Fight For Your Money by David Bach

Author:David Bach [Bach, David]
Language: eng
Format: epub
ISBN: 978-0-7679-3152-6
Publisher: Crown Publishing Group
Published: 2009-11-15T00:00:00+00:00

The answers you get to these questions should give you a sense of whether the mortgage professional you're talking to is the right one for you. Chemistry should count for something, too. You're going to be discussing a lot of sensitive personal information, so if you don't feel comfortable, the relationship is not going to work.

If you're satisfied by the answers you get, ask the candidate for a ballpark estimate of the kind of rate and terms their institution would be willing to give you. And don't be shy about pressing for details. Ask all the questions listed on page 211.

This shopping process is a good way to screen out sleazy lenders and abusive loans. Good lenders will give you clear explanations. Predators, on the other hand, never answer your questions clearly. So if you come away from a meeting feeling confused, even if you really like the lender or mortgage broker, don't do business with that lender—keep shopping.

Most likely, each lender will present his proposals in a slightly different way. As a result, you may find it hard to compare competing mortgage offers. One way is to match up each mortgage's APR (annual percentage rate), since that figure takes into account not only the interest rate but also any interest you will be expected to prepay (called “points”), as well as fees and closing costs.

For an even more accurate comparison, there are a number of user-friendly mortgage evaluators available online. MyFico.com has a “Which Is the Better Loan?” calculator (www.myfico.com/LoanCenter/Mortgage/Calculators/LoanEvaluation.aspx) that will compare the overall costs of any two mortgages and tell you which is the better deal, while Tcalc.com has one that will compare three loans at once (www.tcalc.com/mortgage-comparison-calculator.html).

Once you've figured out which lender's offer is the best, ask that lender for a preapproval. If, after going through the rigorous preapproval process, you're told that you don't qualify for the mortgage they originally offered you, continue to shop around before you accept one with less favorable terms.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.