Mistakes to Avoid When Selecting a Mortgage

The mortgage market is one of the most volatile markets in the world.
Thousands of lenders compete for your business, not because they want to
save you money, but because they want to maximize their own profit
margins. Here is a list of things you need to avoid when shopping in the
mortgage market.

1)Do not assume that quotes given on different days from different
lenders are comparable. The market for mortgages changes so quickly that
you need to compare different lenders on the same day in order to truly
evaluate them.

2)Do not select the loan provider offering the best terms over the
telephone or in the newspaper. Remember that you cannot hold a lender to a
given quote until you lock the rates with them. A lock is a lender"s
agreement that guarantees pricing.

3)Never accept that you have locked prices with a lender through the
words of a mortgage broker. Ask for a written confirmation of the rate lock.

4)Do not assume that verbal quotes are made in good faith. Many times a
lender wants to rope you in by promising the moon and stars. Once they
have you in their grasp, it"s harder for you to back out as many will
employ deceiving tactics to get you to sign. Always move slowly and get
everything in writing.

5)Do not be hasty. It will seem that so many lenders are trying to
ЁhelpЁ you and ЁsaveЁ you money. These are people who deal everyday in
mortgage loans and the tricks associated with them. You must remember that
business is business and they are trying to maximize the benefit for
their company and/or themselves, not you.

Move slowly. Get everything in writing. Get a rate lock, written.
Explore different lenders and DO NOT allow yourself to be rushed into a
non-thought judgment.