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.