3 SIGNS YOU’RE ABOUT TO USE THE WRONG
MORTGAGE LENDER
by Third Party | Dec 23, 2022 | Mortgage Information.
SOURCE: THE ASCENT —
These days, signing a mortgage means taking on a really big financial commitment. Home values are still elevated on a national level, and mortgage rates are the highest they’ve been in decades. And so chances are, if you’re taking out a mortgage, you’re committing yourself to a fairly large series of monthly payments.
That’s why it’s so important to choose the right mortgage lender. But if these three signs apply to you, perhaps you’re about to make a giant mistake.
1. YOU’RE LOOKING AT REALLY HIGH CLOSING COSTS
It’s common practice for mortgage lenders to impose closing costs in the course of finalizing a home loan. Those fees run the gamut from application fees to title insurance fees to recording fees.
Generally speaking, you should expect the closing costs on your mortgage to equal 2% to 5% of the amount you’re borrowing. So if you’re taking out a $300,000 mortgage, you may be looking at anywhere from $6,000 to $15,000 to finalize your loan.
It’s a trap you don’t want to fall into.
Key points
- Choosing the right mortgage lender could make your borrowing costs cheaper.
- It could also spare you a world of aggravation during the closing process.
- If you didn’t shop around, the communication from the lender has been uneven, and you’re looking at very high closing costs, you might’ve chosen the wrong lender.
Check out our picks for the best mortgage lenders
These days, signing a mortgage means taking on a really big financial commitment. Home values are still elevated on a national level, and mortgage rates are the highest they’ve been in decades. And so chances are, if you’re taking out a mortgage, you’re committing yourself to a fairly large series of monthly payments.
That’s why it’s so important to choose the right mortgage lender. But if these three signs apply to you, perhaps you’re about to make a giant mistake.
1. You’re looking at really high closing costs
It’s common practice for mortgage lenders to impose closing costs in the course of finalizing a home loan. Those fees run the gamut from application fees to title insurance fees to recording fees.