Simple Advice from a NJ Mortgage Consultant to Help Protect You

Shopping for a mortgage is complex endeavor – the loan options available can be mind boggling. But probably even more concerning is the stress of finding a lender who is credible and forthcoming. Therefore, seeking a quality NJ mortgage consultant is imperative to minimizing the loan process so you can concentrate on finding your home. This article will pose a few potential questions to help you along.

What Happens if I Select the Loan Provider Offering the Best Price Over the Telephone or the Internet?

This is obviously the objective, but you have to be careful because if you look hard enough or even just a little you’re bound to find a random ‘fly-by-the-nighter’ who will beat all other mortgage quotes. In the end, however, they have neither the intention nor the capability to deliver on such prices. But once they have you’re attention, committed you to the confusing process, it’s often too late to back out.

As a result, a reputable NJ mortgage consultant would never perform this kind of trickery. And you’ll know this because now you know that the market is always changing and therefore you can’t hold a lender to a quote until its locked. A lock is the lender’s agreement certifying the price.

What if the Lender Wants to Allow the Price to Float, Without an Agreement, Wanting to Set the Price at Closing?

If you agree to let the price ‘float’ which means ‘to change with the market,’ until shortly before closing, you will generally be counseled that that you will then receive the ‘market price’ at the time of the lock. However, a quality NJ mortgage consultant will be forthcoming about how the market price is determined.

The market price at closing time should be the value of the loan if the loan were delivered immediately. In essence, the lock price is usually always higher than the float prices, unless the interest rates don’t increase. The reality is that in the absence of contractual agreement, the market price at closing is simply what he provider says it is; and usually it is the 30-45 day lock price, rather than the float price.

What Happens if I Change My Mind About the Type of Loan After Selecting a Loan Provider?

This is a common happenstance. You think you want one type of loan and then through learning the mortgage process you change your mind. For example you thought you wanted a fixed-rate loan, but now want an adjustable. Or you thought you wanted a 30-year tem but then think that a 15-year term makes more sense. This could be problematic if the switch is not what your selected lender is expert in or is able to provide you the best price in.

To avoid this problem, researching and asking the right questions to a reputable NJ mortgage consultant in the beginning of the process will help to avoid this type of problem.