Sunday, January 28, 2007

How To Get The Best Mortgage Loan

the best mortgage loans are in "auctions" - check out

Price quotes differ from one lender to another. Thus in order to get the best price you should negotiate with different lenders.
A mortgage broker can also arrange for a home loan. They don't lend money directly; rather they search for a lender who can offer you the home loan. A broker gives the opportunity to select various loan products and repayment schemes. He contacts several lenders thus providing you with a range of terms and conditions from which you can choose the best option. A broker may contact several lenders for your loan application, but he may not find the best deal unless he has a contract with you to act as your agent. Therefore, you should contact more than a single broker, just as you may approach a few banks and thrift institutions.
There are financial firms that operate both as lenders and as brokers. Always try to enquire whether a broker works as a lender. This is important because brokers are usually paid a fee which is quite different from a lender's origination fee or other fees. Brokers can help you find a suitable home loan for the purpose of debt consolidation.
A home loan often involves several fees such as underwriting or loan origination fees, fees for broker, and transaction fees, settlement fees, and closing costs. Every lender or broker should give you an estimate of the required fees before hand. Most of these fees are negotiable. Some dollars are paid when you apply for a loan (such as appraisal fees or application fee), and others are cleared up at closing. You can also take a loan to pay these fees but that won't make sense as it will increase your loan amount and total cost. You may search for "No cost" loans, but they usually involve higher interest rates. You should also enquire about each fee in details. Several items may be taken together indiscriminately into one fee. Take care to find out what each fee stands for.
Once you know different offers, negotiate for the best deal that you can afford. Debt Consolidation loan for a home owner can be avoided by a careful selection of the home loan lender.
Debt consolidation loan for home owners is not a wise solution, as taking a loan when you are already debt struck , is a thoughtless step ahead. For a better choice, opt for free debt consolidation counseling and advance towards a debt free life.