The Internet Mortgage
On line shopping saves you time and allows you to price compare in your convenience. Should your home mortgage be any different? Local buyers are finding the traditional safeguards are not applicable when shopping on-line. When shopping on line for your new home loan, research the following questions before making your decision.
Is there a pre-payment penalty? The state of Iowa allows a consumer to pre-pay principle or payoff a loan without charges or cash-out fees. What if your internet mortgage is originated outside of Iowa? Many homeowners have their down payment or equity lost by these “surprise” fees when selling down the road.
Does the good faith estimate include title insurance or the abstract extension fees? Iowa is the only state to have an abstract requiring an attorney’s opinion for clear title and title insurance. Make sure the closing cost fees quoted are all-inclusive for your area. Another traditionally undisclosed fee is the e-closing fee. Your internet mortgage lender will need a third party to receive and present all of your closing documents for you to sign.
Would this internet mortgage meet Fannie Mae guidelines or is it
Sub-prime lending? Sub-prime lending has created a new buzz
word in the real estate industry, the ultra stretched consumer. Stretching your
mortgage has become easier with forty year mortgages, adjustable rate mortgages
(aka ARM loan or teaser rate) and stretched debt to income ratios. Compare your
good faith estimate with a local lender that you can trust. Referrals by a
professional real estate agent or closing company are excellent sources for
lenders.
Reviewing all of your mortgage options is a good financial
decision. The internet mortgage can save you money. Before you send in an
application fee or sign a commitment, make sure to have everything you are
required to sign emailed to you in advance to read. Happy loan
hunting!
Heather Morris
Skogman Realty
Certified Residential
Specialist
