Monday, May 27th 2019


How to shop for a mortgage?

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4th Dec 2009 by Michael Haltman

There are a variety of ways to shop for a mortgage. One is to go to a mortgage broker who supposedly has many financing options available, and who will hopefully get you the best deal that is RIGHT for you. The definition of right has many components, and it will depend on things such as income, credit score, available cash, appraised value of the home, borrowers other debt, etc. Three years ago many of those things didn't matter, and the free flow of mortgages to people who should not have qualified helped lead us into the current economic crisis. Mortgage brokers at the time operated under a don't ask don't tell policy with things like no income check mortgages. These basically left it up to the borrower to tell the broker how much they made with a wink and a nod. Today, the criteria has become more strict and the choices more limited for the borrower. The mortgage broker will typically charge the borrower points for the loan when the deal closes. Anywhere from 1-3%. The next way is for a borrower to go directly to his local banks and apply. While this would take some of the national lenders out of the mix, real estate is local and these banks know the market. Finally, there are online sources that will develop a list of potential lenders after the borrower has entered the parameters of the loan.

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13th Nov 2009 by Tom Lindmark

The government makes it very easy to shop for a mortgage. The problem is most consumers don't know how to read the document that tells them the difference between various offers. What you need to look at is the Truth In Lending statement. At the top of this statement is a box that will tell you what the APR is for your loan. The APR is based on the rate for the loan plus all of the costs associated with the mortgage. If one APR is higher than another then normally you want to choose the lower one. Now here's the best advice I can give you. Find someone that will sit down with you and go through all of the offers you receive including theirs. If they won't explain to your satisfaction the differences and the one that's the best and why it's the best then don't do business with them. Keep talking to lenders until you get someone who can explain it so you feel comfortable. They are out there and when you find one, then you can sleep well that night.

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3rd Nov 2009 In Mortgage 2 Answers | 2063 Views
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