Be on the look out for a lock in rate guarantee from a mortgage lender
Typically, it takes about 45 days until the actual closing date, although sometimes a delay of up to 60 additional days can occur. Look for lenders who will offer you a lock in rate for at least 60 days. That means that the rate you saw on day one, will be the rate you see at the closing, regardless of the housing market. Look on the internet and here on my site for lenders who offer a free lock in
Be cautious however, that the lender does not just add a fee to your total home loan cost for the lock in protection.
Understand Your Right To Recession
If for whatever reason, the deal goes south at the actual time of closing, you can always consider starting over. For the most part, if you reject the deal after you agreed on it, you must notify your mortgage lender, in writing why, this must be done within 3 days, the sooner the better. Then, the mortgage lender, will have 20 days from that date to refund your fees in full. This is your right.
Check Your Costs Carefully, Especially if you have little equity in your home.
Generally, most lenders require that you have at least 10% equity in your home also referred to as a LTV of 90% or less. However, there are plenty of lenders, especially if you look on the internet, that are willing to work with you with as little as 5% equity in your home. Again, there is usually a cost associated with this, this time it comes in the form of higher insurance costs on your mortgage.
In these cases, if you have a loan issued by Fannie Mae or Freddie Mac, you may automatically qualify for these low LTV loans. It is not necessary but helps.
Make mortgage interest rate comparisons.
Be sure to do thorough research and compare a lot of different rate quotes from different lenders. The internet makes this easy. Most websites like mine have advertisers for mortgage refinancing companies that you can easily get quotes from. Make sure the terms and the length of the home refinance are acceptable too. Do good research on the refinance companies background, current financial position, and all things associated. Preferable is to deal with a lender who has an office located near you so you can have face to face interaction if need be.
Do Not Let Closing Costs Fool You
Mortgage lenders sometimes advertise “No closing” or “Low Cost” refinance options. Beware, sometimes these lenders make up for these costs by adding extra fees and costs into the total amount of your loan, which is often overlooked or ignored due to the low sum.
-M Petrone


Subscribe via email

Enter your email address:

Delivered by FeedBurner