Shopping for a Mortgage? Disclosure is key…

Most consumers shopping for a mortgage are trying to find the best rate possible. However, some lenders do not fully explain or disclose the rates and fees. Diamond Certified mortgage brokers are encouraging borrowers to protect themselves by asking lenders to guarantee all fees in writing, up-front.

Borrowers need to understand what they are given by the lender. They should ask if things “just don’t add up.”  Fees that are bracketed [like this], are often not included in the total shown on the Good Faith Estimate. Also, if you’re getting a 1st and a 2nd mortgage, ask for 2 separate estimates. Each loan usually has different rates and fees. Also ask if all third party fees (broker, lender, title, escrow, appraisal etc.) are disclosed. Rates are generally not guaranteed until they are “locked-in” and material changes in credit, income, and/or appraised values can also impact the rate and fees.