Before signing for a
new mortgage loan, it is important to compare all aspects of mortgage you are considering. Many homeowners make the mistake of only comparing the interest rate or annual percentage rate. Using these rates does not give you an accurate picture of the total cost and can cause you to overpay for a new mortgage. Here are tips to help you find the best mortgage loan.
Before applying for a mortgage from any lender, you should request a copy of the good faith estimate of loan you are considering. Lenders are legally obliged to give this a good faith estimate upon receipt of your application, however, most lenders will this document upon request. If the mortgagee refuses to provide this document you should find another lender.
Using a good faith estimate
When you shop for a new mortgage should take into account any fees, points, terms and closing costs for each loan offer. The good faith estimate itemizes these charges and says that compensation is paid. Remember that the law protects you when you take out mortgages from unscrupulous lending practices. If you think that the lender is withholding information or pressure in the loan that you do not want to find a different lender.
Keep in mind when shopping for a new mortgage May be required to pay a fee for the request. Before you pay this fee to ask the lender if the fee is refundable if you do not borrow from that lender. Pay attention to these fees when shopping for a new mortgage and potentially could save yourself several hundred dollars. You can learn more about shopping for the best mortgages, including common mistakes to avoid by registering for a
free mortgage guide.