|
Author: Garret Belisle Article source: http://www.askfinancing.com/. Used with author's permission.
This post is a must read for anyone considering purchasing a home be it today, tomorrow or next year. It is sound advice.
1. What is the loan's Interest Rate and Annual Percentage Rate?
Find out what the interest rate will be on your loan and the annual percentage rate (APR). The APR is a combination of the interest rate, points and other charges divided by the loan's term to give an annualized rate. It is the easiest way to properly compare loan costs.
2. How Many Points Will You Be Charged?
A point is one percent of the loan amount. Points charged are additional to the interest rate that is charged on the loan. A loan with a low interest rate and high points may cost you thousands more than one with a higher interest rate but low points. This is important because the number of points charged varies from lender to lender. You absolutely need this information.
3. What Total Closing Cost Fees are Charged?
Lenders will charge fees for their services to complete and close your mortgage. By law, closing costs must be disclosed to you within 3 days of the loan application, however, there are different avenues to calculating them. Some brokers will initially disclose closing cost figures which are very appealing, to get your business, only to provide much higher costs as your closing date approaches. Sneaky and its done quite often, be careful here.
4. Can I opt for a "Lock-In" Policy?
There may be an Additional Charge to Lock-In an Interest Rate and Discount Points. Several lenders offer a lock-in policy that guarantees you certain interest rates and points for a specified time period. The alternative to this is accepting the prevailing rate and points on your closing day. Since rates change daily, the one time lock-in fee may be able to save you thousands.
5. How Long Will it Take to Process My Mortgage?
Processing is the means by which your loan is prepared for approval. The time it takes to process a loan varies by the type of loan and lender. Loans can usually be funded within 7 to 10 working days. Since timing may be a factor, a lender with quick processing and funding capabilities will prove to be a very valuable asset for you all around.
6. Are You a VA Automatic or FHA Direct endorsement Lender?
VA automatic and FHA direct endorsement means that a lender has met all the government requirements for FHA/VA and the lender's underwriter has completed the mandatory education. An automatic or direct endorsement lender can approve or disapprove a loan just as if the loan had been sent directly to the regional FHA or VA office. (N/A for Canadians)
7. Can I Finance the Upfront Private Mortgage Insurance (PMI)
Premium into the Loan Amount? If your down payment is less than twenty percent of the sale price, to qualify, you will be charged PMI, an insurance premium to protect the lender in case you or someone else who assumes your loan defaults on the loan. Some lenders allow you to include the first years premium into the amount of the loan. Including this premium may be the difference when getting a mortgage by reducing your cash outlay.
8. Is There a Pre-Payment Penalty?
Normally you can prepay a loan without penalty if you notify the lender in writing that you are either selling or refinancing. There are exceptions. Make sure to ask about your mortgage, play it safe, you don't want a surprise later on.
9. What is the Lender's History?
It's important to rate your lenders reputation for speedy processing, knowledgeable loan service and meeting contract deadlines. You want to hire a mortgage broker who will treat you the way you want to be treated, and is not just looking for you to sign and get it done, make sure they are taking proper care of your needs. Your lender will be dealing with your hard earned money and home purchase, so you want to be confident that you have made the right choice.
10. What Do You Offer to the First Time Buyer? (If this is you)
Purchasing a home is among the most significant financial decisions anyone will ever make. Make sure you get all of the information you need on this, it may save you some money.
Have you noticed I always somehow wind up going back to the first time home buyer? It is because buying a home is such a HUGE Financial investment that you absolutely must be prepared. Keep in mind you can find excellent advice here, take a close look at what's available to you. And as always it's always no cost, no obligation.
Get out there....
Invest in your future.
Regards
Garret Garret Belisle is the author of a blog designed to help you on your way to home ownership, and some helpful tricks on down payments and credit repair. You can view the site here at http://www.gbcmortgage.blogspot.com.
Garret Belisle is also the co-author of http://www.firefoxmentor.com a manual guide to the firefox browser.
