what should i look for before sign the Mortgage Paper ???? anything bad ????

Question

First time buying a home..
what should i look for before sign the Mortgage paper

Answer 1

Do not sign the paper without talking it through with your lawyer!

Answer 2

Prepayment Penalty Rider.

See if this is a part of the package. This will dictate the minimum time you must keep this loan. If you refinance or sell prior to that time there may be a penalty which is usually 6 months of interest.

The prepayment penalty could be considered HARD (due whether you refinance or sell before the minimum period is up), or SOFT (due if you refinance before the minimum period expires but not if you sell). Some are a combination of the 2 (hard for 6 months, soft for the remainder of 2 years).

This is something that should have been CLEARLY explained LONG before closing...in fact...at the time you are given the quote.

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Answer 3

the prepayment penalty clause is usually very small - and indicated by a checked box! Look for it and don't sign.....

Further, watch out for something called MPPI (Mortgage Payment Premium Insurance)......not PMI - MPPI.....don't sign it, don't discuss it period....It's just the latest way to get an extra $100/mo or so out of you.

Make sure your are getting a fixed rate - no arm - or balloon payments,.

Who's handling escrow and be sure the taxes and home owners insurance is accurate

Answer 4

do not take out an fairness line of credit, as that could merely bury you deeper in debt. talk to a relied on community section loan broker service and notice in case you are able to refinance your loan. that is going to fee you on the ultimate table, even with the undeniable fact that it may re-set the finance clock and allow you to initiate yet back. don't be nervous of an interest in basic terms loan, yet be confident the fee is fixed while it locks in in 3-5 years.

Answer 5

I know it's long and it's a pain, but you should really look at the whole thing. Read it start to finish and ask whatever questions you need until you understand it. That way you aren't just skimming it looking for a hidden weasel clause (and perhaps miss it), because you'll already know what's there.