Get the right mortgage loan and save money

Rate is important but there are other critical factors

How important is your time to you? Do you have plenty of it to spare? Or do you, like most people, wish they could squeeze a few more hours out of each day?

“That may seem like an unusual question to be asked when talking about getting a mortgage loan, but it’s actually a pretty good starting point. Getting a loan is a process. For first-time homebuyers, it can seem overwhelming. Even those who have gone through it before can still feel swamped and out of their element. There’s a lot of paperwork, new regulations to adhere to, income and credit requirements, and timelines to follow every step of the way,” said Rick Piette, owner of Las Vegas-based Premier Mortgage Lending.

“That’s why I ask about the value of a borrower’s time, because there’s also a process they should follow in finding the right mortgage lender to begin with. Choosing the wrong lender can suck up a lot of a borrower’s time, energy and even money,” Piette said. “It takes more than finding the lowest advertised interest rate in an advertisement. Yes, the rate is important. But there are other critical things to be aware of, too.”

What Piette refers to are the things important when people buy a car or any other big-ticket item. They want to know the price, company and product reputation, quality of customer service, that they’re being given the best options to make an informed decision, and that they’re comfortable knowing the seller will be responsive to their questions.

“Strangely, when it comes to a mortgage loan, most people just assume that every lender is the same. That there’s no difference in the product or their performance; that one lender is just like any other, and it’s all going to be smooth sailing. If only that was the case. But of course, it’s not, and it’s something many end up learning the hard way.”

“An excellent example is not realizing there’s a difference between how banks, mortgage banks and mortgage brokers offer loans. The key is to know a bank and a mortgage bank only offer loan programs available from their own institution. But a mortgage broker works with many lenders to find the right loan for your situation. With a broker, borrowers fill out one application – but get responses from multiple lenders who are all competing for the opportunity to make your loan,” Piette said. “You can choose the competition of many lenders when working with a mortgage broker – or to be a captive audience working with a bank or mortgage bank. One of these things is definitely not like the other,” he said.

“Let me share with you how this can make a huge difference for a borrower. Not only in getting to choose the right loan program, but in finding a loan that makes it possible to buy a home at all.

“One of the top reasons that stop people from buying is thinking they’ll have to spend months or years saving to get 5, 10, or even 20 percent of the purchase price for a down payment. But one of the mortgage loan options we’re able to offer our customers — precisely because we work with several lenders — is our new “1% Down Loan Program.” It’s actually helping people buy a home sooner, and letting them take advantage of current home prices and low interest rates.

“This loan requires only 1 percent of the purchase price as a down payment, and even that amount can be a gift. It’s a 30-year, fixed conventional loan, so payments stay the same. Plus, the lender contributes an additional 2 percent down at closing — which means buyers immediately start out with 3 percent equity.”

That’s just one example, but it clearly demonstrates that by failing to shop around with more than one lender, borrowers can miss opportunities like this, never even realizing they exist.

In addition, customers should know that choosing the wrong lender can turn into a costly and difficult situation. They might pay thousands more in costs and fees than they need to, or an inattentive lender might even miss a closing date. That can cause a lot of problems — from losing a locked-in interest rate or even losing the home completely due to non-performance.

“That’s why at Premier, we make a real effort to help educate our clients about the entire process,” Piette said. “They know what they can expect from us, what information they’ll need to provide and when — and be comfortable with the fact that we regularly keep them “in the loop” about the status of their loan. Because no one is happy about not getting the loan they were told they would, and especially about not getting the house keys when they expected.”

Want to know more about how to choose the right mortgage lender? View Premier’s quick informational video series at www.KnowBeforeYouOweNevada.com. For more information about Premier’s program, visit www.1PercentLoan.com, or call 702-485-6600.

Premier Mortgage Lending, NMLS No. 393282, is located at 701 N. Green Valley Parkway, Suite 125 in Henderson. The full-service lender is a member of the Las Vegas, Henderson, and Boulder City chambers of commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.