Say NO to Pre-Payment Penalties!

Did you know that many of the mortgage companies will charge you a pre-payment penalty if you decide to pay off your mortgage sooner then the time period allowed? Did you know that this is a penalty imposed when refinancing as well? Don't let this happen to you! Make sure that your loan person or broker makes it clear that you do not have one. Many times people do not find out until they get to the closing table. It's too late then unless you want to walk away and then you will have the sellers looking to sue you for the escrow money. One way or another,you lose! Here is an example: Joe Smoe has a $6,000.00 pre-payment penalty if he pays off his mortgage before three years. Now you and I know not many people wil have the capability of paying thier mortage that quickly but what you may not know is that you will be charged the penalty even if you want to refinance the loan. So if Joe needs cash a year after he secured the mortgage and he decides to refinance he will have to pay that pre-payment penalty. The exception to this is that sometimes if you refinance with the same bank or mortgage company they will remove the penalty. Be sure to talk with your realtor and make sure that he or she knows that you are not interested in a pre-payment penalty. Check with a few mortgage people to see if their company utilizes one. It is a lot of money to lose!

Why you NEED a Realtor.

It is so important to find an experienced Realtor when you are looking to buy or sell a home. When you are looking to buy a home your realtor is there to help represent you thru the entire process. A good realtor knows how to decipher your wants and needs. He or she is there to protect you. They will assist you in writing your offer. They will be there for your home inspection and termite inspection or any inspection that the home may require. They will help you when you have hard decisions to make. They will guide you thru the mortgage process along with your mortgage representative. They will help you with the utility information neccessary to transfer your name to them. If you are looking to sell your home you need a competant Realtor who work their hardest to get you the highest price in the quickest amount of time. They will be invaluable to you. They will help negotiate your offers and they will be there for your inspections. You want to be sure that you are hiring a full time professional. You know the adage that you get what you pay for? For this very reason it is good to look for a full service, no baloney kind of company instead of the discount, sales gimmick companies. Utilizing the services of an honest realtor is a FREE service to buyers. The sellers pay the professional fees. Why would you ever want to "go it alone?"