A home mortgage involves a very large amount of money - and you will be well-served if you take your time and do your homework before you commit to a particular lender.
- Shop around. You can request mortgage quotes from numerous financial institutions in advance of paying any application fees. You will likely find variation not only in the interest rates quoted, but also in the closing costs for the loan.
- Determine the closing costs. If the lender estimates closing costs, including points and fees, or fails to describe certain costs, ask for additional details - most will provide more information if they believe they may get your business, and those that won't probably don't deserve it.
- Don't get pressured. If you are pressed to sign a loan application, to borrow more than you need or can afford, to immediately commit to a loan, or are urged that interest rates may immediately skyrocket, be suspicious of the lender. In most case, lenders who apply this type of pressure do not have your best interests at heart.
- Don't sign anything you don't understand. If you need help from a lawyer or housing counselor, ask for a copy of the contract and have it reviewed. Don't sign a contract which contains blank spaces "to be completed later".
- Don't make false representations on your mortgage application, even (perhaps especially) if the loan officer tells you that "it's no big deal". Report any lender which urges you to put false information on your loan application to the FTC.
- Don't buy credit insurance you don't need. If you need or desire credit insurance, consider seeking price quotes from insurance providers other than your lender so you know if your lender.
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