Residential Mortgage Application: Avoiding a Bad Deal

When you are filling out a residential mortgage application, you are going to want to make sure that you avoid agreeing to a bad deal. Here are a few things to consider about avoiding a bad deal on your mortgage.

Terms

Before you agree to a mortgage loan, make sure that you agree to the terms. Ask the lender to explain the terms of the loan to you and be sure to read all of the loan documents. You do not want to agree to a loan thinking that it has a fixed rate when it is actually an adjustable-rate mortgage.

Interest Rate

Many people focus on the mortgage payment instead of the interest that they are going to be paying. Even if the mortgage payment seems reasonable to you, you want to make sure that you understand what the interest rate on the loan is. You need to do some research to find out exactly what lenders are charging in the market today. This way, you will avoid agreeing to a bad deal on the interest rate.

Closing Costs

You should also compare the estimate of closing costs to estimates from other lenders. Make sure that your lender is not charging you any more than it should be charging.

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