5 Tips for Saving on Your Mortgage Loan

Purchasing a home does not have to empty out your bank account, especially if you know the following ways to save, save, save!  Here are some things that buyers should know as they go through the mortgage loan application process:

Ask for the “Good Faith Estimate” early.  This is the document that reveals just how much your loan is going to cost you.  It won’t be released until it is officially “complete” and all the questions are answered so push yourself to find answers right away to all the lender’s questions.

Read and ask questions about the fine print. Identifying and negotiating all the fees and charges can cut the costs associated with your mortgage loan.
Shop title insurance. Visit websites like www.Closing.com, where you can comparison shop.

Get a commitment.Insist that the lender or loan broker agree that there won’t be any other charges on the HUD-1, which most borrowers don’t see until they are at the settlement table. “If [the lender] won’t agree to that, you have to be a little suspicious,” says Claire Fennessey, senior vice president of Entitle Direct.

Question flood insurance. If a property requires flood insurance, contact a civil engineering firm with experience with the Federal Emergency Management Agency’s resources to ensure that they aren’t paying too much. Eligibility for a preferred risk policy can cut costs substantially.

Source: Chicago Tribune, Mary Ellen Podmolik (07/05/2009)