Educating Your Self about a Manufactured Home Mortgage

If you’re thinking about purchasing a manufactured home it pays to educate yourself about the mortgage process. Buying a home may well be the largest purchase you ever make so it only makes sense that you need to understand what’s involved to protect your financial investment.

There is a lot involved when getting a mortgage and the vast majority of lenders will help you understand what is going on throughout the process. They are not out to get you or trick you into signing a contract that could cause you financial harm. It’s not in their best interest to do this. Lenders are in the business of lending money to make money by charging interest. But for them to ensure that the quote and contract they are proposing works for you they need to have a clear view of your current financial situation. That’s why it is important for you to be upfront and honest about your financial state and what you need to make your homeownership dream come true.

The first thing most borrowers look at are advertised interest rates. This is natural because lenders use this heavily in their advertising, and honestly it’s what most people talk about when discussing their home loans. While the interest rate does have a large affect on the terms of the loan there are other costs that every borrower needs to be aware of.

The largest cost associated with any home mortgage is the closing costs. All home lenders are required to provide potential borrowers with a Good Faith Estimate (GFE) once they have completed the loan application. The GFE is paper work that spells out in detail the closing costs and fees associated with the loan. It should also have information about the interest rate and terms if you should accept their offer. Any lender that doesn’t provide a GFE should be avoided.

Most new manufactured home buyers are also unaware that they can actually bargain with their lender to reduce the interest rate. This is done by purchasing points where the borrower pays extra money (buys points) to reduce the rate. The more points bought the lower the interest rate can go. While buying points sounds like a good idea any borrower need to do their homework to make sure the extra outlay of money makes sound financial sense.

The competency of the lending officer should also be kept under scrutiny. Most are highly professional and will provide exceptional service, but they are human and can make mistakes. Be sure to get everything in writing and make copies of any important paperwork. Document everything so there are no surprises at the closing. And if the broker doesn’t seem to be able to answer questions and provide professional service ask to speak with someone else or take your business elsewhere.

Taking the time to educate your self about a manufactured home mortgage can make the process go smoothly by taking the guess work out of understanding what the lender is offering. Your home is the most important financial asset you will probably ever purchase, protect it and your families future before you sign those papers.