Which Bank is Right for Me?

Question: How do I decide which bank to get a mortgage from? Are there some banks that are better with certain loans as opposed to other ones?
 
A: One of the best ways to decide where to get your mortgage from is based on personal referrals.  A referral from your realtor, attorney, or friends that have recently closed on a mortgage, is usually a good way to start.  Most shoppers compare at least 2 different lenders for the same product.
 
Question: Is there a benefit to paying off your mortgage before its time? There is no prepayment penalty on our loan, but I am trying to figure out if there is a reason to do so or just continue to pay our monthly payment.
 
A: The benefit to paying off your mortgage before its time is you reduce the amount of interest that you would pay if you waited to pay off your loan.
 
Question: I was approved last week for a mortgage - how long will it take us to close? We have an approved offer and signed contract, but we are getting nervous that we won't close before our lock expires. Is there a way to extend that?
 
A: The time it takes to close a mortgage after it is approved depends on the amount of "prior to closing" conditions that need to be satisfied to clear your loan for closing.  The individual lender's turnaround times, or the amount of time it takes for them to review these conditions, will also need to be factored in.  Have a conversation with your loan officer about this, and based on your rate lock, whether they feel you will close or need to pay for a rate extension.
 
Question: My husband and I have a mortgage with Bank of America. My husband needs to take out a loan for business. Is there any advantage for using the same lender? Can you get loans anymore for a start-up business?
 
A: I do not have any knowledge of business loans, but it makes sense to check with Bank of America to see if they can help.
 
Question: What exactly is a home equity loan? Is it added into your mortgage or does it have to paid separately, and have its own interest rate?
 
A: Home equity loan are considered a second lien on the property.  There is a second payment to the Home Equity Lender and it will have its own interest rate and term to pay off the loan.