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Frequenly Asked Questions
Why are there so many different advertised rates? Many times, an advertised rate is used as a trigger to get you to call. Rates are tied closely to mortgage backed securities, but change constantly. But, rates dont take into consideration your specific wants, needs, and desires. And dont be fooled - that loan officer that answers the phone when you call about the low rate you saw advertised has a speech all ready to address any question you may have.
Should I trust what I see in regards to online lending? Be afraid. Be very afraid. When dealing with an online mortgage company, and I use the term company loosely, you have no idea their experience level, their knowledge of state and local requirements, their ability to come through with what they propose, the list goes on and on. Just about anyone can develop a mortgage website and promote great rates. You can get stuck with an offer that seems too good to be true and end up with nothing at the closing table.
Whats the right loan program for me? Until we know your individual goals and needs we wouldnt dream of committing you to a specific loan program. Each program offers different benefits and controls. Each program is designed to meet specific requirements. There are more than 1000 programs on the market today. Dont be roped into believing one size fits all.
QUESTIONS YOU SHOULD ASK YOUR LOAN OFFICER:
You are getting ready to trust this individual with the largest asset you might have. Make sure you know who you are dealing with. The questions below can help you evaluate the
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What resources do they bring to the mortgage lending process?
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Do they charge for a pre-approval? Many times this tactic is to hold you hostage to work with them. Its your money, its your choice of who to work with.
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What kind of rates and products do they offer and from whom?
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How many transactions do they generally close on a monthly basis? A good loan officer is busy for a reason; they take care of their clients.
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What does the team working for you consist of?
The Borrowers Bill of Rights
A borrower has the right:
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To clear and forthright explanation of the terms and conditions of the loan.
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To timely and truthful disclosures regarding the rates and costs of the loan.
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To accurate disclosure of final annual percentage rate and amount of regular payments at the time of loan closing/ settlement.
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Not to be subject to deceptive marketing tactics
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To obtain credit counseling prior to closing on the loan.
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To have a lender consider a borrowers ability to repay the loan before such credit is extended.
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Should receive an identifiable benefit when charged a fee or a higher interest rate to refinance a loan.
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To not be subject to a requirement that he or she finance any portion of points or fees.
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To decline credit insurance in connection with a loan.
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To a fair and equitable resolution to any disputes related to their loan.
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To have favorable information reported to credit bureaus on a timely basis.
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