Home Loans & Refinances: 7 Little Known Loan Secrets that Can Save You Thousands
When shopping for a home loan, getting a competent loan officer (and an ethical one) is far more than of import than economy a fraction of a percentage point on your interest rate. Going with the "lowest bidder" may salvage you five or 10 vaulting horses on your home loan, but choosing who to work with just because of the lowest interest rate could very likely get you a "loan shark" who will get you stuck with a rate that is irreversible, or you might not even get a loan at all.
The best ways to avoid conceivers who are incompetent, or who pattern unethical tactics:
Avoid shopping for a L.O. inch the phone book or newspaper. Thats where most predatory conceivers advertise.
Avoid committing to conceivers just because they assure the lowest mortgage rate. If their rate is more than than 1/4 of a percent less than what most other lenders are offering, its likely too good to be true, and you wont happen that out until its too late. (Usually - the morning time of closing!)
Ask trusted friends who they used for their loan.
Beware if the loan written documents you are signing affect a pre-payment penalty. Pre-payment penalties are typically attached to a loan when conceivers are being given a large kickback from the lender. Before you subscribe those loan documents, get a second opinion. If the pre-payment punishment wasnt sprung on you until you are at the shutting table, you should strongly see what you are committing yourself to before sign language those documents.
Ask your trusted Realtor for a couple recommendations of conceivers to use. Unlike you, who wont likely be purchasing again for old age down the road, lenders desire to do certain to affect Realtors, because those Realtors stand for tons of other loans through buyers theyll go on to direct their way.
Never - ever - get a home loan from an out of state lender. Every state changes widely on the loan shutting process. Even the most competent lender could endanger a transaction for something as minor as not knowing whether the home you are buying is in a "wet state" or a "dry state".*
If you really desire to have got fun, when you apply for your loan, inquire your LO what fees they charge, and after they give you their answer, inquire them if that includes a "yield spread". (Youre GUARANTEED to catch them off-guard.)
*A "wet state" finances the mortgage loan on the twenty-four hours of closing, whereas a "dry state" finances the loan respective years after closing.