FINDING THE RIGHT HOME LOAN FOR YOU
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NEED TO KNOW - MORTGAGE INFORMATION
FINDING THE RIGHT LOAN FOR YOU
Your personal situation will determine the best kind of loan for you. By asking yourself a few questions, you can help narrow your search among the many options available and discover which loan suits you best.
Do you expect your finances to changeover the next few years?
55. WHAT IS THE BEST WAY TO COMPARE LOAN TERMS BETWEEN LENDERS?
First, devise a checklist for the information from each lending institution. You should include the company's name and basic information, the type of mortgage, minimum down payment required, interest rate and points, closing costs, loan processing time, and whether prepayment is allowed.
Speak with companies by phone or in person. Be sure to call every lender on the list the same day, as interest rates can fluctuate daily. In addition to doing your own research, your real estate agent may have access to a database of lender and mortgage options. Though your agent may primarily be affiliated with a particular lending institution, he or she may also be able to suggest a variety of different lender options to you.
56. ARE THERE ANY COSTS OR FEES ASSOCIATED WITH THE LOAN ORIGINATION PROCESS?
Yes. When you turn in your application, you'll be required to pay a loan
application fee to cover the costs of underwriting the loan. This fee
pays for the home appraisal, a copy of your credit report, and any additional
charges that may be necessary. The application fee is generally non-refundable.
RESPA stands for Real Estate Settlement Procedures Act. It requires lenders to disclose information to potential customers throughout the mortgage process. By doing so, it protects borrowers from abuses by lending institutions. RESPA mandates that lenders fully inform borrowers about all closing costs, lender servicing and escrow account practices, and business relationships between closing service providers and other parties to the transaction.
For more information on RESPA, visit the web page at http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm or call 1-800-217-6970 for a local counseling referral.
58. WHAT IS A GOOD FAITH ESTIMATE, AND HOW DOES IT HELP ME?
It's an estimate that lists all fees paid before closing, all closing costs, and any escrow costs you will encounter when purchasing a home. The lender must supply it within three days of your application so that you can make accurate judgments when shopping for a loan.
59. BESIDES RESPA, DOES THE LENDER HAVE ANY ADDITIONAL RESPONSIBILITIES?
Lenders are not allowed to discriminate in any way against potential
borrowers. If you believe a lender is refusing to provide his or her services
to you on the basis of race, color, nationality, religion, sex, familial
status, or disability, contact HUD's Office of Fair Housing at 1-800-669-9777
(or 1-800-927-9275 for the hearing impaired).
To ensure you won't fall victim to loan fraud, be sure to follow all of these steps as you apply for a loan:
Be sure to read and understand everything before you sign.
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