Should You Always Avoid Prepayment Penalties?
Prepayment penalties, also known as cancellation fees, are one of the classic pitfalls that await the unwary borrower. All too often, a homeowner selling or refinancing their home has been stunned to discover that they first have to pay a penalty of several thousand dollars to get out of their current mortgage.
A prepayment penalty is a fee assessed for paying off part or all of your mortgage ahead of schedule. Often, borrowers aren’t even aware their mortgage has one until they trigger its provisions – although required to be disclosed by law, they often get lost in the stacks of papers that need to be signed at closing.
simple steps to prepare yourself for the loan application process
As a borrower, everyone likes to get the best deal and have the loan application process completed without any delay. If you can locate an efficient lender or broker then you may not come across any problem in your transaction. But you should be able to judge the services of the lender or broker. While you can avail the services of the best lender, it is also your responsibility to make the process smooth and fast from your end.
The prerequisites for a mortgage loan application
A Mortgage Loan Application is a form used by the lender to gather the financial information about the borrower, which enables the borrower to qualify for the mortgage loan.
Mortgage loan application form requires the following information:
- Purchase price or value of property.
- Loan amount required.
- Your gross annual income.
