When shopping for a mortgage, it is always a smart idea to make sure that you ask for the estimates in writing. All you must do is ask your loan officer for an estimate, in writing, of all the costs that he or she is quoting you. Typically, you can avoid paying lender fees, such as underwriting, processing, or loan originator fees, or points by negotiating with your loan officer. Ask the loan officer what he or she is estimating for your annual taxes and annual insurance rates. It is Important to be aware of all this information so that you can keep track of everything. After asking your loan officer what their estimates of taxes or insurance are you should check with your real estate agent or a professional in the area to see whether that is consistent with what you should expect. If the taxes or insurance are significantly different, then that will drastically affect what you pay each month as well as how much you are qualified for. That is why you need to get everything regarding this process in writing, so that it can be evaluated, and everything runs smoothly. If you are working with a loan officer that is not local, he or she may make mistakes that could lead you to not qualifying for the loan later.
After settling this, you should then find out about other fees that the loan officer may not disclose to you. Loan officers are not required to disclose all costs, like inspections which may not be mandatory. You most likely will want to get a home inspection on your new prospective home. Also, in many states, the insurance companies require additional inspections to make sure that the house is up to par. Make sure you ask your loan officer if he or she has included an estimate of those costs. Often loan officers don’t include those costs. Speak with a local insurance agent in your area or a local real estate agent and find out what those costs average. The las thing you need is to come up with more money unexpectedly.