Austin Mortgages: Exciting and Confusing
Getting a mortgage is exciting stuff! The best part of doing Austin home loans is the excitement people have about buying or refinancing a home. Of course, along with that excitement comes the angst and the costs. When people begin the house hunt, it’s all about the excitement of the search and the thrill of the possibilities. The adrenaline is still pumping through the offer and contract stage. It’s when a buyer gets to the mortgage and financing part that the heart skips a beat or two.
Mortgage calculators are great for determining the monthly payment, but it seems things get a little murky when it comes to closing costs of Austin home loans. Why does closing a mortgage seem so complicated and just what are the costs?
Choosing and Austin Mortgage Broker
First, a mortgage is a huge investment. Because of the magnitude of the transaction it isn’t—and shouldn’t be—a simple act. While it may feel like the lender is asking the buyer to jump through increasingly smaller hoops, the procedures are in place to protect the buyer, too. A lender is not only determining credit worthiness, but also assessing what is the best loan product for the long term financial health of the buyer. At least they should be. If a buyer feels like the lender doesn’t have his best interest at heart, than that buyer should find a new Austin mortgage lender.
Costs associated with Austin Mortgages
The closing costs include what is known as “statutory costs” or fees that go to state and local agencies. There is no way to get around these costs, even if the house was paid for in cash. There are also fees paid for insurance and inspections. The biggest cost at closing is usually the down payment, less the deposit and binder paid at the time of contract.
Costs from the lender include application fees, points for lower interest rates, origination fees and the price of the credit reporting. These costs can vary greatly from lender to lender. The buyer needs to take the time to read the fine print and be sure the lender has accounted for all these costs.
Finalizing your Austin Mortgage
A mortgage lender should give the buyer a Good Faith Estimate of closing costs before closing and the costs should not change dramatically at the actual closing. Also, a buyer should keep in mind that the later the closing date in the month, the less interest has to be paid at closing. A buyer should allow plenty of time for the closing appointment (1-2 hours), and ask questions about anything he or she doesn’t understand.