To keep yourself safe from misleading advertisements and dishonest lenders, ask these 5 questions before choosing a mortgage
- Is the advertised rate for an introductory period only? Be sure to read the fine print and ask the lender how long the promised rate applies.
- Are there hidden fees? Again, read the fine print carefully and ask about deposits or other hidden fees you may get hit with as soon as you decide to use this lender.
- What’s the APR? The Annual Percentage Rate (APR) of various loans is a quick way to compare various offers. Some advertisers will purposely bury the APR of their loan in the fine print at the bottom of their ad. Make
sure you know what the APR of your mortgage is before signing up for it.
- Does the monthly payment go toward the interest and the principal of the loan? Usually yes, with varying amounts going to interest/principal as the loan ages. Be sure to ask your loan officer or mortgage broker to go over this information with you before you decide which loan you want to make sure you understand exactly how it will be paid down.
- Do I qualify for this loan? Ridiculously low rates tend to have ridiculous qualifiers for borrowers.
When shopping for a mortgage, proceed with caution. Spend some time reviewing the details of all loan offers and be sure to compare several loans before making your decision.
If that decision leads you to Redwood Credit Union, you can count on an affordable solution and a partner who's nearby and ready to help. To learn more, visit our Home Loan Center or call 1 (800) 609-9009.