"...avoid disappointment and SAVE thousands by taking a few minutes to acquaint yourself with these potential mistakes..."
Knowing How Much Money You Can Put Down
It's important to know how much you can afford to pay in down
payment and closing costs when you apply for your mortgage. The
more you put down the better rates and terms you’re likely
to get. At the same time you also need to stay within your means
and comfort level.
With A Mortgage Broker Who Has A Poor Performance Record
Industry insiders know that the most common reason that a sale
fails to go through is that the mortgage fails to go through.
Ask your mortgage broker about her/his performance guarantee.
Understanding The Process
Most of us don't shop for a mortgage very often. As a result it
isn't something we become familiar with. Work with a mortgage
broker who will take the time to answer your questions and uses
terms you understand.
With A Lender Who has Only One Investor
Not all lenders have a range of options when it comes to investors.
What if that investor doesn't offer the type of mortgage you need?
Or worse yet, what if you need to change loan products after you've
started the process? Working with a mortgage broker who has many
investors enables you to address these issues without starting
the process over again.
Large Purchases Prior to Your Mortgage Application
Many people think that it is in their best interest to get large
purchases completed prior to applying for their mortgage. As total
debt is a key component in determining the amount of home you
qualify for it is best to wait until after your home purchase
has closed to make such purchases.
Shopping Your Loan
Each time you call a lender seeking the best possible rate and
terms you have your credit report pulled. Every time your credit
report is pulled you risk decreasing your credit score and thus
possibly decreasing the likelihood of getting the best rate and
terms. Experts recommend that you select a mortgage broker with
a number of investors and do your shopping with her/him.
Things From Your Mortgage Broker
Most of us have experienced times of financial difficulty at some
point. While it can be embarrassing to discuss issues like this,
your mortgage broker is there to help you get loan approved despite
such issues. Your mortgage broker can only help you with those
things with which s/he is aware.
Late payments, especially those within the last year, can be very
detrimental to getting the best rate, terms and even the difference
of being approved at all. While this might seem like unnecessary
advice, ALWAYS pay on time.
Using Credit Cards
Credit cards are a convenient way to make purchases, but if not
paid off or balances kept low you might find it more difficult
to get the best rates and terms on your mortgage. Keeping your
total debt as low as possible helps you get the mortgage that
best meets your specific needs.
On Someone Else’s Loan
While it can be a great service to a friend or loved one, signing
to guarantee someone else’s loan is often a big head ache
for the cosigner. Before cosigning you decide if you’re
willing and/or able to assume the liability.
Getting All The Facts
It is important to learn the total cost of your mortgage loan,
both at closing and for the life of the loan. While mortgages
can look a lot alike there can be subtle differences which can
save or cost you thousands of dollars. Get all the facts and know
what to expect.
Scot Krueger - Koenig & Strey GMAC Real Estate
A Consumer's Guide to Mortgage Refinancings - Tips from the Federal Reserve with an overview of application and and loan origination fees, home inspection, mortgage insurance and other common settle costs with sample worksheet and related resources.