DID YOU KNOW...

1. APPLICATION FEES ARE NOT NECESSARY
There are only two fees that are customary when it comes to mortgage loans, broker fees and processing fees. Any other fee is what we refer to as a “junk fee”, meaning that it is not a necessary fee. Some lenders will charge administrative, courier and document preparation fees, none of which is necessary.

2. SEVERAL LENDERS CHECKING YOUR CREDIT DOES NOT HURT YOUR CREDIT
You may have heard that you should not have anyone else check your credit so that it does not get reported to your credit score. The truth is that you are allowed to have up to five credit checks from mortgage lenders without any reflection on your credit score.

3. RATES ARE NEGOTIABLE
The actual rate that you receive can vary greatly depending on the type of loan that you need. For example, it is common that a 15 year rate is less than a 30 year rate. Which rate is best? It depends on which plan is best, depending on your needs.

4. RATES DON'T NEED TO BE LOCKED DOWN
With today’s fluctuating rates it is important to have a lender be flexible with your rate. If the rate drops even a fraction of a percent it can make a big difference over the life of your loan. During the loan process, make certain that your lender locks in your rate only to protect you from it going up. Should the rate drops, during your loan process, your lender can readjust your mortgage to allow savings to be passed on to you.

5. WHEN BANKS COMPETE, YOU DON'T NECESSARILY WIN
When banks quote their rate, they will many times quote the retail rate. Your lender should have the opportunity to quote the wholesale rates which usually reflect a savings.

6. YOUR PRIVACY IS A CHOICE
Many lenders will utilize a process known as ‘outsourcing’, where they will hand your loan information off to third and fourth parties. Your financial data is your livelihood and needs to be protected. You should request that your loan information is not outsourced so as to protect your privacy.

7. PMI IS SELDOM NECESSARY
PMI or Private Mortgage Insurance is something that is tacked onto your loan if you are financing more than eighty percent of the value. This money is typically wasted and is rarely required. Your lender should offer you options that will remove the PMI from your payment, which can be sizeable.

8. A GOOD MORTGAGE COMPANY HAS THE ABILITY TO AUDIT YOUR ACCOUNT
Your lender should be like a financial counselor offering you options that will save you money and allow you to get the best loan for you. There are many programs which will trim years and thousands of dollars off of your loan. Your lender should be looking out for your interest.

9. BANKS GO BY YOUR GROSS INCOME AND NOT YOUR NET INCOME
Banks will look at your gross income (the sum of what you make before taxes) and not your net income (what you actually receive on your paycheck. A good lender will make certain you understand how much loan you can actually afford.

10. YOU CAN BACK OUT OF YOUR CURRENT LOAN
If you feel that your lender has not offered you all of your choices you can actually back out of the loan process up to the actual day of closing and choose another lender. If you have just signed a refinance loan, you actually have three days after you sign to back out and choose a different lender. KNOW YOUR OPTIONS