Do not fall for the scam of easy money. If the offer is too good to be true, it probably is. Ask for information in writing so that you can run it past your attorney.
Shop for a mortgage. Speak with several lenders before you select the loan that is right for you.
Learn and understand the loan terms. If your find a term that you do not understand, look it up. There are several places on the Internet that provide a glossary of every mortgage term invented, like www.bankrate.com and www.hud.gov.
Ask about a prepayment penalty. Prepayment penalties can cost you money if you refinance or if you sell. Some mortgages will have a prepayment penalty if you sell or refinance within the first twentyfour months.
At the closing, make sure all mortgage documents are correct and complete. Do not falsify any information on the mortgage documents. Do not let someone con you into falsifying any information on a mortgage document. Do not sign a mortgage document that contains either false information or blank fields. This includes wrong dates or the lender’s promise that the blank fields will be filled in later.
Your loan file must have a Good Faith Estimate Form, a Special Information booklet, a Truth in Lending Form, and a HUD-1 Settlement Statement. If your loan file does not have all of these, question the loan officer. If you still cannot get these documents, find another lender.
At the closing, question any additional fees that you were not told about up front. Question any discrepancy in amounts from what you were told about when you applied. It is not unusual for certain amounts to vary from the estimate to the final documents that you will be presented with at the closing. However, you should ask why there is a variance in the numbers and be satisfied with the answer before you sign the document. Do not be concerned that you are holding up the closing. This is your final chance to get everything right. This is a point where having an attorney can help.