This is part 1 of our 5 parts series on the five secrets nobody will ever tell you about mortgage loans. We constantly strive to educate our clientele and audience base in innovative and fun ways. Knowledge is power when making such a massive life decision.
As mentioned previously, over 90% of borrowers report to have experienced surprises at closing. These surprises are almost NEVER in the favor of the borrower. Some times these are relatively insignificant and can be kept or modified without material impact to the terms of your financing. However, many times the change in terms can result in extra costs to the tune of thousands of dollars.
Here are some situations that you should look out for at the closing:
• The lender has changed
• The terms of the loan have changed (such as years, adjustment periods, pre-payment penalties)
• The interest rate or fees are not what you expected
• Not all the necessary documents are fully completed
• You are asked to sign incomplete documents
• You are asked to “take their word for it”
If any of these situations exist, you should be willing to walk away from the closing table until they are resolved. Contrary to the emotions you likely are feeling at being able to see the finish line, it is far better to resolve any issues BEFORE you sign rather than dealing with the long-term consequences afterwards. In most cases, you’ll be able to resolve these issues the same day. Everyone is motivated to close. After all, no one gets paid until you close. In the rare case in which an agreement cannot be reached, you are NOT required to sign. Ultimately, that decision ALWAYS up to you. In a worst case scenario, it is very likely that there is someone else out there that is willing to earn your business by putting a rush on it.
Bottom line is that you should NOT be intimidated to withhold your signature and find another solution. Call us anytime you are in this situation for a free emergency consultation. Even if you did not choose us originally we are here and happy to service our audience to offer free advice and help resolve the situation. E-mail us at skaplan@accessnational.com and we will be happy to send you our contact card or digital business card for your records.
About the Author
Shawn Kaplan is an active, 50 state Licensed loan officer with Access National Mortgage. Email Shawn at skaplan@accessnational.com or call 615-426-3182.
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