While buying a home is an exciting experience, it can also be one of the most difficult if you do not understand the mortgage process. Many families are overwhelmed by the amount of paperwork they must complete. Knowing what to expect, especially if it is the first time you buy a home, will help you make sound decisions about buying your home. This guide was written to help you move through the mortgage process, from the people involved to the costs and forms you must complete, and show you the steps you need to take to make sure you have a long-term home. Understanding the purpose and main function of the mortgage process documents as well as the role of the mortgage brokers involved will make the mortgage process much more friendly.
When collecting expert information, it is more important than ever to ensure that you receive reliable information, which will allow you to make the right decisions throughout the mortgage process. Follow these helpful tips so you can protect yourself from organizations that may not care about your well-being:
Say NO to easy money. Be wary if someone tells you that your credit problems will not affect the interest rate. When an offer seems very attractive, it is important to ask for it in writing and then seek a second opinion.
Investigate. Always talk to several mortgage brokers in order to find the best loan for which you qualify.
A mortgage loan product or a loan practice may seem reasonable until compared to similar mortgage loan products offered by other lenders.
Get information about prepayment penalties. Find out if the mortgage loan you are offered includes paying a fee if you liquidate it in advance. If it is a mortgage loan requirement, ask for other products that do not include this type of fine.
Make sure the documents are appropriate. Be wary of anyone who offers to falsify your income information in order to qualify for a home loan. Never falsify information or sign documents that you know are false.
Make sure the documents are complete. Do not sign documents that have incorrect dates or blank fields. Be wary of professionals who promise to fix it afterward or who will fill it out after you have signed it.
Ask about additional charges. Request a list of all charges that will be part of your mortgage process. Ask for anything you have not asked for or do not know before you are asked to sign the mortgage loan documents.
Know the total package. Ask for written estimates that include all points and charges. Compare the annual percentage rate (APR), which combines an interest rate on the loan with other charges that the lender charges during the life of the loan.
Work with legitimate credit counselors. Be wary of scam credit counseling and credit consolidation agencies. Research all you need to know or have any doubts before making the decision to combine credit card debt or other debts with a mortgage loan.
Do not sign if you are not sure! First, get advice from a reputed consumer credit counseling agency or a recognized housing counselor.