Shopping Around? Here’s The Inside Scoop On How To Do It Right! The most important tip we can give you is to make sure you are working with an experienced, professional mortgage lender. One of the largest financial transactions of your life is far too important to place into the hands of someone who is not capable of advising you properly and troubleshooting the issues, which may arise along the way. Once you are satisfied you are working with a top-quality professional mortgage lender, here are the rules and secrets you must know to “shop” effectively. First, if it seems too good to be true, it probably is. But you didn’t really need us to tell you that. Mortgage money and interest rates come from the same places, and if something sounds unbelievable, please ask a few more questions and find the hook. Is there a prepayment penalty? If the rate seems incredible, are there extra fees? What is the length of the lockin? If fees are discounted, is it built into a higher interest rate? Second, you get what you pay for. If you are looking for the cheapest deal out there, understand that you are placing a hugely important process into the hands of the lowest bidder. Even in the best case you can expect very little advice, experience and personal service. In the worst case scenario, you may not close at all. All too often, you don’t realize until it is too late that cheapest isn’t BEST. Most importantly, remember the cheapest rate on the wrong strategy can cost you thousands more in the long run. This is one of the largest 14• TODAY’S HOME - Spring 2017 financial transactions you will make in your lifetime. At First Dakota, our rates and costs are very competitive, but we have also invested in the best mortgage systems and have built a lending team to provide you the top quality experience you deserve. We live and work in the community and will be here for you to answer any questions before and after the loan is closed. Third, make correct comparisons. When looking at estimates, don’t simply look at the bottom line. You absolutely must compare lender fees to lender fees. And make sure lender fees are not “hidden” down amongst the title or state fees. Call us and we will help you compare and answer your questions. Fourth, understand interest rates and closing costs go hand in hand. This means you can have any interest rate you want – but you may pay more in costs if the rate is lower than the norm. On the other hand, you can pay discounted fees, reduced fees, or even no fees at all – but understand that this comes at the expense of a higher interest rate. Either of these balances might be right for you, or perhaps somewhere in between. It all depends on what your financial goals are. A professional lender will be able to offer the best advice and options in terms of the balance between interest rate and closing costs that best fits your personal goals. Fifth, understand that interest rates can change daily, even hourly. This means that if you are comparing lender rates and fees – this is a moving target on an hourly basis. For example, if you have two lenders you just can’t decide between and want a quote from each – you must get this quote at the exact same time on the exact same day with the exact same terms or it will not be an accurate comparison. You also must know the length of the lock you are looking for, since longer rate locks typically have slightly higher rates. Again, our advice to you is to… Be smart... Ask questions… Get answers! You might do this only a couple times in your entire life… but we do this every single day. It’s your home and your future. It’s our profession and our passion. We're ready to work for your best interest. If you have any mortgage lending questions, please contact Gloria Bohn, 605-665-4951, gbohn@firstdakota.com; Mary Pfeiffer, 655-7579, mpfeiffer@ firstdakota.com; or Sandy Brown, 605-624-5845, sbrown@ firstdakota.com. Or go to www. FirstDakotaMortgage.com to complete our prequalification application. v Editorial provided by First Dakota National Bank Sandy Brown Gloria Bohn Mary Pfeiffer If your walls could talk, they’d thank you Great Home Insurance Protect your home with the best. And do it at a price that will have your wallet saying “thanks” too. Like a good neighbor, State Farm is there.” Roy Wilcox Agent 200 W 4th ST Yankton, SD 57078 Bus: 605-665-7140 roy.d.wilcox.b6fp@statefarm.com