Payday Loans – The Legal Loan Sharking Industry
Laws have been created to protect people against "Loan Shark" practices in which short-term loans are given out at excessive interest rates. There is an indust...
Does The Size Of Your Baby Matter?
Some babies are born small, some large - does your baby's size matter?
Turn Boring Reading Glasses Into Fun With Color, Shape And Design!
Your reading glasses don't need to be plain and boring. Read about new materials and design options to have fun with your readers moving forward.
Mediterranean Diet - Lose Weight Quickly, Easily & Safely
If you are looking for a way to lose fifty pounds in two weeks, a high protein diet, a low carb diet, a fruit diet, a no fat diet, a blood type diet, a juice fa...
What Exactly is a Mortgage Broker and How Can He/She Help You Save Thousands on Your Mortgage?
A mortgage broker can help you save thousands over the life of your mortgage by finding you mortgage rates that are as low as 1% to 2% off the posted bank rates...
The Four Things You Need For A Successful Workout Program
Starting to exercise without knowing how to make it a success is the reason many
people don't stick to the workout program. Learn what you need to stick to th...
How To Adopt A Shelter Cat - Your New Cat Will Thank You For Reading This Article
If you are thinking of adding a feline to your family, consider adopting a cat from your local animal shelter or humane society. The animals have been carefully...
Electronic Treadmills
Electronic treadmills give you the discipline you need,and probably lack,to get a complete cardiovascular workout.
Interview with Suspense Author Peter Abrahams
Peter Abrahams is the author of thirteen novels, including "The Tutor," (Ballantine Books) "A Perfect Crime," (Ballantine Books), "The Fan" (Fawcett Books), and...
Gambling Establishments Negatively Affect Our Community
Gambling establishments continue to negatively affect our community by taking needed resources for personal gain. Since legalizing gambling, our society is add...
10 Tips for Living the Life of Your Dreams
Why are you here? What is your Purpose For Existence (PFE)? Don't let fear control you. We can either live a meaningless life, or a meaningful existence...
Off The Shelf Software for Making Business Lists
Available to all small businesses are business lists, which come on CD ROMs. This off the shelf business list software can help you in your small business. You ...
Alcohol Rehabilitation Centers - Take An Informed Decision
Alcohol rehabilitation centers in the United States offer a wide range of treatment programmes for your recovery from alcoholism.
Busy Mums Guide to Losing Weight
Starting a family is both rewarding and challenging. However, it often means little spare time (or money) to spend looking after you! Things you once took for g...
Debt Recovery Can be Easy
OK, so you are up to your head in debt. You are stressed out, it is now affecting the way you function and absorbing most of your daily thoughts. You have no ...
What Momma Never Told Me About Housekeeping
A lot of us grew up with Mom taking care of most everything. Now, we do things pretty much the way she did. What if there is a better way? If you are buried ...
End Time Clock Ticking Away?
Earlier this month, I heard President George W. Bush and Mahmoud Abbas, the Prime Minister of the Palestinians speaking of another Peace Treaty with Israel.
Internet Directory Submission, Sure Way To Link Popularity
Most website owners fail to differentiate between a directory and search engine, failure to do so has resulted in failure to harness the powers of Internet dire...
10 Great E-Commerce Businesses You Can Start Now
If you've been thinking of starting a business on the web but you're not sure what type of business to start then this article is for you. You could be wasting ...
How to Get Customers for Free
People spend a lot of money getting new customers in one by one. Using search engines to send people to you can generate a constant stream of qualified customer...
Of Whom The World Was Not Worthy Of
What will people say about you when you die? How will your loved ones react to you leaving them?
What Does Your Business Card Say?
Business cards are the most underutilized and
misunderstood marketing tool in business. Many
people spend the bucks for cards and don't make an
effort to get th...
Paper - More than Meets the Eye
What is paper? Why does some last and yet others
deteriorate? How should we choose paper for long term
archiving.
Recognizing Early Symptoms Diabetes
Stay alert in recognizing early symptoms of diabetes. Certain symptoms put you on notice and you'll want to decrease the chance of developing into complications...
|
Print this page