Every major sales transaction requires a consultation, Greater Home Loans believes, and a home purchase is no exception. Stay in control of your mortgage by asking your lender the following questions:
How long will this take?
It looks harsh at first glance, doesn’t it? But in reality it’s a question that will give you a reality check. Many borrowers are bombarded with ads from lenders who guarantee closing in a certain number of days, but each loan application is different and requires varying lengths of time to process. Ask your lender for an estimate of time before you find yourself growing antsy!
On top of empty promises, San Diego lenders go through ebb and flow in mortgage applications depending on rates. One week we are slow and the next we are over our heads. Brokers like Greater Home Loans that have access to multiple lenders can match your financing time frames with lenders who can handle the capacity.
Will I be penalized if I pay off my loan early?
For the most part, unless you are securing private money, the answer is NO. Prepay penalties have gone away with the latest round of mortgage laws that were passed after the mortgage collapse.
What are my closing costs?
Always ask us for a GFE or Good Faith Estimate. San Diego will begin using the new TILA/RESPA Integrated disclosure beginning August 1, 2015. I believe the term GFE will remain in use so don’t be afraid to ask for one. Nothing beats an offer in writing. There is no obligation and anyone who will not give you one does not deserve your business.
Are closing costs all the extra money I should worry about?
You will not only want to understand each cost for your own peace of mind, but also your wallet. Do not be one of those borrowers who think money for a down payment is enough to cover an entire home purchase – there are always extra costs and fees.
Ask your San Diego Consultant about PREPAIDS and the bottom line Cash-to-Close. Look through our website for video explanations on all aspects of mortgage lending.