Summing It All Up

1. Secure your mortgage through a mortgage broker that has been in business for a few years.

2. Focus your efforts on finding a broker willing to deliver a par rate for the mortgage product you are interested in.

3. Don’t be afraid to negotiate the broker’s origination fee.

4. Avoid being talked into paying discount points to secure a lower rate.

5. Never accept an interest rate higher than par unless the rebate the higher rate generates is going to be used to cover your closing costs. If the rebate exceeds the amount needed, make sure the excess is distributed to you at closing.

6. Verify that the broker is delivering your mortgage on the terms you have agreed upon by closely examining the Good Faith provided at application.

7. Lastly and most importantly, re-verify the terms of your mortgage examining both the Final Good Faith and HUD-1 Final Settlement Statement at closing.

A Final Note:

I've prepared three Good Faith Estimates to illustrate mortgage lender pricing abuse. I've posted them to the Files folder in a Yahoo Group I created for consumers to share their experiences. If you would like to comment privately, you can do that by sending an email through the group moderator or by dropping me an email at rharrisonscott@gmail.com.