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The wrong mortgage can cost thousands of dollars in needless fees, interest and other costs

The wrong mortgage can cost thousands of dollars in needless fees, interest and other costs.

Many lenders have a handful of loan types that they use with almost all of their customers. You may qualify for special programs, but never hear of them. Many lenders use the loans that are most similar to what the Buyer is familiar with, but which provides the lender with the highest yield or fees (the loan that will put the most money in their pocket...)

Others will find out what your "hot-button" is: lowest interest rate, lowest fees, lowest payment (to name a few).

They will quote you the best deal based on your "hot-button" and make their money on another part of the loan.

A savvy homebuyer will look at the loan as a total package, considering the costs involved in each facet of the loan package.

If you so choose, we, as your Exclusive Buyers Agent, will help you review all your options before you make the final decision on which loan to use.

Homebuyer Representation, Inc. is a Real Estate Brokerage that services Salt Lake City, Utah and surrounding areas. Agents are Exclusive Buyer Agents (EBAs) and represent BUYERS ONLY. For Free Reports or a Free Consultation, contact Homebuyer Representation at (801) 969-8989 or click the highlighted links in this paragraph.

©2007 Homebuyer Representation, Inc.

Posted Tuesday May 08
( 05/08/07 05:34PM ) — Tampa Real Estate | Tampa Florida Homes Property for Sale MLS | Katrina Madewell

i agree... these negative amortization loans are for the birds and should be outlawed, too many good people are loosing their homes because a bad broker made a lot of money on these loans and never fully explained how they work!  Great post.

( 05/08/07 05:42PM ) — Benjamin Clark - Exclusive BUYER'S AGENT - Certified Negotiation Expert - SLC, UT

Negative-Am is all the rage amongst its promoters. They need to be as scrutinized (if not moreso) as the traditional loan products being offered. I didn't mention it in the blog post, but many clients also choose to have their accountant or estate planner review the loan options. I like to provide the evaluation and the "professionals" like it too because it makes it so clear which loans stand out as the better option.

Also, it is important that Buyers shop rates and fees on the same date at the same time. I have seen people commit to a lender a day after they had a quote from another lender, just to find out that the original lender's rate ALSO dropped overnight due to the same market condition.

I explain to my Buyers that these are things you have probably never heard before, but you have an awful lot of homeowners out there who didn't do their full due-diligence when shopping for their loan.

Yes, it requires more commitment on the part of the Buyer, but it will more than pay back for the time invested with money saved.

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