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Tips on Applying for a Loan
The Kansas Association of Mortgage Professionals (KAMP) encourages consumers meet with a registered mortgage professional working for a licensed mortgage broker company when beginning the loan application process, whether refinancing, consolidating debt or purchasing a new home.
Additionally, KAMP recommends that consumers consider the following tips prior to moving forward with the mortgage process:
- Be aware of all fees and closing costs that you will incur. It is important to understand that financing a mortgage is not free. Consumers need to ask their mortgage originator to provide, in writing, all costs that will be incurred in order to complete the process.
- Understand the new program that you are getting into. If, when refinancing, your old loan was a “fixed” program and your new loan is “adjustable,” make sure you have a clear understanding of how much your new monthly mortgage payment will be, and the exact period of time that the monthly payment is good for.
- Determine exactly how much your monthly payment will be reduced. Consumers should compare the total remaining payments of their existing loan to the total payments required on the new loan request plus closing costs to determine the actual savings.
- Shop and Compare. Consumers should call two or three originators to compare interest rates and the total cost of closing to the terms offered by their current lender.
- Ask how long the offered rate is good for. Whatever rate or term your mortgage originator offers, be sure to get the information in writing, and also ask for a written guarantee of how long that rate is good for, i.e. 30 days, 45 days, etc.
- Ask about the credentials of your mortgage originator. Ask your mortgage originator if they are a member of the Kansas Association of Mortgage Professionals, whose members adhere to a strict code of ethics. You may also want to consider whether your loan officer is a Certified Residential Mortgage Specialist or a Certified Mortgage Consultant.
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