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a,k,a. 10 Things Other Lenders Don’t Want You to Know!
- Application fees are collected by lenders and brokers for one reason: to keep you committed to them. Having invested a non-refundable $300 (the amount typically charged), you’ll be less likely to walk away from a lender, even if the service is substandard. At Family Mortgage, we never collect any upfront fees, relying on our performance to keep you as a customer, not a “security deposit.”
- We don’t want you to pay for anything upfront…no money at all. With many lenders, the appraisal and credit report fees are charged upfront and credited back at closing in lieu of an application fee, but they serve the same purpose! We rely on the quality of our performance to keep you as a customer…not a couple of hundred non-refundagle dollars.
- While many lenders require an application (and associated) fee(s) and/or a completed appraisal report in order to lock a rate, at Family Mortgage, we will lock your rate any time and at no cost to you. The decision to lock a rate should be yours, not ours or any lender’s.
- When comparing loan quotes, remember to compare the identical rate lock period, as closing costs can vary for different lock periods.
- We know you want your loan approved quickly, which is why we make the speed of initial processing a top priority. Make sure any lender is committed to the same quick turnaround.
- Make sure you compare identical loan programs. While fixed rate programs are fairly uniform, adjustable rate mortgages ( ARM’s) feature a wide array of variables: index, margin, convertibility and caps. And caps come in many types as well: initial adjustment, subsequent adjustment, and life cap. While the terms of the ARM don’t have to be identical, the information is still important in evaluating the loan.
- Be certain you are comparing rate quotes from the same day. Rates change daily and ni a volatile market, more than once daily. The best offer from a given lender on one day may not be available from that same lender the next day.
- Your total closing costs – shown on the “Total Estimated Closing Costs” line of the Family Mortgage Good Faith Estimate – do NOT include prepaid interest, insurance escrow, or tax escrow. Meaning that the closing cost figure that we quote is NOT the dollar amount of the check required at closing. Many lenders deliberately muddy the estimate to make this distinction unclear. Clarify!
- We guarantee our closing costs because it’s the right thing to do. You would never buy a watch that costs “somewhere between $300 and $500.” You want a firm price and that’s what we deliver.
- Escrow accounts allow the mortgage holder to pay your taxes and insurance on your behalf. And because your tax escrow is based on the city and county tax bills and the due dates for those municipalities and NOT the lender, the dollar amount of the escrows should NOT be a factor in your loan decision. Same with insurance premiums, which will vary based on the amount of insurance you choose to carry, but will be the same regardless of the lender.
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This is a printable worksheet for you to use when comparing loan to make sure your comparing apples to apples.
Lenders can be quite evasive on fees and Points, some hide them in higher rates while others give a low rate then inflate the closing cost. This worksheet will help you get the real numbers so you can make a true comparison. Get the worksheet here!
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A thief goes through trash to find discarded receipts or carbons, and then uses your account numbers illegally.
A dishonest clerk makes an extra imprint from your credit or charge card and uses it to make personal charges.
You respond to a mailing asking you to call a long distance number for a free trip or bargain-priced travel package. The catch! Charges you didn't make are added to your bill.
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