SHOPPING FOR A LENDER 2.1 Shopping for a Lender. It is important to shop for a lender before you shop for a loan. Most lenders should have the ability to offer a wide variety of loan programs. While some lenders may have better options than others, there are very few 'exclusive' loan programs. The ability of a lender to offer a certain loan program is a function of the individual loan officer to understand the client's requirements and offer the program that best meets those objectives. 2.2 Where to Start. The most important factor of your relationship with a lender is trust. No matter how much research you do in regards to loan programs and interest rates, there will come a time where you simply must trust that your lender is providing advice and service you can rely on. 2.3 What About Calling Around for the "Best" Rate? Do not make the mistake of calling lenders and asking for their best rate. It is easy for a lender to quote a low rate on the telephone or in an advertisement before you have a home and are in a position to 'lock' your rate. In most cases you must have a property identified and under contract before you can 'lock the rate'. There are many factors that a lender must consider when quoting a rate. In addition, loan programs and rates can change daily. A good lender will realize that a mortgage loan can be the center piece of a sound financial plan. 2.4 What Are Some Questions I Should Ask a Prospective Lender? What are mortgage interest rates based on? How do points affect my rate? What is the next Economic Report or event that could cause an interest rate movement? When the Federal Reserve changes rates, what does this mean and what impact does it have on mortgage interest rates? Please contact Garry and Mary for additional questions. Also, you may be able to judge the competence of a lender by some of the questions a lender asks you during the initial telephone conversation. A lender should not recommend a loan program for you without obtaining a thorough understanding of your financial goals. You should expect to be asked questions beyond the traditional inquiries regarding income, assets and debts.