Friday, November 03, 2006

The High and Lows of Getting a Mortgage

Not too long ago, I was discussing the nightmare we experienced during the purchase of this home. Words can't explain the emotional highs and lows that we lived through. After our initial mistake, we decided to use the bank that I had been employed by. This gave us an advantage. I knew the people involved with the leg work and that made it a lot easier. The intial proceeding wasn't so smooth. Let me tell you why.

The previous owner of this home was wealthy. He was a funny kind of wealthy. He wasn't frugal. He bought things without looking at the price. This was a big red flag we overlooked. He suggested we use his broker. We complied and started the process, giving the broker what he asked for. Things were fine at first. Then he would call up and ask us for paperwork at the last minute. It was really weird the way he tried to rush certain things along. I started reading the paperwork. The paperwork stated the transaction would have a mortgage with the interest of........11%. What???? That was ludicrous. So, I called the mortgage broker and he told me the previous owner (who's primary income is from buying and selling real estate) had been paying this for years and never complained. I replied, "Well, perhaps he never read the paperwork!" It could also be that he didn't care. Whatever the reason, that is an insane amount to pay for 30 years, especially when you are putting down $40,000 as a down payment and have excellent credit.

That was my story. Your story doesn't have to be so crazy. There are sites that not only have forums where people share war stories, but they provide tips, resources and helpful industry content. Visiting a site like this can help you through the journey of obtaining a mortgage loan.

Whatever you decide to do, always read the fine print and do a lot of research. Buying a home is usually the biggest purchase most people make in their life!

1 comment:

Anonymous said...

I'm so glad that our house buying days are over. When we bought our house the mortgage rate in france was around 11%!! Fortunately for us the government stepped in after a couple of years and lowered the rates.