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Find the Best Home Loand Mortgage Company
by Eric Newman
If you do not wish to commit to living in one place for at least a few years,
then owning a house is probably not for you, at least not yet. With the
transaction costs of buying and selling a home, you may end up losing money if
you sell any sooner. But if you think you are ready, you probably need to find a
mortgage loan. Finding a home loan mortgage companies or lenders can be an arduous task.
This is a serious decision and you should be ready to invest some time to
research mortgage loan options and understand the mortgage loan process. There
are many lenders and you should contact several potential lenders to search the
best mortgage companies and lenders.
The easiest way to contact several lenders or brokers is online. Let them
compete for your loan. Today, most mortgage companies and lenders provide simple
online forms or questionnaires. This way, lenders or mortgage companies can
directly contact you to promote or discuss your mortgage loan and determine how
they can best serve your needs. Once you have spoken with a loan officer then
you can usually move forward with an application process for credit. As you
receive offers from various lenders and brokers you need to compare apples to
apples to make sure the pricing is comparable.
Ask each potential lender for a "no/no" which means a "no points and no
origination fees" rate quote. Also ask for detailed closing costs and a total
cost to close. Closing costs should not vary too much because the costs
associated with closing have standard fees in many states and county taxes,
credit report fees and appraisal fees. Also keep in mind that closing costs on a
Good Faith Estimate (GFE) are only estimates and may change at closing. Some
lenders or brokers will even guarantee that their closing costs will not exceed
the total closing costs on the GFE. Once you have the no discount fee and no
origination point rate and closing costs you can better compare your mortgage
offers.
It is clearly a big mistake to just ask for a mortgage rate or to call about
a low rate you may have heard on TV or radio. Rates are determined by risk and
each mortgage loan will carry a different level of risk and thus a different
rate. Risk factors that determine rates can include the borrower's credit
history, the price of the home, loan to value (LTV) which is determined by the
down payment and many other factors. Eric Newman is an author for Teanobi.com. All articles may be
used and reprinted as long as they have an active link at the bottom pointing to
http://www.teanobi.com with the
anchored text: Teanobi - Green
Tea
Article source: http://www.mrdollar.com/. Used with author's
permission.
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