Applying for a Mortgage

Not much happens in the world until a lender says “Yes.” There’s no question, taking out a mortgage to buy a home is a big deal. Just like you probably shouldn’t buy the first house that you see, you might want to consider shopping around mortgages to get the best rate. What can seem like a small difference in interest rates can turn into thousands of dollars down the road. There’s more to a mortgage than the rate, too. Let’s look at “points” in a mortgage. Often times lenders will offer points — this is shorthand term meaning one percentage point of the total loan– to reduce the overall interest rate. With all of these different ins and outs of mortgages, it’s good to understand your options. Click here to learn the details.

Let’s look at some specific questions sent in by DearMonty readers from across the country. Read more Q&A articles about the “Negotiating” stage of the Home Buying process:

  • 10 facts to find the best mortgage loan

    Reader Question: How can I find the best mortgage loan? Monty’s Answer: I answered this question several years ago, but it bears repeating. Comparing the cost of mortgage loans is a challenge for most mortgage shoppers. Do this before you look for your home. The most helpful lender may also have the best pre-approval letter.…

  • Appraisers evaluate appraisal management companies

    Reader Question: Your recent article about why consumers cannot pick their appraiser was excellent, but only reviewed the process from the lender point of view. Residential appraisers hold a more educated viewpoint on appraisal management companies (AMC’s) than the lender as we do the work. My question is why didn’t you interview real estate appraisers?…

  • Why can’t I pick my home appraiser?

    Reader Question: A lender is telling me I cannot pick my home appraiser I know to be a solid appraiser, and that the lending rules have changed. We have not purchased a home for fifteen years. Is this true? And if it is true, why did the rules change? Jerry G. Monty’s Answer: The simple answer…

  • Ten facts mortgage shoppers should know

    Reader Question: How can I compare the cost of financing from different lenders? Monty’s Answer: Comparing the cost of mortgage loans is a challenge for most mortgage shoppers. Even when you think you have the answer, new information appears, and you are back to square one. Here are ten facts to help you lock-in the…

  • Low appraisal not disclosed to homebuyer

    Reader Question: I had a low appraisal. I recently closed on a home for $180,000. I just learned the appraiser along with the agent and lender adjusted the appraisal from $176,000 to $179,000. They never informed me of the original price. Had I been informed, I could have negotiated for the $4,000. What can I do…

  • Timing your retirement home purchase

    Reader ​Question: Monty, our current home, valued at $700,000+ has no mortgage, and we plan to purchase a replacement home for $650,000 or less. Because we are retired and our income is only $72,000, we do not qualify for a mortgage. We have failed to find a source for a ‘bridge loan.’ We do have…