If you are in the market for a new mortgage loan, there are a number of common mortgage mistakes that you need to be aware of. Many homeowners feel pressured to complete applying for a mortgage and rush through the process making a number of mistakes that cost them thousands of dollars. Here are several tips to help you avoid making costly mistakes when refinancing your mortgage loan.
Comparison Shop Using the Good Faith estimate
When you compare loan offers when shopping for a new mortgage it is important to request a Good Faith Estimate from each lender you are considering. The Good Faith estimate is a standardized form lenders are required to provide outlining all fees for the loan. Most lenders will provide this document if you ask for it. Make sure you pay close attention to the lender fees and the interest rates listed on the Good Faith Estimate.
Compare All Aspects of the Loans
Many homeowners get hung up on interest rates and neglect comparing closing costs and lender fees. These homeowners often overpay thousands of dollars for their mortgage loans. The Annual Percentage Rate is a good starting point for comparing loan offers; however, always use the Good Faith Estimate for comparing a breakdown of all lender fees and closing costs.
Provide Documentation Quickly
Many homeowners run into problems by not providing information and documentation promptly. This lack of communication can delay your mortgage and cost you the interest rate guaranteed by your lender. The rate guarantee you receive is only good for a period time; if you are unable to close on the new mortgage before the guarantee expires, the lender may raise your interest rate. To learn more about your mortgage options register for our free mortgage guidebook.