uying a home or rate. The interest rate will
refinancing one is perhaps ultimately decide how much money
the largest financial you will be spending at the
transaction you will ever make in closing table and how much you
your life, so you want to be sure will be spending in charges over
to avoid any mistakes that may the life of the loan.
cost you in the long run.
The difference between a
When you are deciding on a percentage and half a percentage
mortgage, you certainly don't could mean thousands of dollars
want to make your decision by over the life of the loan.
flipping a coin.
So shop around, if you speak with
You will have to do as much four different loan officers, I
research as you possibly can, so can assure you, you will get four
that you will understand all of different rates, obviously you
the jargon the people in the want to go with the one that is
mortgage industry will throw at the lowest.
you.
Don't be afraid to ask questions.
Here are three common mistakes Ask how the rate is determined.
that people make when deciding on Sometimes loan officers can make
a mortgage. a little extra commission by
raising the rate a little bit.
1. Settling for a high interest
rate. 2. Read your good faith estimate
When you are shopping around for When you decide on a mortgage and
a mortgage, one of the most a lender, they will send you
important factors is the interest disclosure documents, they are
required to send these by law. it, this could save you anywhere
Inside of these documents you from a couple of hundred dollars
will find a good faith estimate. to a couple of thousand.
This is an accurate estimate of
what you can expect your closing 3. Don't be afraid to shop around
costs to be when you go to
settlement.
If at any time a lender or loan
Read every part of this document officer tells you not to deal
line for line and word for word. with anyone else because it may
If there is anything on there be detrimental to the loan or to
that you don't understand, call your credit, they are lying. If
your loan officer and go over it this happens, they are trying to
together. scare you out of doing business
with anyone else.
Your loan officer will most
likely want to mail you these Feel free to shop around as much
documents. This is fine. However, as you would like. Do as much
if you can meet somewhere to go research as you can before making
over it together, than all the a decision. So when you finally
better. do make a decision on a mortgage,
you can avoid the pitfalls that
But read your good faith estimate people so often make.
very carefully before you sign
About the Author:
Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry, He is the owner of http://www.jconners.com, a mortgage resource site, he is also the owner of http://www.callprospect.com, a mortgage lead company.
Source: www.isnare.com
