How to choose a lender?

Comparing quotes from several mortgage lenders is a critical part of the homebuying process. According to Freddie Mac data, getting three quotes can save you about $1,500, while five quotes can save you an average of $5,000.

So, how do you do this? First, apply with at least three lenders.

Head to their websites, fill out their online application forms, and give them a little information about your homebuying plans. You can usually get a quote within a few hours to a day or two.

Once you have the quotes in hand (they’ll come in the form of what’s called a “loan estimate”), you should look at the following points to compare your options:

  • Interest Rates

    • Interest rates vary greatly between lenders. So, see how your quotes measure against other lenders. ​

    • Example of how interest rates can drastically change your monthly payment:

      • Purchase Price: $300,000​

      • 10% down payment

      • Loan Amount: $270,000

        • At 4.25%, your monthly interest and principal payment is $1,328.24​

        • At 4.75%, your monthly interest and principal payment is $1,408.45 

  • APR

    • ​This is your total annual cost to borrow the money, plus any fees or other charges required. 

  • Origination, underwriting, and application fees:

    • Do the lenders charge fees for any of their services? If they do, compare the cost of those and see what comes out on top.​

  • Prepayment penalties

    • Some lenders charge a penalty if you pay off your loan early. Make sure you know which of your options does and doesn’t​.

  • Estimated closing costs and cash-to-close

    • This is what you’re expected to owe for the loan’s closing and on closing day. These can vary greatly as well.​

  • Private Mortgage Insurance (PMI)

    • Private mortgage insurance (PMI) is a type of insurance policy that protects mortgage lenders in case borrowers default on their loans. This insurance cost will vary depending on the lender and the type of loan that you are seeking (i.e. Conventional, FHA, USDA, VA, etc.)

How To Find A Lender?

You can find mortgage lenders online, through your real estate agent, or by using a mortgage broker. You can also look to your personal bank or local credit union for a mortgage loan. If you’re in Illinois, here are a few of our trusted partners:

Juan Fleitas - Compass Mortgage

Direct Line: 630.687.6023
Cell Phone: 708.214.2222
Email Address: juanfleitas@compmort.com
State License: NMLS# 219823 

Erica Garcia - Compass Mortgage

Direct Line: 773.644.2932
Cell Phone: 773.710.1665
Email Address: ericagarcia@compmort.com
State License: NMLS #1714772

Amiel Steurman - Cypress Mortgage

Direct Line: 312.829.1010

Email Address: amiel@cypressmc.com

State License: NMLS #234812

Wendy Aquino - SunWest Mortgage Company

Direct Line: 773.946.3650

Email Address: wendy.aquino@swmc.com

State License: NMLS #921729

Have A Question?
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If you have any questions about your situation, message us for answers to your specific questions.

 

We're happy to help anyway we can.

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Chicago, IL 60641

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