What to Expect from the Mortgage Company
A mortgage company is a service industry. It is important to
remember this. Many people find the mortgage approval and
home buying process so intimidating that they forget that
they should shop for a mortgage company that they are happy
with. A mortgage company should be happy to quote you
specific interest rates, and let you know when you should
lock in these rates. They should also tell you what the
specific costs are in acquiring a loan. This means a good
faith estimate on closing costs, discount and origination
fees that must be paid and any other costs that may be
involved when purchasing a home.
The mortgage company should be upfront about all of the
technical details of the loan. They should let you know if
there is any penalty for pre-payment, the amount of money
required for a down payment, and what documents you will
need to provide for loan approval. The mortgage company
should also let you know what guidelines you must meet to
qualify for a loan with them. This will include
credit history,
your income, employment history, your assets and liabilities
and any other specifications they require.
Many states offer specialized home buying programs. The well
established home mortgage company should be familiar with
the various programs in your state, and provide you with
information about these. If you believe that you may qualify
for one of these programs, the mortgage company should help
you complete any necessary paperwork and determine if you
qualify.
The mortgage company should be willing to tell you how long
it will take to process the loan, and if they guarantee it
will be processed by a certain date. They should also
provide you with any information that may slow down the loan
processing process, and their method for dealing with
problems.
After the Loan Closes
Once you close on your mortgage, you may never see or think
of your mortgage company again. You make your monthly
payment, and sometime, years down the road, you receive the
title to your home. While this happens occasionally, it is
not as common as you may think. You may move, and decide to
sell your home. Interest rates may drop, making the decision
to refinance attractive, or, you may have trouble making
your monthly payment due to job loss or medical problems.
Before selling your home, you must know how much you owe on
it. Your mortgage broker should be able to determine the
balance of the loan and provide you with this information
easily. If you decide to refinance, consider staying with
the same mortgage company. Often, the mortgage company will
negotiate lower closing fees or no closing costs if you
refinance through the same company that currently holds your
mortgage.
Finally, if catastrophe strikes and you are unable to make
your mortgage payment, it is imperative that you get your
mortgage company
involved early in the process. They can provide you with
resources for help in making or delaying payments, and let
you know if foreclosure is imminent. As tempting as it is to
bury your head in the sand at this time, remaining proactive
can help you hand on to your home, or allow you to sell your
home before foreclosure proceeding begin.
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