Finding The Right Mortgage
Can Be Challenging
 With the countries concern with the economic issues today, finding the right mortgage is in your best interest. Keep in mind - it may take some doing.
Just when you think you have found the lender that will provide you with the best terms for your mortgage - wham! All the terms have changed! When shopping for the mortgage you will want to consider some of the following: - Will you actually receive the terms you applied or bargained for?
- What will your interest rate be?
- Will the lender put the quote in writing?
- Is the rate locked in?
- Is there a fee to lock in your rate?
These are all major considerations when looking for the perfect mortgage for your needs. Consider a Lock-InOne way to help protect your sanity during this process is to consider a "lock-in", or a rate commitment from your lender. This is a promise from the lender to hold a certain rate and points for you with during a specified time period while your loan is being processed.This can come in useful, since it will take the lender several weeks to process your application. During this time you would become protected from any rate increase that may occur. Be aware, however, in doing this you would lose out on any rate decrease that may occur during this same period. Some lenders would lower the rate, but don't count on it. Make sure this is discussed before signing any lock-ins. Remember, the rate lock in is not the same as a loan commitment, which is the lender's promise to make you the actual loan with specific terms.  A good move before you sign a lock in rate agreement is to know what the "small print" says. If possible, obtain a copy of the agreement prior to signing and take your time reading it over. If you have any questions, make sure they are clarified prior to any signing.
Verbal lock in agreements can become very tricky if there is a dispute. It becomes a he said / she said type of issue. This re-enforces the need to be an informed investor. A knowledgeable real estate agent will be able to answer and assist you in determining if this is the correct move for you and your situation. Read my first time home buyers guide for additional things to consider. There are FHA Mortgage programs and FHA Mortgage rates available to first time home buyers and you'll want to know all the options available before making a decision. Contact me Mike Mizuno, to help you with finding the right mortgage and the right home for you and your family!
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