Interpreting Mortgage Quotes and Closing Costs
A Home Buying Article Contributed by Robert Scalia
How Do You Go about Finding the Right Mortgage Quote for You?
Seeking and finding the perfect mortgage quote for you can be quite a shell game. When you are shopping lenders and various loan options, you can't just look at the rate and payments.
The first thing you'll need to do before considering any mortgage quote is to figure out the type of loan and term that you want. Then you must ask yourself if the terms the same? Is the type of loan the same, and is an adjustable rate mortgage or a fixed rate mortgage better suited for you.
The fact of the matter is that you really have to educate yourself on all of the options available and decide what mortgage quote is best for you before jumping in and buying a home.
Before You Settle on a Mortgage Quote, Have an Idea of Who You Will Be Dealing With.
Never forget this when you are searching for a mortgage quote: Mortgage brokers and loan officers are salesmen.
They will always be willing to offer you a mortgage quote with the lowest interest rate and monthly payment - whatever it takes to get your business.
But you must beware. These guys will then include points to lower the mortgage rate, which in turn will increase the closing costs. They may also quote you an A.R.M. instead of a fixed rate mortgage just to lower the rate. And if they're really sneaky, they might even hide the settlement costs by burying it deep in the loan payments.
Keep in mind that when it comes to closing costs, lenders are required to provide you with a good faith estimate (GFE) which will clearly spell out the terms of the loan and all the closing costs associated with the purchase of your home. This is a requirement that was first devised by the Real Estate Settlement Procedures Act of 1974,
If any lender does not provide you with the estimate or is doing everything in his power to avoid the question, say goodbye to that person right away - no questions asked.
Once you have received the GFE, you'll want to review the details in order to be sure that the estimates are based on actual current data. Lenders tend to be a little behind when it comes to current recording fees and title charges when it comes to a particular town.
When It Comes to Your Mortgage Quote, How Will You Know When It's Time to Wrap It Up?
You'll know when you've done your homework.
It's important to take the time to educate yourself - after all, your tax dollars have helped pay for the U.S. Department of Housing and Urban Development. Visit their website and get all the information you need.
Their information concerning mortgage quotes and closing costs will be unbiased and will only help you to make more informed decisions about what type of mortgage is best suited to fit your needs.
