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I. Ten Ways to Improve Your Mortgage ExperienceGetting a new mortgage can be
a stressful experience, or a satisfying one, depending on the circumstances. We're
pleased to offer some tips to make your experience getting a loan as easy and
positive as possible. Take some time to check out your mortgage retailer
if you aren't familiar with them. You may want to contact your local Better Business
Bureau, or find out if your retailer is a member of any recognized trade associations.
Since some states do not require a license to be a broker, its important for you
to research your retailer's track record and find out if they are legitimate.
Don't fall for a deal that sounds too good to be true. Offers that are far below
the rest of the market or impossible service promises are generally misleading
at best. Some of the great terms quoted in advertisements may be available only
to a very limited class of borrower, and won't apply to the majority.
Do lots of research to find out what is normal for the type of loan you are getting.
Don't take a lender's word for what is standard as far as rates, points, fees,
and commitment periods. Instead, do compare lots of outlets to get a better picture
of what to expect, and will recognize a good deal or a mediocre one when you see
it. Don't be afraid to ask questions. If your lender says something you
don't understand, make them explain it to your satisfaction. If they can't or
won't do so, start looking elsewhere. Make sure to get things signed and
in writing. Though some people are honest and can be taken at their word, you
should always have a writing to back you up in case of a dispute. Remember, oral
agreements concerning real estate are not easily enforced and are often worthless.
Don't sign anything unless you understand it. No matter how standard your
lender tells you a form is, you should make certain you know what you are agreeing
to by signing. Don't hesitate to get outside help from a lawyer if you need it
- the money spent on legal representation is a small price to pay to ensure you
actually get the terms you think you are agreeing to. Ask about how much
experience the mortgage company has in loans like yours. Find out how long they
have been in business, and how many similar transactions they have handled. Working
with an experienced lender can be a big plus. If you are coming in without
the benefit of a referral from a friend, family member, or co-worker, ask for
some references. You will likely only end up talking to people who had good experiences
with the lender, but it is better than nothing. Make sure "no points"
actually means no points. Points can be either discount points to give you a lower
rate, or a percentage-based origination fee. Often "no-point" loans
actually are one-point loans, with the one point being the origination fee. If
this is the case, make sure to take this into account when you are comparing with
other loans. Be sure to ask about prepayment penalties and early termination
fees. Some adjusted rate mortgages carry terms that impose a high financial penalty
for early refinancing. These loans can have you paying more than you bargained
for if you aren't careful.
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