Good Mortgage Tips

From the Superpages.com

Most people shop for a loan with the goal of getting the lowest interest rate. That alone may be enough for short-term loans or small loan amounts, but getting a good mortgage requires you to look at a variety of factors. Getting a low interest rate is still important to the mortgage search, but ignoring other factors can cause problems for you down the road.

Good Mortgage Tip 1 – Escrow Accounts

When so many mortgage lenders offer an escrow option for your taxes and insurance, it’s easy to take this good mortgage feature for granted. While it may be standard for most mortgage companies, escrow accounts are not a feature for all companies. If your lender does not offer you this option, you must save for your homeowner’s insurance and property taxes on your own each month. Even when you believe you can handle setting aside the money, make sure your lender has this option in case you change your mind.

Good Mortgage Tip 2 – Customer Service

Although it’s common to choose a mortgage company based on your rapport with the lending representative, the time you spend working with him is only a small piece of the puzzle. Research the company and talk to others who have their mortgage with it. You may not run into any issues over the life of your loan, but if you do, a good mortgage company should provide excellent customer service, even if it’s over the phone instead of with your original representative. If you hear bad things about the customer service, consider other lenders.

Good Mortgage Tip 3 – Mortgage Fees

Before you move forward with any lender, compare the Good Faith Estimate of Settlement Charges form (HUD 1-A) for each lender you shop. This document gives you information about the range of fees the lender can charge for each item, such as appraisal and title search. Ask questions about what may cause you to receive fees at the higher end of the range instead of the lower end of the range. A good mortgage representative can explain this to you in detail and provide specific guidance on the matter.

Always remember to read the fine print in your contract. A good mortgage shouldn’t contain a prepayment penalty if you move or refinance the loan. Even if you do not believe this will happen, much can change in 30 years.