Mortgages: Tips to Get From Application to Closing

You've found the home of your dreams and negotiated an excellent price. Now you've found a lender and you qualified and submitted all the paper work and got approved. Sure glad that's over. BUT - it isn't over!!!

It is like buying a car; once you get to the finance office you believe you are done and can breathe a sigh of relief. Wrong again!!! Finance offices in car dealerships are profit centers and gigantic ones too.

Mortgage lenders are not about making you feel good, have your best interest at heart, leave that warm fuzzy feeling type of folks. You must be responsible and do your homework. Get multiple quotes and stay alert. After all, this is the biggest purchase of your life.

Listed below are several things to be on the lookout for that could save you some money but most of all help ensure that you receive a fair and first-rate deal on your mortgage. Get you from application to closing without a hitch.

• LOAN OFFICER SHOPPING. Any professional shopper would be the first to tell you SHOP, SHOP, SHOP!!! This is the largest purchase of your life, so do your homework and locate the best mortgage broker in town. Don't simply ask your real estate agent who may be in partnership with a crook mortgage broker. All of the lending programs are similar. COMPARE and find the best lender.
• OVER BORROWING. The reasoning here is that when you apply don't fall victim to the thought that if get an interest only or an ARM you will qualify for a bigger house. Of course you can. Then when reality sets in, two to three years later, and you have the full load to pay plus a premium you may be unable to afford the house. Mortgage lenders are there to sell you things not to ensure you can make the payments.
• HIDDEN COSTS Interest rates aren’t the only costs associated with the loan. Normally there is a price associated with receiving a good rate. Get ALL costs in writing, up front, and compare to what the costs are at closing. Lenders rely on the stress factor knowing if they get you in the closing room and they pull a fast one you seldom have an option.
• WATCH FOR EXTRAS. Credit life insurance, biweekly payment programs, the list goes on and on. The majority of these is worthless but will make your lender happy because of the huge profits for them.

Most Mortgage Loan Officers are honest, hard working folks. Like any industry, there are always the small numbers that give the rest a bad name. Those are the ones with predatory practices that give everyone a bad name. Have a backup lender standing in the wings just in case something goes wrong at closing. Don't be intimidated into accepting something that is wrong.

Following these tips will help you greatly get from the application process to closing of the loan without any problems.