In the end, the decision on the program any homebuyer makes will be based upon the questions you ask, the questions your loan officer asks, your needs/money sense, the range of products you're presented to choose from and the ability of your loan officer to create a viable solution for you.
The wrong program can at worst cause you to lose your home to foreclosure, and at best will cost you 7% to 15% of the amount financed to get out of. Once you close, you risk wasting the initial cost of the closing, the interest over a industry required 12 month seasoning period, in addition to any pre-payment penalty associated with the loan. Yes, odds say, when you get bad advise on a program, you'll get stuck with a pre-payment penalty to. A very expensive decision indeed.
Shopping a mortgage rates and closing costs is no different than buying a car without ever seeing it. This is not a car you're buying and mortgage companies are not car dealers. Your new home is an investment and should be treated in every way as an investment. You want and need to maximize your return while at the same time, minimize your costs and exposure. However, quality counsel is not free and comes with a price.
To many professional "advise givers" have devalued the quality of counsel a homebuyer receives, inadvertently costing thousands their homes and even more home owners in the form of real dollars lost in their investment through poor program choices.
Home Buyers should ask themselves; "how much is that great counsel worth to me?" Is it worth an extra $300.00 in lender fees or 2% in origination fees to get the right loan program and protect my future home and credit?
Professional "advice givers" like to tell home buyers to shop rate and closing costs. As a professional mortgage lender, I know the right way to shop is by the quality of the consultation you receive from your loan representative, the product range they offer and knowledge they provide. This must be every homebuyers number one priority. Once a homebuyer understands what program best meets there needs, they can then negotiate rate with a loan representative they trust.
One need only look at todays record default rate in the mortgage industry to realize just how important good counsel, from experienced professionals, really is. Especially for first time homebuyers who need a credible expert to tell them "no, this is to much home for your income" or "this is not the right loan program for your money personality".
Home buyers certainly can't count on a professional "advice giver" to be by there side, and most Real Estate professional will "up-sale" these home buyers all day in order to increase their commissions, especially since many have no idea what the homebuyers financial means are.
The average homebuyer only has the Mortgage Professional to protect them from making poor financial choices.
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