Owning a house is a very large part of the American dream. Having a mortgage is almost a requirement to owning a home. The problem is that in today’s world, finding the right mortgage company can be more of a nightmare than a dream.
Predatory lenders are all over the news these days as are mortgage scams. How can the average citizen protect themselves from being cheated? Here are a few tips to help you in your search for a mortgage company.
Do your homework. The phrase “The Truth shall set you free” is an understatement when it comes to finding a mortgage company. Read everything you can about what to expect when applying for a mortgage. Find out what to expect in the way of fees and what the current interest rates are. Bankrate.com, and Realtor.com have excellent articles about the mortgage process as well as current mortgage rates.
Check your credit report. Do this before you talk to a mortgage company. That way you can fix any error and deal with any problems before your credit score goes into the mix for the rate you will get.
After you have read everything you can find about mortgages, choose a few mortgage companies to call. Don’t go with the first one. Talk to a loan officer at each company. Ask what their current rates are, what kind of closing costs you can expect and how much the private mortgage insurance might cost. Compare the companies that you spoke with and choose one first choice mortgage company and one backup mortgage company.
Check out both companies with the Better Business Bureau. Make sure that they are reputable companies with no glaring marks on their records.
If everything checks out, go ahead with the mortgage application with your first choice mortgage company. Be sure to double check all the rates and fees. Make sure that they are similar to the ones you were quoted.
Remember, the loan is not final until you sign on the dotted line. If during the mortgage process you feel like things are not going as they should, maybe the fees are much higher than you were quoted or the interest rate is much higher then originally promised, pull out the number of your backup mortgage company. Give the loan officer at your backup mortgage company a call and see if he or she can do any better. If they can, then don’t be afraid to walk away from the first mortgage company. You don’t owe them anything until you sign the actual loan papers (and that does not include the mortgage application you signed at the start).
If you make sure that you are informed and pay attention to details, finding a good mortgage company can be an easy and enjoyable experience. Well, easy… well, no, it’s really just an experience but you will come out with the best deal.