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Choosing a Mortgage Provider list of Do’s and Don’ts
DO
DO
check
to make sure the company you are doing business with is licensed by the
Department of Financial Institutions. They can be reached at 602/255-4421 or
visit their website at www.azdfi.gov.
DO
obtain referrals by speaking
with Realtors,
friends, co-workers, neighbors and family.
Start with mortgage companies that
these people have had good experiences with.
DO
ask if the mortgage
company is
affiliated with industry associations.
Do their loan officers have experience
and education?
DO
obtain a second or third
opinion.
DO
ask questions if you don’t
understand
something.
DO
ask if there is a pre-payment
penalty.
DO
ask if escrows are included or
excluded in the
new mortgage payment.
DO
business with a loan
originator who
asks lots of questions BEFORE quoting an interest rate.
DO
be
prepared to answer
questions about
your employment, income, credit history and the property you wish to purchase or
refinance.
DO
consider how much you wish
to pay per month.
DO
understand that you may
qualify for loan
and payments that are more than you wish to spend.
DO be
skeptical of anyone who
tells you that
they can get you approved when no one else can.
DO
obtain a signed lock letter
when you decide
to lock an interest rate.
DON’T
DON’T
accept an interest rate
without
disclosure of the closing costs.
DON’T
pay money up front to a
loan originator
(except for credit report and appraisal).
DON’T
sign documents that offer
loan terms that
are not what you expected.
DON’T
assume that you can
change the terms
of a written agreement after you sign it—no matter what anyone tells you.
DON’T
overdo shopping for a
mortgage
provider. You’ll drive yourself crazy.
DON’T
be
pressured to sign a
contract for
obligation to pay a mortgage provider if the loan does not close.
IF IT SOUNDS
TOO GOOD TO BE TRUE, IT PROBABLY IS!
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