The 10 Rules To Follow When Getting A Mortgage

Posted by Elijah Murray on September 18, 2013

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  1. Get your paperwork in order sooner, not later. With few exceptions and at the very least, your last W2, paystub, and bank statement are needed. If you're refinancing, add in your last mortgage statement and homeowner’s insurance declarations page. Snap a photo of your driver license, too.
  1. Shop around but unless you really, really want 500 phone calls and emails per week, steer clear of lead generation sites like Bankrate, Lending Tree, and Lower My Bills.
  1. Avoid putting trust in people who wear ties to work. Rewind to 2008 if you need more of a reason than that.
  1. If you keep falling for the "rates as low as…" schtick, you kind of deserve the headaches that come your way. If it sounds too good to be true, it is.
  1. The general rule of thumb: banks charge more and take longer. Who do you think pays for their giant buildings and commercials?
  1. It does not matter what company name is on your documents. The ONLY things that matter are the interest rate, closing costs, and how much of your valuable time the process takes.
  1. Your Real Estate Agent knows about location. Your Mortgage Pro knows about your financial future. Don't let either step on the others toes. You wouldn't go to a mechanic to get your teeth cleaned.
  1. If you care about the environment, and want a faster transaction, work with a paperless lender. They care, too.
  1. If you talk to a Mortgage Loan Officer on the phone or in person, don't forget for one second that they are in Sales and get paid by charging you more.
  1. When the deal is done, immediately contact your lender and convert your payments to "Bi-weekly." This means you pay half the amount every 2 weeks as opposed to once per month. What it really means is you will pay off your loan significantly faster and save 10's of thousands of dollars in payments and interest. And, if you can add anything more each payment, it really accelerates things. Hello, Early Retirement!

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