BEST ANSWER
1. Shop, Shop, Shop
With so many potenial lenders to choose from and so many different types of mortgages available, the first rule to to remember is a simple one; SHOP, SHOP, Shop. every bank, every savings and loans and every other mortgage institution has its own set of rules and criteria. The variety of mortgage available to you today is mind-boggling. Don't panic simlpy take time to shop around until you are sure that the deal you select is the best one for you.
The second thing to remember is that, while a deal may sound great, you have to take the time to check the actual numbers before you sign on the dotted line. Plan to give your calculator (or some's calculator) a good workout. don't forget that mortgage interest payments are tax-deuctable, while principal repayment are not. You have to calculate your tax savings under each arrangement, and include those in the comparison. It is only by doing the mathematicis, or having them done for you, that you can understand how much you will actually pay and which deal works out best.
2. Computer Mortgae Networks
There are two new business that have arisen to make your shopping easier and to help you find your way through the variety of the mortgage market. the first are the computerized mortgage orgination networks. these are usually located in real estate offices. Your application and relevant financial data are fed into the computer terminal. and a mortgage commitment can someetimes be received in as little as 30 minutes.
3. Mortgage Consultants
The second new business is the mortgage consulting business. Mortgage consultant conusel the buyer and proess his or her application for lenders who subscribe to the service. Here the objective is help, not speed; the mortgage decision is usually not any quicker than if you had applied yourself. Mortgage networks and consultants work in the same way as do travel agents. they do not charge a fee to the borrower whe uses their service. Rather they are paid by the lender for performing services that the lender can now avoid. the borrower pays the syabdard fees that would have to be paid to a mortgage lender. including appraisal of the property (usually about $150 to $200) and a cedit check (about $25 or $30).
I would suggest that isf you decide to use the services of a mortgage consultant or mortgage network, you compare the mortgage offered you against other lenders by doing some legwork of your own. Be careful that the interest rates offered to you by these new business do not include and added amount to pay for their services. In other words "SHOP, SHOP. SHOP."
4. Mortgage Reporting Services
Finally, you should check to see, if mortgage data week-lies or mortgage reporting services, which have been popping up all over the country, are available in your area. The best of these are definitely worth the expense (ssubscription costs begin about $25). These publication tell you where the mortgage money is, the interest rates being offered, and the qualications you must meet for each listed lender. they give you the details on additional charges, including points, orgination fees, applicaton fees and maxium amount of the loan. they will save much legwork that you would otherwise spend in checking interest rates and finding out whether or not you quailfy for the cheapest loans.
SHOP, SHOP, SHOP
Ransom PM
ransom@michigan.usa.com
http://ransompm.blogspot.com
Wed Oct 21 2009, 05:49
Fair Housing and Equal Opportunity