Before contacting your lender, you should do some homework in order to understand different aspects of home loans and to know about your lender. It is very well understood that the information provided by the lenders about the home loans available is rarely accurate and there are obvious reasons for it. This article is aimed to provide some useful information to the people looking for home loans.
Once you decide the home to be bought, the next step is to find a loan from Lendumo. With the rising interest rates, lenders’ businesses face a nosedive and this is the reason they feel a kind of desperation. In their enthusiasm to sell a loan product, they stress upon a loan, which rarely fits your bill. Because, similar to the furniture items, the home loan is also a product and different home loans lead to different levels of profits to the seller. A sales pitch, therefore is rarely backed up by the actual facts. So, a million-dollar question is should we trust a sales pitch by a loan officer? Expert opinions are against such blind trust.
Things you should know about your lender:
- Arrange contact information, affiliation, memberships and associations
- Always try to find the ways to avoid foreclosure; check out your lender’s various repayment plans, loan modification plans, and postponed payments.
- Check out online complaints against your lender
- Get a comprehensive list of interest charges and various plans
- Verify the reputation of your lender
10 basic questions to ask your lender:
Here is a list of 10 basic questions you should ask your home loan provider:
- Tell me is effective the interest rate on this homeloan?
- Tell me the number of discount and origination points to be paid?
- Tell me the closing costs?
- Tell me the time I lock the interest rate and how much will it cost?
- Tell me the prepayment penalty?
- Tell me the minimum down payment needed?
- Tell me the details to qualify for this homeloan?
- Tell me the documents I need to provide?
- Tell me the loan application processing time?
- Tell me what factors can lead to a delay in approval of this mortgage?
- Tell me the latest interest rates being charged (you can also refer to your lender’s website for it) because interest rates and home loan plans keep on changing and there might have been a decrease in interest rate during the time you applied for the loan and it got approved.
Warning signs of a scam or overcharging
- If your lender asks you to pay any advance fee prior to modification, refinance or reinstatement of your mortgage.
- If your lender offers a guarantee that they can prevent a foreclosure or modification.
- If your lender ask to stop paying the home loan company and ask you to make payments to them directly.
- If your lender asks you to sign a deed without reading or understanding it
- If your lender poses as a government representative and offers a loan modification on behalf of the government.
- If your lender asks you to divulge any of your financial information over the phone or online
With an immediate moneylender, an individual would discover a vehicle that they needed to buy and afterward go visit their bank, credit association or neighborhood account organization. They would then work with the moneylender to make sure about a credit in the sum they required.