if you have a pre-approval letter, it is always a good idea to shop
around to compare mortgages. Rates
differ, points differ and closing costs differ.
ask for a "good faith estimate" when shopping for a loan.
there pre-payment penalties?
there a way to avoid paying PMI (Private Mortgage Insurance), for example,
using an 80-10-10 loan (80% loan, 10% 2nd trust, 10% down)?
- If the loan is an Adjustable Rate Mortgage, exactly when will the
rates change, based on what, and is there a cap of how high the loan
- What are the tax implications of this mortgage? Interest payments
can be tax deductible, for example, a $2500/month mortgage payment may
save you $700/month in taxes, leaving you with an overall monthly housing
payment of $1800. Ask your mortgage broker or tax advisor for more information.
- Be wary of internet mortgages. If it sounds too good to be true...it
probably is. Some internet deals may be fantastic, but if you're sitting
at the settlement table at 10am and the loan numbers don't add up, and
no one is answering the (800) number in CA, you may wish you chose a
local mortgage broker.