Video: Tips for Mortgage Loan Process

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Set your house closing for the end of the month. Learn what to keep in mind before and during the mortgage loan processe in this free personal finance video from a loan officer and mortgage closing specialist.

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Video Transcript

There are several tips to remember when obtaining your mortgage. The first is to close at the end of the month. Prepaid interest is going to be one of your closing costs. Prepaid interest is simply the interest that accrues on your loan from the time of loan closing until the end of the month. Closing at the end of the month will significantly reduce and minimize the amount of prepaid interest that you'll have to pay. The second is staying in touch with your lender. It is so important to monitor the progress of your loan, to monitor the status of your loan, and to immediately respond to any inquires or requests for documentation from your lender. This is the number one reason that loans don't close on time, and being responsive and attentive as indicated earlier is going to be one of the key components to closing it on time. The next thing is to look for hidden fees. Many companies will charge extra closing costs on the HUD Statement. It's important to take your time when you're looking at the Good Faith Estimates, and I would recommend at least getting three Good Faith Estimates and comparing them side by side so that you can reduce the closing costs that you pay on your mortgage. The last and final tip is to research your lenders and programs. There are programs out there that require no down payment, that basically there are government guaranteed loans that don't take credit into consideration, it doesn't determine the loan at all, the credit score. There are mortgage loans that don't require any PMI, and there are also mortgage loans that have significantly lower closing costs than others. So it would really pay to take your time and research the different programs that are out there that are offered to borrowers.

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Tips for Mortgage Loan Process

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