High Hopes for a Fair Mortgage Loan and Great Home-Buying Experience
The Andrews were excited about buying a new home. After getting pre-approved for a mortgage loan, they found their dream home and made an offer that got accepted. The Andrews had a home inspection to make sure everything was in ship shape. “I’m sure glad we are not buying a lemon of a house,” Mrs. Andrews said to her husband.
Their loan officer gave the Andrews a Loan Estimate and explained to the them the cost of the loan and how the numbers on the estimate would be on their closing documents. Over the next 30 days the Andrews became overwhelmed with paperwork, their jobs and children and packing for the move. They wanted what began as a fun experience to be over with. Eventually they received a bottle of wine as a house warming gift and the keys from their Realtor.
Sobering Reality: Mortgage Loan Over-Payment
Did the Andrews make any mistakes? They followed the popular home buying process from getting pre-approved to having their home inspected to providing the necessary paperwork. Little did the Andrews know they overpaid by tens of thousands of dollars for their mortgage and would be struggling with high monthly payments for the next 30 years. Today they are stressed and feel they’ve been cheated.
How to Get a Fair Mortgage Loan and Avoid Over-Payment
What could the Andrews of done differently to avoid the pitfall of mortgage regret?
First Option: Negotiate Mortgage Loan Interest Rate and Fees
One way would have been to ask their lender for a lower interest rate or fees. Mr. Andrews did not realize he could have utilized his negotiating skills just as he had done before with the purchase of his minivan. He would of had to be careful, watching to ensure that when the interest rate was lowered there was not an increase in fees.
Second Option: Shop Around for a Better Mortgage Loan
A second way would have been to shop around. “We didn’t know this, we just figured all mortgages were the same,” Mrs. Andrews stated. Here again, the Andrews had to learn how to carefully compare multiple Loan Estimates. It would have been time consuming. In the end they may have saved money, but their mortgage may have been just less of a bad deal. “Is there a way to know for sure your mortgage is fair?” the Andrews cried out. Yes, it was the third available option.
Third, Better Option: Get a Mortgage Loan Review by a Professional Third Party Expert
The Andrews could have had a review of their Mortgage Loan Estimate. With an independent third party review they could have known for sure if their lender was treating them fairly. If something needed to be negotiated the Andrews would know exactly what it was and by how much it should be lowered. If need be, they could have found another lender that would match what they knew to be fair.
Conclusion: How to Help Ensure You Receive a Fair Mortgage Loan
The Andrews had a home inspection, but failed to get a ‘loan inspection,’ which would have prevented a lemon of a mortgage. “We wish we would have gotten our Loan Estimate reviewed,” the Andrews sadly admitted. Make use of the above three methods to avoid having mortgage regret like the Andrews. Additional information on Loan Estimate reviews can be found at MortgageLoanReviewUSA.com Ensure that your home loan is a fair home loan.