Consumers likely are more comfortable comparison-shopping for microwaves than mortgages because the home-loan process can be cumbersome, with reams of paperwork, unfamiliar jargon, and of course, the rush to close and move to a new place.
The U.S. government is working to make the process easier. Since May, officials have been trying to simplify and combine two required forms that show would-be borrowers their final loan terms and costs before closing. The “Know Before You Owe” campaign, spurred by sweeping financial reforms in 2010, has produced two drafts of the merged documents that are still in testing phase.
Read entire article: http://www.signonsandiego.com/news/2011/nov/30/you-better-shop-around/
A piece of advice a very successful real estate investor once gave me: Don’t let the lender send you the documents to read and sign 2 hours before the notary arrives. A lot of brokers send the papers just hours before the notary arrives and it gives the borrower little time to read the documents and ask questions. People have reported that the loan officers told them the papers had to be signed today….etc… Well unless there is a very good reason the papers have to be signed immediately request the loan officer send you the papers at least 5 days before the notary will arrive. If you do not have the “savvy” to understand the documents you can have someone who is use to reading contracts: a friend, relative, lawyer, or a licensed real estate appraiser(www.socalappraisalserv.com) . Find someone who has no interest in the transaction to look these document over. You can also get a second opinion from a HUD-approved counselor at little or no charge. In San Diego you can call the Housing opportunities Collaborative at (800) 462-0503, someone will direct you to the right agency. 2 things to remember: never sign anything unless you understand it and this is the biggest investment you will ever make; ask for help.
Disclaimer: for information and education purposes only.
Green Real Estate Appraiser 