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Mortgages-Tips to Get From
Application to Closing
You've found your home and negotiated
a good price. Now you've found a lender and you qualified and
submitted all your paper work and got approved. Boy what a hassle
sure glad that's over. Wait a minute there friend-it isn't over!!!
It is just like buying a car-once you
get to the finance office you think you're done and can breathe a
sigh of relief-wrong again!!! Finance offices in car dealerships are
profit centers and big ones too.
Mortgage lenders are not all touchy
feely, make you feel good, have your best interest at heart, leave
that warm fuzzy feeling kinds of folks. You need to be responsible
and step up to the plate and do your homework, get multiple quotes,
and keep you eyes wide open.
After all it is the biggest purchase
of your life.
Here are several things to be on the lookout for that might just
save you some money but most of all help insure that you got a fair
and good deal on your loan and get you from application to closing
without a hitch.
LOAN OFFICER SHOPPING. My fiancée, who is a professional
shopper, would be the first to tell you SHOP SHOP SHOP!!! This is
the biggest purchase of your life, do your homework and find the
best mortgage guy or gal in town. Don't just ask your real estate
agent who may be in partnership with a crook mortgage broker. All of
the lending programs are pretty much the same. Find the best lender.
And COMPARE.
OVER BORROWING. The idea here is when you apply don't fall
victim to the idea that if you just got an interest only or ARM you
could qualify for a bigger house. Of course you can. Then when
reality sets in in two three or five years and you have the full
burden to pay plus a premium you may not be able to afford the
house. Mortgage lenders are there to sell you things not to insure
you can make the payments.
HIDDEN COSTS Interest rates are not the only costs associated
with the loan. Frequently there is a cost associated with getting a
good rate. Get ALL costs in writing up front and compare to what
happens at closing. Lenders rely on the stress factor knowing if
they get you in the closing room and they pull a fast one you seldom
have an option. Have an OPTION.
WATCH FOR EXTRAS. Credit life insurance, biweekly payment
programs, the list goes on and on. Most of these are not worth the
money but they will make your lender happy because they represent
huge profits for them.
Most Mortgage Loan Officers are honest hard working folks. Like any
industry there are always 3-5% that are bad apples. Those are the
ones with predatory practices that give everyone a bad name. Have a
backup lender standing in the wings just in case something goes
south on you at closing. Don't be intimidated into accepting
something that isn't right.
Following these tips will help you get from the application process
to closing of the loan without any problems.
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