Consumer Mortgage Online Lender - Find the Best
Before we discuss tips for finding the right consumer mortgage online lender, it would be appropriate to cite significant factors that may influence your decision to either purchase a home at this time or wait until the mortgage crisis is over.
As you undoubtedly know, the sub-prime mortgage crisis has had a global effect on the economy.† Just as the Federal Reserve had to bail out a well known lender in the US, the Bank of England was forced to bail out one of their lenders as well.†
The problem stemmed from unscrupulous mortgage brokers who offered low-interest mortgages to first-time home owners and then sold the mortgages to lenders.† While individuals thought they were paying low interest rates, and/or required no down payment, within months their mortgage rates had drastically risen and they could not afford the payments.† Thus, one by one, the banks foreclosed on their homes and the mortgage brokers make a great deal of money off the backs of these unsuspecting individuals.† In fact, some new homeowners walked away in ruin.† Unfortunately, most of these people didnít read the fine print before they signed the contracts.
As more and more foreclosures resulted, the property value of the homes decreased, the stock market went into decline, and the economy was forever changed (some experts now say we are in a recession).† Now it is even more difficult to obtain a loan or credit, since the foreclosures continue.† Here are some important considerations when applying for a loan:
* Locating consumer mortgage online lenders†will require a great deal of research so that you can compare and contrast.
* Avoid mortgage brokers at all costs.†
* Make a list of the consumer mortgage online lenders and call to make an appointment.
* Check to determine if they are legitimate and reputable.
* Check on your credit report and determine your FICO score.
* Ensure that you have a minimum of outstanding credit card debt.
* Can you afford to make a down payment of 10%?
* What type of mortgage are you looking for?† Fixed rate or adjustable rate?
* Are you looking for a 15 year or 30 year loan?
* What are the additional fees incurred for applying for a loan?
* Determine the closing costs.
* Ensure one of the practices of the consumer online mortgage lender is to remain in constant contact as well as answer any questions you may have along the way.
* Read every piece of paper put in front of you before you sign anything.
Although there may be some savings in choosing homes that are in foreclosure, it may also be prudent to wait until the end of the year to purchase a home so that you have time to research consumer online mortgage lenders, put all your financial affairs in order, and talk to as many mortgage lenders as possible before you sign on the dotted line.