|
How
To Get The Best Loan
Find
a professional loan officer and they will get you the best
mortgage program and rate to fit your situation, plans, and
goals.
Ask
your friends, your real estate agent, your CPA, etc., for the
name of a loan officer they would recommend and who they would
not recommend. Watch
out for loan offers from someone who calls you on the
telephone or comes to your door without an invitation.
Throw away junk mail from companies offering to arrange
a loan for you. Advertisements promising
easy money should be viewed with concern.
If an offer sounds too good to be true, it is. Ask yourself, is the mortgage company continually advertising
because they do not get any referrals?
If so, why? If
that firm has such a great offer wouldn’t everyone be going
there without advertising?
If
the loan officer will not meet with you, become concerned.
Many predatory lenders purposely do not have their loan
officers meet with borrowers so that their loan officers do not
develop feelings for the borrowers situation.
It is harder to cheat someone in person.
When
you meet with the loan officer does the loan officer ask you
what your plans and goals are with your financing or does he
push you into a loan product?
Does the loan officer explain the loan process, costs,
etc., to you? Does
the loan officer explain potential pitfalls and other items you
may not want to hear? If the loan officer is truly trying to help you, they will be
explaining options, pros and cons of your situation and
financing options, and potential problems versus trying to
pressure you into a loan product.
Borrow
only the amount you need and can afford to repay.
You may be pressured to borrow more than you need. Before
deciding on a loan, be clear with yourself about how you will
use the money and how you plan to pay it back.
If you are already in debt and having problems
making your payments, you probably should not borrow more
money. Instead, try
to negotiate a payment plan with your current lenders.
Understand
how much the loan will cost.
Be sure to find out how much you will have to
pay in total when the final payment is made.
Beware of loans with a "balloon"
payment unless that is what you want.
If you have difficulty making the balloon payment when it is
due, you will have to refinance the loan to make the payment.
Do
not be pressured into signing for a loan you can't afford.
If you do get pressured into signing for a loan you
can't afford, act fast.
You have a legal right to cancel, or
"rescind," your loan, but you must generally
cancel the loan in writing within three business days of
signing the loan documents.
If
you find an honest loan officer working for an honest mortgage
company, you will get and honest loan and the best rate.
|