Prequalification/Preapproval - get it from a lender
- in writing! When you get a rate quote find out if there are points and if there is an 'origination fee' or 'commitment fee'.
Some lenders quote '0' points without telling the borrower that there is a 1% origination fee or 'commitment fee'.
Ask specifically if there is an origination, commitment or other fee and how much it is.
Allyson E Knable
Branch Manager-Cherry Hill, NJ
AURORA FINANCIAL GROUP
1814 Route 70 East Suite 331
Cherry Hill, NJ 08003
Request full credit
Tell her Paul Howard sent you.
Should you lock your
If you elect to "lock in" your mortgage
rate, the interest rate and total points will not change provided your
loan funds before the lock-in period expires. Some lenders will extend
the lock if
it expires - at their option. One local lender..and they are typical..
states: .."Under no circumstance will you be offered a rate lower than
your original lock-in terms upon expiration of the lock. Based on our
experience a 30 day lock-in for a purchase... provides adequate time to
close and fund within the lock period" My
advise is to be careful of a 30
day lock. In many cases it will be of no benefit to you and may cause
to end up with a higher than market rate. If you cannot close during
lock period then do not lock.