| We all need to borrow money in order to purchase | | | | ask about any clauses like that in your mortgage. |
| our homes, hardly anybody pays cash for such a large | | | | Finally look at any escrow payment clauses. |
| purchase, which means we need a mortgage. But | | | | Sometimes escrow payments require a portion of |
| there are several questions you should ask before you | | | | property taxes to be paid before hand or certain |
| sign that mortgage and that's exactly what I want talk | | | | homeowners insurance policies to be paid before hand |
| about in this article today. | | | | and you'll need to know specifically what your escrow |
| First be sure to ask about points. Points are a | | | | payment clauses are before you sign the mortgage. |
| percentage of the amount of the loan that are paid to | | | | The best thing to do when signing a mortgage is to |
| the lender at the beginning of the loan. The bank is not | | | | have an attorney check it over to make sure |
| required to charge points, they do so because they | | | | everything is on the up and up. It's best to use a |
| can get away with it if you let them. Many times you | | | | lawyer that has experience with real estate law |
| can negotiate them away by threatening to go to | | | | because not all lawyers are created equal and like |
| another bank who may be charging fewer points. | | | | anything else in life they specialize in certain areas. It's |
| The next question to ask is about prepayment | | | | usually not good enough just to give your mortgage to |
| penalties. Most of the time this won't be much of a big | | | | your regular attorney, instead insist on somebody who |
| deal because most loans give you the right to pay off | | | | has experience with real estate because they can do |
| your loan in full without any penalties. But make sure | | | | a better job and they'll do a quicker job which means |
| and ask because sometimes a bank may try and slip | | | | you'll pay less since lawyers charge by the hour. |
| this one in because they know that people like to | | | | Buying a house is a big responsibility and borrowing |
| refinance their loans and this is a way for the bank to | | | | money can be intimidating to many people but it |
| profit when you do that. | | | | doesn't have to be if you follow the simple tips that I |
| Next look at any do on sale clauses. These clauses | | | | outlined in this article today, then you shouldn't have |
| usually mimic the prepayment clauses in that they | | | | any trouble in the long run. Remember, when in doubt, |
| attach conditions or payments that are due when you | | | | ask questions! |
| sell your house or refinance your loan, so be sure to | | | | |