| Closing
on your loan can be a very hectic time. Take the necessary
steps to ensure that all your documents are correct before
you sign them. Most people read their loan documents in
the closing meeting just before they are signed.
This is not recommended because of the added pressure
of the situation. It is best to get a copy of the documents
before the meeting, and give yourself the time you need
to review them properly.
If there are any provisions in the loan contract that
you do not like or if you have any questions, be sure
to address them before you sign. It is better to negotiate
or turn down the loan than to agree with something you
do not feel comfortable with.
The thing to remember is that your home is on the line.
A lender is supposed to give you certain information in
order to comply with the federal Truth in Lending Act.
You should get this information either when you apply
for the loan or shortly thereafter.
Under the Act the must provide you with information on
the following:
- The annual percentage rate (APR)
- points
- closing costs
- the amount being borrowed
- the amount owed
- interest paid
- special terms (i.e. variable interest rate)
- balloon payments
- pre-payment penalties
Once you have gotten the loan, make sure you keep track
of your documents and records. You might need them if
there are problems later in the loan term. You might also
forget some very valuable information that could save
you time and money.
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