for the right home can take time and interest rates could change before you make your decision. You will have one less thing to worry about once your interest rate is frozen for a certain period, so make sure you have that option.

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Question 2: What fees do you charge?

It is unlikely that you will find a Rockford, Illinois mortgage lender who does not charge fees for their loan program. Standard mortgage fees include appraisal fees, home inspection fees, credit report fees, document preparation fees, HOA fees, and — perhaps the most important — the loan origination fee. Some lenders may also charge additional fees depending on how they operate. It’s important that you pay close attention to these fees because they will be added to the total amount you finance (or your “closing costs”). You do not want any “junk” or “garbage” fees tacked to your mortgage.

Question 3: Can you send documents electronically?

A mortgage application process can involve a lot of red tape. Waiting for paperwork to be filed and reviewed is actually one of the biggest bottlenecks in the application process. This is why your lender should allow you the option to submit required documents digitally — this can streamline the workflow and help you expedite the process.

Question 4: How many loan types do you offer?

Some lenders specialize in specific mortgage types, while others offer a wide variety of choices. The kind of Rockford mortgage lender you choose will depend on your specific circumstance; however, for most homebuyers, a lender who offers a variety of mortgage programs will be the right choice. Lenders with numerous mortgage options can provide you with the freedom to find a mortgage that is tailored to your specific needs and wants.

Are You Looking for a Mortgage Lender in Rockford, Illinois?

Buying a home in the Winnebago County city of Rockford and securing a mortgage is a big accomplishment, often involving many moving parts that homebuyers are unfamiliar with. So, do not hesitate to ask the lender the questions reviewed above — the more you know about the mortgage lender you choose to work with, the better.

If you are looking for a reputable and licensed mortgage company in Rockford, Illinois, you can count on Compass Mortgage. Call us at (877) 793-9362 or contact us online to learn more about how we can help you make wise and informed choices regarding your mortgage financing.

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