Make Sure There are No Problems at Your Closing.

Everywhere you look, you will be bombarded with ads advertising that this particular mortgage broker has the best rates and terms for you. Frankly, many of these ads are just to draw you in and then you learn the terms are not what they advertised.

If you want to avoid being taken in by such come ons, be sure you know the lender well. If you don\’t know the lender that offers the best rate, you can find out about it. You should do this by talking the Better Business Bureau, or the government banking commission.

Another thing you need to do for a problem free closing is to pick a lender that specializes in your type of loan. Discover how long they have been in business and how long the broker you will be working with has been with the company. Working with a reputable, experienced broker is the single most important way to steer clear of headaches at closing.

Do a lot of research. Yes, it is hard to separate the wheat from the chaff, particularly on the internet. Read about the different types of mortgages available and what the payment terms are. The best thing is to make a complete list for comparison purposes.

Another thing to consider is who the rates you are quoted apply to. Often the brokers will advertise great rates, but it turns out they only apply to top rated borrowers, and other borrowers pay more. If your credit score is not the highest, you may pay a premium above the advertised rate.

After you have a compilation of rates, you can make your comparisons. Don\’t forget the old saw that if it seems too good to be true, it most likely is. You are sure to find some differences in rates, but if one lender is much lower than the others, this should be a red flag for you.

Don\’t be forced. If a broker does not take his time to explain, and give you time to think about it, cross him off your list. One sure path to headaches is to not understand the loan proposal in the first place. Do not deal with any broker who is not able to answer any and all questions.

After you have all the terms agreed upon, get a written confirmation. Check that all terms are in the written agreement, not only your rate and points. Confirm that the index on an adjustable rate mortgage is in the agreement. Check to confirm that the terms of any lock in period are in the agreement. Make sure this document is on the firm\’s letterhead and is signed by a representative of the organization. Most headaches in home loan closings are the result of issues that are not confirmed in writing ahead of time.

When you receive the written agreement, read it and understand it. Don\’t let the lender to put in legal language that you do not understand. If it does not seem to agree, have the wording changed so you protect your interests. If the broker cannot or will not do that, go back to your list and find a different lender.

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