Before Getting That Loan

Sunday, April 22, 2007

When evaluating a builder's lender:

· Know what kind of loan you can get from at least one outside lender before you talk to the builder's preferred lenders, including specifics on interest rates, points and fees.

· Before you pay a loan application fee, read the Good Faith Estimate of loan costs.

· If a loan officer says anything to the effect of "don't worry, you can always refinance," walk away from the deal. It's hardly a ringing endorsement of the loan. And if the recent wave of foreclosure troubles has taught anything, it's that you can't always refinance.

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