with a good mortgage loan. But how do you know the good lenders from the not-so-good ones?  First, be sure to talk to several lenders so that you can compare their rates, fees, etc. Keep the following questionable practices in mind, which could signal that you may want to look for another lender.  

 

      –   Extra high interest rates

      –    High origination costs such as points or fees

      –    High or excessive closing costs

      –    High broker fees

      –    Pre-paid credit life insurance

      –   If they call you first or use high pressure tactics

      –   Costly pre-payment penalties which penalize you for

          paying off the loan faster than originally planned

      –     They fill information on the application that you know

          to be incorrect

      –    They suggest you borrow more than you need or more

          than the value of your home

      -  They recommend a loan based on equity in the home,

          not your ability to repay the loan

      –     Loan rates and terms that change at the last minute

          (bait and switch)

Figuring out whether interest rates, origination costs, closing costs and broker fees are excessively high will depend on you doing your research. It is recommended that you speak to at least 2-3 loan officers or mortgage brokers from different institutions to get a rate quote and good faith estimate from each of them so that you can make sure you are getting a good price.