Credence Mortgage, Inc.

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"You did a great job of thoroughly explaining the process, the fees, and of being responsive to my continued questions and concerns. Thank you!"

- - Monica H., Joppa, MD

How to avoid:
	>	Getting locked in at a higher rate
	>	Surprises at the settlement table
	>	Passing up the best deal
	>	Missing the best offers
	>	Making a bad assumption
	>	Letting a good deal slip through your fingers

Avoid getting locked in at a higher rate

A broker or lender can quote you a low rate; unfortunately, many fail to deliver the rate they quote. The market changes daily, and because of this, a broker and lender who is slow to lock in your rate could miss the window and have to lock you into a higher rate than they originally quoted.

Avoid this costly mistake by getting your quote in writing. Credence Mortgage issues a Loan Origination Agreement outlining the total cost of your mortgage, including the locked-in interest rate.

Avoid surprises at the settlement table

The interest rate is only one component of the total cost of your mortgage. Several other fees and charges can apply, and may be very costly. Many brokers and lenders omit these fees and charges from their quotes, leaving surprises waiting for you at the settlement table.

Avoid this costly mistake by asking questions; ask for a list of all fees associated with your mortgage. Remember to get anything quoted to you in writing. The Loan Origination Agreement issued by Credence Mortgage lists in detail ALL fees and charges involved with your mortgage, eliminating any surprises at the settlement table.

Avoid passing up the best deal

There are many different loan programs available in today's market. A broker or lender is going to quote you a rate on what you ask for. However, the program that you think you want may not always be the most cost effective. For example: a 30-year mortgage with a lower interest rate but higher fees may end up costing far more, if you sell your house within 10 years, than a mortgage with a slightly higher rate but lower fees.

Avoid this costly mistake by asking questions and keeping an open mind. Think about what goal you are trying to achieve by getting a mortgage, i.e.: lower monthly payments, saving money over the life of the loan, etc. Know what you are willing to spend before you call, and ask about different loan programs that fit within your budget and help you reach your goal.

Avoid missing the best offers

The lowest rate provider in one loan category may not have the lowest rate in all categories. A lender that offers the best deal on a 30-year fixed-rate mortgage may not offer the best deal on an adjustable rate mortgage (ARM). Many lenders will not disclose that they are not offering the lowest rate on a different loan program.

To avoid this costly mistake, shop around. If you decide to change loan programs midway through the process, remember to compare the rate offered by the lender you are currently locked in with to other lenders in the ARM category. Don't commit to a new loan program with the same lender before knowing what other lenders may offer.

Avoid making a bad assumption

Plans can change, especially if you are purchasing a home. You could decide on a house more or less expensive than originally planned, a different budget than originally decided, etc. However, rates and costs will change depending on your loan amount, down payment amount, etc.

Avoid this costly mistake (and surprise) by being prepared. Usually when purchasing a house, you get a quote based on the amount of the mortgage needed for a specific house. If you later choose a different house, be prepared for the rates and costs to change from the quote you received for the first house.

Avoid letting a good deal slip through your fingers

Everyone likes a day or two to make big decisions, and a mortgage definitely qualifies as a big decision. However, with the volatile interest rate environment, rates change from day to day. A quote given on a Monday is good for that Monday; come Tuesday, that rate may no longer be offered at the same cost. Likewise, the interest rate offered by one lender may not be offered by all lenders. A specific lender may offer a lower interest rate than their competitors.

Avoid this costly mistake by understanding the market and industry. Interest rates go up and down on a daily basis, so expect that a quote on a Monday will not hold true on a Friday if not locked in. Also, understand that not all lenders offer the same rates and loan programs. Don't be afraid to shop around before committing to a specific quote.