A good mortgage funding corporation is essential when you are buying a new home or refinancing your current estate. Knowing a few tips will help you make the right decision that will protect you from losing tons of money. There are some businesses that function as a mortgage funding corporation that will work deceitfully in order to make a few extra bucks. Some of the practices include charging too high of a fee, gaining additional fees for themselves for giving an undesirable rate and hiding some of the closing costs until you get to the closing table.
If anyone from a mortgage funding corporation discusses the perfect loan for you and your situation right off the bat, you should be a bit leery of using them. It takes more than a few minutes of discussing expectations, credit history and personal circumstances for a reputable mortgage funding corporation to make a rate recommendation. Also, some loan officers will ask to visit in your home in order to make a sale. This is not a usual procedure. If you suspect that your politeness is being taken advantage of, refrain from using that company to make the loan. Sometimes this tactic will be used in order to make a sale for their company.
Fees are another area to thoroughly discuss before you sign any papers with a mortgage funding corporation. Every charge that is listed should be discussed. You should absolutely never have to pay an upfront fee. If the company insists that they must charge a handing or processing fee beforehand, then just tell them no and find another company. A reputable mortgage funding corporation will not charge such a fee and the overall amount that you should pay should not go above 2% of the total loan amount.
When choosing a mortgage funding corporation for a purchase or refinance, you should also make sure that they have the proper state licensing and indemnity insurance. They must also provide you with a copy of the application that they have filed on your behalf. If they do not give you one without having to ask for it, then you should withdraw your application and find another company. You should also feel confident that your personal information will be kept safe and secure. Anytime that you suspect a fraud is being placed upon you, check them out with mortgage associations and other industry affiliations. You can check with your better business bureau or local chamber of commerce to see whether any other complaints have been filed against the specific company.