News Shorts

Comparing Loan Offers

Once you are ready to move forward with your home purchase, it’s time to choose a mortgage loan and a lender. By getting loan estimates from multiple lenders, you can compare to see which lender is offering you the best deal. Contact the lenders you are considering and tell them you are ready to request a Loan Estimate. You don’t need to provide written documentation yet (though it’s always a good idea to share what you have). You just need to provide six key pieces of information to begin your loan application:

•Your name •Your income •Your social security number (so the lender can check your credit) •The address of the home you plan to purchase •An estimate of the home’s value (typically, the sale price) •The loan amount you want to borrow (the home price minus your down payment amount)

Ask each lender for the same kind of loan with the same features. You want to be comparing apples to apples when you get your Loan Estimates. At this point in the process, you should already have a pretty good idea of the kind of loan and features you want:

•Loan type •Loan term •Rate type (fixed or adjustable) •Down payment amount/loan amount •Points / credits •Rate lock period

If a loan officer suggests a different type of loan or features than what you asked for, ask questions. It’s possible the loan officer has found a better loan for you, but they may also be trying to sell you a particular type of loan for other reasons.

•Ask the loan officer to explain why they think the new loan is a better deal for you. •Ask the loan officer to give you Loan Estimates for both the original loan you asked for and the new loan they are suggesting, so you can see the differences in costs and risks. •Don’t make any decisions until you feel confident you understand the pros and cons of all of the options you are considering.

Lenders shouldn’t be asking you to pay any substantial upfront fees at this point

By law, the only fee that lenders are allowed to charge you before issuing a Loan Estimate is a small upfront fee to pay for pulling your credit report. The fee will usually be no more than $20. If a lender asks you to pay for anything other than a credit report fee in order to get a Loan Estimate, this is against the law. You might choose to work with another lender. You can also submit a complaint to the CFPB. Lenders must wait to charge you additional fees until you choose a loan offer and tell the lender that you are ready to move forward with your application. Once you tell a lender that you are ready to proceed, the lender you choose may charge you additional fees, such as an application or appraisal fee.

Never sign a form with blank spaces

When you sign a loan application, you are saying that what is on the form is true. Don’t let anyone persuade you to sign a blank form or a form with any blank spaces left to be filled in later. (consumerfinance.gov)

4 Steps To Reach Your

Saving Goals

Whether you’re planning for a short-term goal (e.g., emergency fund, home project) or a long-term goal (e.g., retirement), planning can help you succeed. “It’s never too late to start making savings a priority. We want to help our members meet their short- and long-term goals, and there are several ways they can get started,” said Jaspreet Chawla, Senior Vice President of Savings Products at Navy Federal Credit Union.

1. Make SMART goals

A SMART goal can help you make a plan you can achieve. It can help you focus on what it will take to reach your goal and make a plan that’s doable. SMART stands for Specific, Measurable, Attainable, Relevant and Timely. So, whether you’re saving for a new phone or a down payment on a house, make your goal specific, set a deadline, decide what it will take to reach it and then make sure it’s realistic.

2. Find ways to make small changes

The next step in your plan should be to look at how much you can afford to save and if there are expenses you might be able to cut. For example, are there subscriptions or streaming services you don’t use? Can you ask insurers, or services like internet or phone providers, for a discount on your plan? If you make small changes gradually, you’ll be more likely to stick to your plan. Keep in mind, cutting back on certain expenses doesn’t have to be forever - you can choose some for a temporary break.

3. Separate and automate your savings

It can be easier to see your progress if you set up two accounts: a checking account for regular bills like rent, student loans and car payments and another account for everything else. Once you’ve decided what you can afford to save, consider setting up an automatic transfer. You’ll only have to do it once and then your savings will grow automatically. “This is a guaranteed way to boost your savings,” explained Chawla. “If you have direct deposit, consider sending a set amount into your savings each pay cycle. This way you’ll be consistently saving without even thinking about it.”

4. Earn more on your money

If you’re looking at short-term savings goals (e.g., a dream vacation), you might want to consider putting your money into a certificate account. In general, certificates typically earn higher dividends than regular savings accounts, so you may reach your goal even sooner than you expected. “By making small, habitual changes over time, you will set yourself up for success - it’s never too late to start,” added Chawla.

The best time to start building your future is now. Making SMART goals can help make saving more doable. (BPT)