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Answers (4)
- SoCal_Engr
- Contributions:5653
The biggest red flag is when you find yourself asking "what?", "what's that?", "is that better for me?". In other words, as Rudi alluded to, if you haven't done enough homework to know the advantages and disadvantages of the different mortgage products, what your needs are and how these align to the mortgage products, and the basics about what you could qualify for.
Spend some time learning the basics, and then use the information; both to help you select a lender and also to get the best product/terms for your situation.
Spend some time learning the basics, and then use the information; both to help you select a lender and also to get the best product/terms for your situation.
- Ed Brophy, "Ed Brophy"
- Contributions:455
You have posed a question that's not easily answered, there are many things that can change a loan situation. For instance when shopping interest rates you need to be aware that rates change daily, sometimes several times a day. What I quote you today may not be available tomorrow or even later today.
I disagree with Tom I believe you should definitely obtain a good faith estimate from the lenders you speak with to give you an idea of the cost of refinancing. A lenders base origination fees processing, underwriting, etc should not change from day to day. A reputable mortgage professional will honor their good faith estimate for x number of days. For instance I honor my good faith for 14 days.
When shopping for a loan it's important to shop apples to apples, i.e. if you want a 30 year fixed rate loan make sure everyone you're speaking with quotes you a 30 year fixed. I've run across clients who are shopping for a 30 year fixed loan and are quoted rates from a 5/1 ARM.
The biggest red flag is your gut. If you gut tells you there's something not right about the person you're dealing with your gut is probably right.
I disagree with Tom I believe you should definitely obtain a good faith estimate from the lenders you speak with to give you an idea of the cost of refinancing. A lenders base origination fees processing, underwriting, etc should not change from day to day. A reputable mortgage professional will honor their good faith estimate for x number of days. For instance I honor my good faith for 14 days.
When shopping for a loan it's important to shop apples to apples, i.e. if you want a 30 year fixed rate loan make sure everyone you're speaking with quotes you a 30 year fixed. I've run across clients who are shopping for a 30 year fixed loan and are quoted rates from a 5/1 ARM.
The biggest red flag is your gut. If you gut tells you there's something not right about the person you're dealing with your gut is probably right.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
JN.
There are a lot of issues to be aware of that can harm you. The primary reason folks get taken advantage of is they didn't take the time to use the resources that are easily available on the internet by local, state and government agencies.
Asking this question on this or other websites is not a form of education, it's only conversation. Spend the same amount of time learning as to what you probably spend on other large purchases and you'll be fine. .... Happy funding, Rudi
There are a lot of issues to be aware of that can harm you. The primary reason folks get taken advantage of is they didn't take the time to use the resources that are easily available on the internet by local, state and government agencies.
Asking this question on this or other websites is not a form of education, it's only conversation. Spend the same amount of time learning as to what you probably spend on other large purchases and you'll be fine. .... Happy funding, Rudi
- Tom Matthews, "Tom Matthews in TN"
- Contributions:54
Good morning.
When shopping a lender, you don't really want a good faith estimate. It's just too hard to make those comparisons and there is an easier way. First tell the lenders your want 30 year fixed, conventional (for example). Then ask for a worksheet showing 1) interest rate, 2) monthly payment, 3) an itemization of all closing costs.
You also want to trust your loan officer. There are so many good loan officers that there is no need to deal with anyone that doesn't return calls, gives you a hard time or promises a lot and delivers nothing.
For you, the Red Flags are all about transparency and comfort. If your mortgage person explains the process and gives you the information that I itemized, you should be good.
When shopping a lender, you don't really want a good faith estimate. It's just too hard to make those comparisons and there is an easier way. First tell the lenders your want 30 year fixed, conventional (for example). Then ask for a worksheet showing 1) interest rate, 2) monthly payment, 3) an itemization of all closing costs.
You also want to trust your loan officer. There are so many good loan officers that there is no need to deal with anyone that doesn't return calls, gives you a hard time or promises a lot and delivers nothing.
For you, the Red Flags are all about transparency and comfort. If your mortgage person explains the process and gives you the information that I itemized, you should be good.
what should i look for in refinancing my place, what are the RED FLAGS?
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