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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.
J Krohn is a freelance writer of informational websites dealing with financial matters and travel. He lives in Colorado and is currently working on a book and travel websites.
For more information on mortgages and home equity look at
and
Homeowners should check out
www.h-o-m-e-s-e-c-u-r-i-t-y.com
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