How to sidestep surprise mortgage costs
We’re all bombarded by countless offers for the best deal when it comes to obtaining a home loan. This one promises the lowest rate. That one touts the lowest fees. Another boasts price guarantees. Unfortunately, claims that seem too good to be true may be just that – not the whole truth.
So how can you untangle fact from fiction and get key facts about loan options that may be right for you?* By tuning out the bells and whistles, tuning in to important details and turning to a trusted resource, you are in a better position to uncover hidden costs and concerns long before you reach the closing table.
Buying a home may be one of the most significant purchases of your lifetime, so you want to ensure that you choose a reliable mortgage professional who will help you protect your best interest. One of the first defenses against being misled in your home loan search is to work with an experienced industry expert from a company that has a solid history and reputation.
This trusted advisor should help you make informed decisions, walk you through the home loan process and offer you a variety of personalized home loan options. So, if the loan representative doesn’t make you feel comfortable enough to ask questions or doesn’t take time to answer the questions you do ask – move on to someone who will.
Besides helping you protect your interest, your lender also should help you protect your interest rate by explaining your options for locking it in. Make sure that the rate lock allows ample time for loan processing and get terms of the rate lock in writing. Some lenders only offer rate protection for a week or 10 days, which means the rate lock could expire and leave the interest rate vulnerable to changes before the loan process is complete. Reputable lenders will frequently lock interest rates for 45 days, or more in certain circumstances.
* This article is for informational purposes only and should not be construed as a substitution for obtaining advice from qualified mortgage professional(s) regarding your particular situation.
Sarah Davis is the sales manager of the Avon office of Countrywide Home Loans, a national leader in residential finance. The office is located at 30 Benchmark Road, Suite 209, and home loan experts are ready to assist customers at (970) 748-5018. Additional information about the company’s full array of products and services is available online at http://www.countrywide.com
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