Shopping for a mortgage when buying your home or refinancing is not as easy as some of you think. First off, you should get yourself pre-qualfied at least 3 to 6 months before you actually go out and look for a home. Especially if your credit is less than perfect.

Secondly, you need to make sure that you are dealing with a mortgage professional. Yes, it's good to be referred to someone. But just a fyi, that doesn't mean that they might be the best for you. I could give you stories. If you don't feel comfortable, it doesn't hurt to talk to at least 2 more individuals.

With 16 years in the mortgage industry, I have heard many stories of bad experiences from borrowers, realtors, and title clerks. And in my professional opinion and experience, there are 3 major things that aggravate me, that are pet peeves of mine, that you should be aware of.

1. Good Faith Estimates - When ever you speak to a loan officer and they actually pre-qualify you or if refinancing, that they give you a rate, your payment, and costs.... that they should be able to present you with a Good Faith Estimate (did you get one) usually in the next 15 to 30 minutes. Unless they tell you that they will get it to you that evening or by the next morning, anything longer than this is a major red flag.  In many cases, they are usually hiding what they don't want you to see. And just because they put it on paper, doesn't mean that it will always happen.
2. Quoting Rates - No matter if you ask for a rate quote or if the loan officer gives you a Good Faith Estimate (GFE), they need to explain how long that interest rate is good for. They also need to go over the lock-in procedures for locking in such quoted rates. Many fail to do this and the average borrower doesn't know to ask. So if I give you a rate and don't tell you how long that rate is good or how to lock into that rate, then that rate doesn't mean squat. Make sense?
3. The interview process - There is more to it than just asking your name and how much you want to purchase and refinance. Especially more than ever in today's market. It's truly hard to put a time limit on how long someone should spend with you, if it's on the phone or in person. But I can't see how I could do it under 20 minutes, when I need to ask the right questions when qualifying you for a mortgage. I like to get an idea of your goals and a few other things. If the loan officer doesn't ask you about your goals and some other financial questions, I would have second thoughts. And to find a loan officer that truly knows the differences between FHA loans and conventional loans.
   

Understanding the mortgage process actually is not that hard, as long as your loan officer takes the time to explain things to you and to educate you. If you are first time homebuyer, I would suggest reading up on some information prior to speaking to a loan officer. This way you have a good idea what they are talking about. Please read this : First Time Homebuyer Tips Series - 5 Parts

First Time Homebuyer Tips Series :

• First Time Homebuyer Tips : FHA - Conventional - VA - Subprime -- Part 1 of 5
  

• First Time Homebuyer Tips : Getting Qualified & Knowing your Credit -- Part 2 of 5

• First Time Homebuyer Tips : Understanding the total mortgage process -- Part 3 of 5
  

• First Time Homebuyer Tips : FHA, a better mortgage program? -- Best Programs & Why -- Part 4 of 5
  

• First Time Homebuyer Tips : Summary - Red Flags to be aware of -- Part 5 of 5

Here are some posts that I wrote hoping to educate you on the specifics of mortgages and the mortgage fundamentals. Think of it as a mini crash course.

Good Faith Estimates - Knowing the basics

APR vs mortgage interest rate - knowing the difference

Myths behind zero point interest rates

Round 2 - Seller-Financed Downpayment Assistance Programs - Nehemiah & AmeriDream alive?

For more FHA loans vs conventional loans comparisons :

• FHA loans vs Conventional loans - A true numbers comparision with 5% down - Using a 710 credit score
  

• FHA loans vs Conventional loans - A real comparision with 5% down - Using a 659 credit score

• FHA cash-out loans vs conventional cash-out loans - A real comparison

First Time Homebuyers Tax Credit info :

• Use a 6 month gift from a relative to buy a home, thanks to the Tax Credit

• First time homebuyers Tax Credit - How to use it before you actually buy your home....

Rural Housing Loans - No money down - USDA loan

Credit Scores CHANGING now on FHA loans?......... Opinion OR Fact???

Mortgage Market Reports - Interest Rates climb higher !!!!! - January 21, 2009

I have just been called a used car salesman ...... and I am confused to as why.

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For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2008-2009 Tax Credit for First Time Homebuyers : 2008 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!

Copyright © 2009 by Jeff Belonger