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The Wrong Mortgage Can Cost You Thousands of Dollars

By Benjamin Clark

Real Estate Agent with Homebuyer Representation, Inc. DRE# 5467433

August 07, 2019 07:24 AM

The wrong mortgage could end up costing you thousands of dollars in needless fees, interest and other costs.

Many lenders have a collection of go-to loan types that they use most often. However, your circumstances may require a special product that only certain lenders can offer. Many loan originators prefer to offer loans that give them the highest yield or profit (the loan that will put the most money in their pocket...).

Some lenders will find out what your hot-button is. Is it wanting the lowest interest rate? The lowest fees? The lowest monthly payment? Loans can be configured in many ways. Modifying one aspect of a loan affects the other terms. If a lender knows that you are focused solely on the fees, they can quote you a loan with low fees, but it will likely have higher closing costs and/or a higher payment. (It may even have pre-payment penalties or an adjustable interest rate.) If they know you are focused solely on the lowest interest rate, they can raise fees, the loan amount, or other factors to show you a loan with an artificially low interest rate, but which ultimately costs you more than you would likely save with a loan with a slightly higher interest rate.

A savvy borrower will look at the loan as a total package and will consider all the costs involved in each facet of the loan. At Homebuyer Reprsentation, we help you look at the total loan package and analyze the costs and other terms related to the loan offering. We have helped hundreds of buyers and work with many lenders so we may be able to suggest other programs that might be a better fit for your situation. We recommend that clients properly "shop" and compare loan products with two or three lenders at a minimum and we can help you understand their proposals. Our analysis takes it one step further and helps you make an educated decision about which lender and loan to choose based on how long you are likely to have the loan. (Either because you will relocate, or perhaps because you might be able to refinance the loan before the 15 or 30 year term is up.)

Exclusive Buyers Agents do not list homes and will not ask you to limit your level of representation. They will be 100% on your side during the transaction, representing YOU, negotiating on YOUR behalf and protecting YOUR interests.

Smart Home Buyers