MORTGAGE ISSUE exclusively for customers and clients of Home_base_ Real Estate What you don't know CAN cost you.                         - Bob Glovsky & Rick Schaeffer                            WHDH's The Money Experts How to Compare Lenders You cannot judge a loan by interest rate alone. Compare the quoted interest rat * Availability of a product you need:  Does the lender have the type of loan program that suits you (this is particularly important for people needing FHA, MHFA, MCC, VA or MCAD loans). Ask about other programs, such as first-time homebuyers programs, and fast-approval programs. For how long?  How well are your options explained to you? * Total fees, costs and lender charges:  To measure the cost of a mortgage, you must consider fees and charges. A loan with a low interest rate may have its savings eaten up by charges. These vary greatly from lender to lender. Some lenders will absorb the cost of services as part of the basic loan fees. Other lenders will charge for each fee (credit reports, inspection, appraisal, etc.) in addition to their standard charge. Is there a lower legal fee for first-time homebuyers? Can the bank's lawyer represent you, too? * Actual Cost: The loan with the lowest rate is not always the best loan. If you do find a very low rate ask the lender to guarantee that rate _ in writing _ and be able to fund the rate. A good lender should be able to commit to this rate for at least 60 days. * Service: is the lender willing to give a regular progress report to you or your broker?  Who will be available if any questions arise during the processing period?  Is this person generally available?  Does he/she return phone calls promptly? * Time to loan approval:  How long will it take to get a definite mortgage commitment?  How long will the lender lock-in a current interest rate. * Lender's track record: Ask to speak to former homebuyers. How do previous customers rate the lender. How smoothly do most approvals go?  What you save in interest rate, you may pay back in aggravation. Rely on your real estate broker or agent to refer you to a lender with whom they have a good relationship. If in doubt, call the Attorney General's Consumer Protection Hotline (617) 727-8400 to see if any complaints have been lodged against the lender. MORTGAGE PRE-APPROVAL by Ron Rothenberg Before you buy a home, you should consider contacting banks and mortgage compan Pre-approval can be a very powerful negotiating tool. Let's say you are selling Often a seller is in a hurry to sell a home. The pre-approved financing makes y The cost for pre-approval is usually the same as the cost of an application. Yo If you do not wish to go through the entire approval process now, you may consi The mortgage business is very competitive, and there are many special offers fo Ten Rules for Safe Loan Shopping (from your Attorney General's Office) Although getting a mortgage is never an entirely smooth experience, here are so * Deal only with regulated companies. While all banks and   mortgage subsidiaries are government supervised, some mortgage   companies and brokers may not be licensed. If in doubt, ask for   their state license or registration number * Never sign blank forms. Never sign a piece of paper that isn't completely filled in. And before you do sign a completed contract, be sure to read and understand it. Get copies of everything Comparison shop before applying for a loan. * Check the company's reputation. Ask for references and check their reputation with borrowers, brokers and state agencies. * Don't borrow more than you can afford. * Don't sign _base_d on future rates. Promises of future low rates cannot be counted on unless they're in writing. * The loan you sign is the loan you own. * Beware of Easy Credit.  Say no to any deal where you are told your credit history or income does not matter. * Seek legal advice. Loan transactions are very complex and can be confusing. Protect yourself by hiring your own lawyer. * Read all disclosures. When you apply for a loan, you will be given a number of disclosure statements about your loan. Read them carefully. If you don't understand something, as your broker or lender to explain. If  it's a second mortgage, read the Attorney General's new disclosure form. * Check your cancellation rights. If you sign a contract in your home for anything other than emergency repairs or a first mortgage, you may be en_title_d to cancel within three business days of signing. Some Mortgage Officers that have pleased our customers in the past (please let us know of your experiences) * The Boston Five Mortgage Corp. Connie O'Loughlin (617) 641-4800 Wide variety of mortgage products, including FHA, MHFA, VA, MCC and MCAD. * The Mortgage Corner Joe Cooper (617) 843-9797 * Cambridge Savings Bank Ian Rusk Great for 5% down loans and first-time homebuyers. Quotes of the Moment Someone with a new idea is a crank until the idea works.    Mark Twain The palest ink is better than the most retentive memory.    Chinese Proverb If all economists were laid out head-to-toe, they would not reach a conclusion.     George Bernard Shaw A ship in a harbor is safe, but that's not why ships are built.      Anonymous It wasn't until quite late in  life that I discovered how easy it is to say, I don't know.    W. Somerset Maugham A conference is just an admission that you want somebody to join you in your troubles.    Will Rogers In the long run the pessimist may be proved right, but the optimist has a better time on the trip.  * SLMR 2.1a * This tagline is listed for no good reason!!