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Mistakes in Shopping for a Mortgage
Select the loan provider offering the best price over the telephone or in the newspaper.
Assume that rate quotes from loan providers are always given in good faith.
Assume that the rates quoted in the media are the rates at which you can borrow.
Solicit price information without giving the loan provider all the information about your loan that may affect the price. Lock the price of the mortgage without being sure that you have selected the right type of mortgage.
Accept lender referrals from other borrowers uncritically.
Assume that you can shop lender A today and lender B tomorrow.
Assume that the loan provider who offers the best deal on one type of loan will also have the best deal on another.
Assume that the loan provider offering the best deal at 0 points also offers the best deal at 3 points.
Assume that a payment made by the lender to the mortgage broker is not a cost to the borrower.
Assume that a "discount mortgage broker" will cost you less.
Select a lender without knowing any of the lender charges except points, then try to negotiate other charges afterwards.
Assume that the way to negotiate settlement costs is to make the lender justify each cost.
Assume that it never pays to shop for title insurance.
Assume that since finance charges are deducted from the amount financed, you won't have to pay them.
Allow yourself to be solicited for a reverse mortgage.
Neglect to ask what the margin is on your HELOC.
Assume that the Government requires lenders to disclose everything that is really important to borrowers.
Respond favorably to a solicitation without checking other options.
Confuse a no-cost mortgage with a no-cash mortgage.