Mortgage companies are all over the state and it can overwhelm you choosing which one to deal. You would not want to loss all the money that you’ve worked for, so be careful when looking for a mortgage company or agent. Here’s how:
- Never deal with out-of-state lenders. You might be given wrong estimates since mortgage fees vary from state to state. When you deal with a local mortgage company, you’re certain that the company has access to contacts within the locality, and titling companies all over the state. Correct estimate or value appraisal is certain to be correct according to area or state.
- Never let a real estate company recommend you to its lender. When a mortgage company pressures you to deal with their own realtors, it is because they have additional commission from that lender.Don’t accept estimate on closing costs without a maximum fee guarantee. A reputable and legitimate mortgage company issues a GFE or Good Faith Estimate included in the provisions under the Real Estate Settlement and Procedures Act (RESPA) stating that it is a must toprovide a GFE. However, because estimates are not actual computations, hidden fees may be added resulting to actual charges that’s either more or less. So make sure you are aware of all the necessary fees that must be paid when getting a mortgage.
- Never deal with mortgage company that discounts prepaids and title insurance charges. The state provide the prepaids (interest per diem and tax escrows) and title insurance fees to all mortgage companies. No discounts are allowed for title companies. A mortgage company must provide you with fees for a title premium that is according to the state law.
- Don’t accept a mortgage company that asks for application and appraisal fees. If a company asks for any kind of application fees, be wary. No reputable company would ask for fees. In fact, good mortgage companies uphold service over than profit.
Keep these things in mind, and always remember to be careful not to fall victim to scammers and dishonest mortgage companies.