My Three Rules for Obtaining a Mortgage Loan

Whether you are looking to purchase or refinance, you are a first-time homebuyer, a seasoned homebuyer or homeowner I have assembled my basic rules for obtaining a mortgage loan. These rules are based on my many years of experience and stories or circumstances conveyed to me by my clients. It is my belief that they will help you enjoy the many rewards of homeownership as opposed to failing the test of homeownership! They are as follows:

FIRST RULE: WHAT YOU DON'T KNOW CAN HURT YOU!!

SECOND RULE: WHEN IT'S YOUR FINANCIAL FUTURE, THERE IS NO SUCH THING AS A STUPID QUESTION!!

THIRD RULE: DO YOUR HOMEWORK!!

So....Ron, You have these three great rules! What are you really trying to say?

First Rule: If you do not have a clear cut understanding of the nature and terms of the mortgage loan that you are accepting then you can unknowingly set yourself for a potential "nightmare" at some future time. A couple of examples would be a prepayment penalty in the event of a future sale or refinance of your home or accepting some form of adjustable-rate mortgage (ARM) where the monthly payments will "skyrocket" within a few months or years.

Second Rule: Unless you are a very seasoned homebuyer (several purchases under your belt), you may not really know or understand all the "in's and out's" and "lingo" used by those of us in the industry. Unfortunately, there are those "professionals" that will not tell you any more than what you specifically inquire about and nor volunteer information or details that will be important to you.

Third Rule: Prepare for your purchase or refinance by reading and researching information on products and programs and various features/options available in the mortgage marketplace. Again, unfortunately there are those "so-called" professionals that will guarantee and promise you the world (tell you what you want to hear as opposed to...what you really need to know!) and of course there will always be some that practice "bait and switch".. In shopping for your mortgage, assemble a few key questions about getting or qualifying for a mortgage loan. Know the answers already! Like a prosecuting attorney, they ask questions that they already know the answer to....that's their way of tripping up a witness or defendent. This process will allow you to sort through the lenders or loan officers with greater ease and effectiveness.

Very importantly, there is a significant difference between being given partial truths verus whole truths!

Copyright 2006, Ron Withers, All Rights Reserved