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Enquire before signing a mortgage loan

There could always be chances that you might realize or face another kind of a trouble in the process later, something of which you were not informed and therefore were not aware of. It is always considered best to remove any kind of doubts you have in your mind by asking a few important questions related to the mortgage loan and agreement, so that after the deal is signed, there is no way anyone could persuade you to spend any extra amount of cash of efforts further. In order to save yourself from any kind of trauma later, make sure to decide on some questions, the answers to which you are vaguely unsure of.

Beginning with the costs and charges, always make it a point to ask your mortgage broker as to how much of money you will be spending right from the starting of signing your application till the closing of the deal. This includes all kinds of expenses, such as application fee, closing fee, fee and expenses required for your legal advisors, rate change fees and any other fee amount which are applicable to the loan you are making. This will give you a clear picture of the estimated budget and the amount that you are required to spend during making a deal for the mortgage loan, and will also be able to make further decisions if someone tries to pester you into giving away or spending more unnecessary charges and costs. While you are discussing the costs and charges for your mortgage loan, do not forget to ask your broker about the offering of a rate lock on your loan. Sometimes it so happens that there is no rate lock applicable, yet you are charged for it as an extra amount. Beware of such malpractices and remember to ask the broker about the applicability of a lock in, because with a lock in, you have an added advantage of opting for fixed interest rate in case there is a speculation of the interest rates rising in the economical market. In contrast, you could even opt for variable interest rates in case you feel that the interest rates will fall lower in the coming times than the current interest rate that is applying for your loan.

Also, there is an Annual Percentage Rate for the different types of loans available from different lender. The APR on a loan helps you to compare the different types of loans accurately. Ask your broker to get you the APR on the various loans available and compare it with the APR on loans from different other competitors. The APR includes all the details of the exact fees and costs and charges that you will be asked to pay, and therefore comparing the APR’s on the loans from different competitors will give you a clear estimate as to how much you will be shelling out on costs and how much of money will you actually be able to save on a particular loan as compared to the other. A Good Faith Estimate is also an aspect very similar to that of an APR on a loan, wherein you are required to pay a certain amount of fees at the application of the loan and closing of the deal. This is guaranteed by GFE and ensures that the lender sticks to and abides by the GFE at all times. A Good Faith Estimate is worthless without the consent and support of the lender, thus, a guaranteed GFE is beneficial in deciding on a particular mortgage loan before you end up signing the deal.

After considering the above facets, and once you are ready to read and sign the paperwork and fina,lise the deal, another important point to be kept in mind is the loan processing time. Remember to ask the broker about the amount of time you will have to wait for the funds to reach you, and only if you find the answer genuine and according to what you had expected or wish to wait for, you can go ahead signing the loan paperwork at ease and comfort. In the perfect situations and cases, always opt for lender who guarantees to pay you the funds as quick and immediately as possible, just as the paperwork is signed. This way, you receive the satisfaction that your funds will not only reach you early but will also save you from adjusting and making changes further due to the dynamic culture of the economy. Once you are done asking questions regarding such basic aspects about your mortgage loan, you are completely free and ready to sign the deal and finalize it without blinking an eye. It is important to question your mortgage brokers about such points because it will save you from any kind of an obstruction or delay in receiving your funds, and will save you from making any unnecessary expenses in the future.

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