Two Factors to Consider When Looking at a Mortgage Contract
You are now on the verge of making what will be most likely the biggest transaction you will ever make in your life: your home mortgage.
As such, it is very important indeed to do your research, think through your options and look at the details before making the final decision on your home loan.
Doing so can and will save you thousands of dollars for such a little time and effort.
That being the case, here are the five factors to consider when looking at home loan contracts.
Take note that each one is as equally important as the others.
Keep in mind, too, that the right broker can assist in making sound business decisions based on your home needs and personal financial situation.
Reputable Lender and Broker One of the very first things you must look into is a reputable mortgage company.
Remember that business trust is very important in the home loan process simply because you are placing a very big stake of your future in such a contract.
In many instances, a home loan broker is the ideal way to find such a reputable lender.
Usually, the professional services are for free, which any way you look at it, is a good deal considering that the mortgage broker will do many things for you - find the best possible rate, discuss your options, perform the underwriting and even find you the best professionals for your home loan-related needs.
You will ask about the catch since nothing is really for free in the business world.
Well, the broker is paid by the lending institution.
Favorable Pricing Now, if you choose to do it on your own, you must ensure that you find the most favorable pricing.
Don't be lured by promises of low, low rates because unscrupulous companies will change the rates prior to closing claiming that your "lock-in" rates have expired.
To avoid this from happening, you must ensure that there is sufficient time to close the mortgage, the expiration date is clearly provided for in the contract and delay time is provided for.
You want to avail of the low rates as promised with an iron-clad guarantee.
And speaking of closing, you must iron out problems prior to closing the contract.
This way, you will not be surprised, to say the least, about additional costs like builder's fees and repair expenses.
Also, you must be prepared for closing costs.
Depending on the program chosen, you will be required to pay anywhere from 2 to 6 percent of the mortgage contract.
To avoid being surprised with said costs, you must ask for a "Good Faith Estimate", which is a detailed breakdown of the costs to be incurred before, during and after the contract has been sealed.
There are other factors in a mortgage contract that you need to look into, which include hidden fees and bottoming out the market.
The above mentioned two factors, however, are often the foundation upon which your search for the best home loan is anchored upon.
As such, it is very important indeed to do your research, think through your options and look at the details before making the final decision on your home loan.
Doing so can and will save you thousands of dollars for such a little time and effort.
That being the case, here are the five factors to consider when looking at home loan contracts.
Take note that each one is as equally important as the others.
Keep in mind, too, that the right broker can assist in making sound business decisions based on your home needs and personal financial situation.
Reputable Lender and Broker One of the very first things you must look into is a reputable mortgage company.
Remember that business trust is very important in the home loan process simply because you are placing a very big stake of your future in such a contract.
In many instances, a home loan broker is the ideal way to find such a reputable lender.
Usually, the professional services are for free, which any way you look at it, is a good deal considering that the mortgage broker will do many things for you - find the best possible rate, discuss your options, perform the underwriting and even find you the best professionals for your home loan-related needs.
You will ask about the catch since nothing is really for free in the business world.
Well, the broker is paid by the lending institution.
Favorable Pricing Now, if you choose to do it on your own, you must ensure that you find the most favorable pricing.
Don't be lured by promises of low, low rates because unscrupulous companies will change the rates prior to closing claiming that your "lock-in" rates have expired.
To avoid this from happening, you must ensure that there is sufficient time to close the mortgage, the expiration date is clearly provided for in the contract and delay time is provided for.
You want to avail of the low rates as promised with an iron-clad guarantee.
And speaking of closing, you must iron out problems prior to closing the contract.
This way, you will not be surprised, to say the least, about additional costs like builder's fees and repair expenses.
Also, you must be prepared for closing costs.
Depending on the program chosen, you will be required to pay anywhere from 2 to 6 percent of the mortgage contract.
To avoid being surprised with said costs, you must ask for a "Good Faith Estimate", which is a detailed breakdown of the costs to be incurred before, during and after the contract has been sealed.
There are other factors in a mortgage contract that you need to look into, which include hidden fees and bottoming out the market.
The above mentioned two factors, however, are often the foundation upon which your search for the best home loan is anchored upon.
Source...