1. Get your credit report before you apply. This report is available from the major credit reporting agencies (Equifax, TransUnion & Experian) and will be used by your lender to review your mortgage application. Make sure any defaults, mistakes, or outdated information are corrected before you start shopping for a mortgage.

2. Shop aggressively. Contact a mortgage broker who has access to several lenders and can quickly compare rates to find the best program for you. 

3. Choose your mortgage rates and payment schedule. A fixed program keeps the same interest throughout the life of the loan. An adjustable rate mortgage typically starts out with a lower interest rate but can change up or down after a certain period of time. CLICK HERE to see home loan programs available to you.

4. Go over mortgage costs carefully. Different lenders will often call the same cost by different names. Pay particular attention to loan closing costs, which are quoted once you are approved for a mortgage. These will differ from one lender to the next and can add considerable expense to obtaining a loan. Expect to pay anywhere from 3 to 5 percent of the overall cost of the mortgage.

5. Review your good faith estimate in detail before signing on for a loan. Lenders are required to provide you with a detailed breakdown of all costs associated with the mortgage. Good faith estimate: A disclosure required under the Real Estate Settlement Procedures Act (RESPA) that must be given to all mortgage loan applicants at the time of application. The disclosure is an estimate of all settlement charges likely to be incurred at closing.

6. Lock in a rate while you complete your mortgage application. You cannot close a mortgage loan without locking in an interest rate. Get your rate lock in writing, in the form of a loan commitment from the lender. A rate lock is a legal commitment between the lender and the borrower. The lender promises a loan at a specified interest rate. The borrower sometimes promises to pay certain points and fees (especially if the lock is for more than 30 days). The borrower and lender (and mortgage broker) agree to do their best to close the loan on or before a specified date. If the loan isn't closed by the deadline, the contract expires. Locks typically last for 30, 45, 60 or more days.

   Whenever mortgage rates are in an upward trend, rate locks become increasingly important. You take a risk if you apply for a loan and decide to float to not lock in a rate. But the risk isn't huge because rates fluctuate from day to day and even hour to hour.

   Be aware that rates fluctuate, unscrupulous brokers have been known to tell borrowers that they have locked in a rate with a wholesale lender when they haven't. If rates drop, these dishonest brokers can secretly lock at the lower rate and reap a covert profit after the loan closes.

Andre Plessis

Andre Plessis
"The Mortgage Guru"
"A Mortgage Professional whose primary goal is to provide the expertise, guidance and skills necessary to obtain the best mortgage to meet your personal needs".
View Client Testimonials

P.S. If you are at all intimidated or unsure about the mortgage process if you don’t understand how to evaluate your options in getting a mortgage loan our 15 key questions will help you feel comfortable that you are making the best decisions. Also if you are in the process of refinancing your home with anyone, CALL ME and I will let you know if you are being offered the best loan option based on market conditions and your financial situation.

Copyright 2005© Apply-Free.com