Yale Roth M.A., M.Ed

When applying for a mortgage people tell me it’s almost like buying a car.

I cringe when I here this as I know there are many good, honest and reputable loan officers and mortgage brokers out there providing top flight mortgage services.

Unfortunately, there are also a number of mortgage brokers who either don’t know what they’re doing or are just plain unethical when providing mortgage services.

Here are 3 tips you need to know so you can navigate through the mortgage services process smoothly and without paying more than you should.

1. Give the loan officer or mortgage broker the following information:

a. If it’s a new home purchase, give them the purchase price – if the transaction is a refinance, give them an accurate estimate of the home’s value.

b.  down payment amount (if it’s a new home purchase)

c. your estimated credit rating (i.e. excellent, good, fair, poor)

d. your annual household income

e. where your  down payment money is coming from (if it’s a purchase)

f. the type of property you are buying (i.e. single family home, condo)

With this information, the loan officer or mortgage broker will be able to give you an accurate mortgage rate quote.

2. Next, after getting the mortgage rate quote, pin down from the loan officer of mortgage broker the TOTAL lender fees.  This includes underwriting fees, processing fees, discount points, etc.  Get the BOTTOM LINE figure to be paid to the bank for the mortgage rate.

3. Get a Good Faith Estimate of closing costs.  Look at letter “A” on page 2 of the GFE.  It  says “Your Adjusted Origination Charges.”  These are the total bank fees.  Now look at page 1 of the Good Faith Estimate.  Towards the top of the page it reads, “The interest rate for this gfe is available through …”  And there is a box for a date.  There is a date in there.  See how long the rate is being offered for.

With the Good Faith Estimate you have 2 important pieces of information that will help you through the mortgage services process: the mortgage rate quoted and the amount the bank or mortgage lender is charging you for the mortgage rate.

Remember, get that information in writing.  Talk is cheap.  Loan officers and mortgage brokers say a lot of things.  Pin them down with information that can be put in writing and that can hold them accountable.

With this, you will avoid mortgage bait and switch tactics and make the mortgage services process go smoother and a lot easier as you will know what to expect.

Related Posts:

• Mortgage Questions – “How Much Money Is My Mortgage Company Making?”
• Mortgage Questions – How Do I Calculate My Closing Costs For My Mortgage Refinance?
• Are You Getting Ripped Off By Using A Mortgage Broker To Refinance Your Mortgage?
• Mortgage Questions – “What’s The Difference Between A 30 Year Fixed Mortgage And A 10 Year Fixed Mortgage?”
• Mortgage Rate Questions – “Are The Mortgage Rates The Same For A Cash Out Refinance?”