A No Problem Closing is Doable.

Written By: Jacquelyn C. Dattilo on February 23, 2010 No Comment

All you see today are ads for the lowest mortgage rates around. Frankly, many of these ads are just to lure you in and then you learn the terms are not exactly as advertised.

The bes way to avoid headaches is to know your lender. If the lender with the most attractive rates is not known to you, get any information you can. You can get a lot of detail from the Better Business Bureau as well as the State Banking Commission.

Make sure the broker has experience in your particular kind of mortgage. It is important also to be sure they have been in business a for a time, and are not a fly by night operation. Working with a reputable, experienced broker is the one most important way to steer clear of headaches at closing.

You can learn a lot about your potential bank by researching. Just be careful of information overload, because there is so much information out there today that it can be overwhelming. But understanding the type of mortgages that are most advantageous for you, and the terms available will help you make your mortgage decision easier. In this manner, you can make a list of different loan types with the rates and terms in order to compare.

It is also important to realize who the rate quotes apply to. Most of the time the published rates are for the most credit worthy borrowers, and premiums are added to anyone with a lesser credit rating. learn what those premiums are so you are comparing rates that will apply to your loan.

After you form your list, you can decide which ones meet your criteria. You know what they say the saying “If it’s too good to be true, it probably is.” If all of the 30 year loans you are getting quotes on are within a 75 point spread and one lender boasts 200 points better, beware!

Don’t let any broker force you into a quick choice. If a broker does not take his time to explain, and allow you time to think about it, cross him off your list. You have to make sure you understand each aspect of this important transaction. Walk away from a broker hesitant or unable to answer all of your questions.

Once you understand the terms, get them in writing. This means ALL of the terms, not just rates and maturity. In the case of an adjusted rate mortgage, the index the ARM is fixed on should also be in the agreement. If you have a lock in term, make sure every one of the details of it are in the document. Make sure this document is on the firm’s letterhead and is signed by an officer of the organization. Most headaches that occur with home loans are a result of verbal agreements that are fast forgotten when the terms are no longer attractive to the lender.

Once you do sign a written agreement, make sure you are clear about everything on it. Don’t let the lender to put in legal terms that you do not comprehend. Have it changed to clear language so you know what the terms are. Once again, if the lender is unwilling to do this, walk away.

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categories: finance,mortgage,insurance,home loans,finance