Working With a Mortgage Broker

As a homeowner you want the best mortgage for your family. This is true whether you are refinancing your current mortgage, taking out a second mortgage, or adding a home equity line of credit. Before you make a decision on any of these loans there are several questions you need answers to.

Mortgage brokers can use their expertise to quickly locate a variety of loans tailored for your individual situation. There are a number of things you need to know about these loans before you can compare and choose the best mortgage.

The interest rate you are offered for a given loan can change at any time. Most lenders give you a period of time where you are guaranteed this rate will not change. This is called the lock period, and as long as you close prior to the expiration of the lock you are guaranteed that interest rate. Youll want to make sure the lender does not tack a fee onto your loan for this guarantee. Make sure the points you prepay are also a part of this guarantee.

You will need to read the fine print and find out what fees and penalties the lender has included with your mortgage. Some lenders charge a penalty if you repay the loan ahead of schedule. If you need to move or refinance down the road this penalty could become a problem for you. When negotiating for the terms on your mortgage you could ask the lender to exclude these fees as a condition of your business. The mortgage industry is extremely competitive and you will find lenders very flexible in this manner.

Once you have selected the perfect mortgage for your home, you will want to close as soon as possible. If you have submitted all the required paperwork you should be able to close before the lock guaranteeing your loan expires. Make sure all of your documents for appraisals, surveys, insurance, and lender paperwork have been filled out correctly and submitted to your lender in a timely manner.

Louie Latour has twenty years of experience in the mortgage industry as a mortgage broker. He is the owner of Mortgages for Dummies, a mortgage resource site called Mortgage Refinance Advisor, devoted to saving homeowners money with a free guidebook Five Things You Need to Know Before Refinancing a Mortgage. http://www.refiadvisor.com

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