Lack of information has always been a major problem for mortgage borrowers. They may not understand:

  • the mortgage and how it works, especially if it’s an ARM, interest-only, or both;
  • the players they deal with, whether loan officer or broker, and the significance of the difference;
  • the pricing, which in addition to the interest rate includes lender fees of different types, and third-party fees for required services, such as title insurance;
  • the process, from inquiring, to applying, to locking, to processing, to closing;
  • the disclosures mandated by government, which can help only the few who understand them;
  • the loan contract, full of legalese, which borrowers usually don’t get to see until the closing.
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