ACCC Helps Consumers Communicate with Mortgage Lenders

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American Consumer Credit Counseling provides consumers with tips on how to navigate mortgage lenders when trying to purchase a home.

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Securing a mortgage loan is a major commitment, and consumers should shop around to find out what loans are available to them and to make sure they fully understand and trust their lender.

A mortgage lender is a financial institution that offers and underwrites home loans. Types of mortgage lenders include credit unions, banks, and mortgage companies. The standards, rates and loan programs vary depending on the mortgage lender. To assist, national non-profit American Consumer Credit Counseling explains how consumers must prepare when communicating with mortgage lenders.

“It is important that consumers go into a meeting with a mortgage lender knowing what to ask and what financial information they need to provide,” said Steve Trumble, President and CEO of American Consumer Credit Counseling. “Securing a mortgage loan is a major commitment, and consumers should shop around to find out what loans are available to them and to make sure they fully understand and trust their lender.”

According to The Balance, the average monthly payment on a mortgage in the US is $1,030, which includes taxes and insurance. The average monthly payment for principal and interest is $853 per borrower. The Association of Realtors found that the average house purchase is $235,000 in the U.S. with an average down payment of 10 percent.

ACCC helps consumers communicate with mortgage lenders.

1.    Prepare – Get familiarized with terms and conditions before talking with a mortgage lender. Understanding terms such as interest rate, annual percentage rate (APR), adjustable -rate mortgage (ARM), fixed-rate mortgage, and hybrid adjustable- rate mortgage, will be helpful for a more efficient conversation.
2.    Shop around – Before making a decision, it is helpful to make appointments with several lenders to find the best deal. This will allow a client to compare different rates, fees, and contracts.
3.    Have the information ready – Lenders will want to know about their client’s finances, including their income, monthly fees, and additional monthly debts. They will also need to see documents, such as W-2 forms, bank statements, and employer information.
4.    Inform them of your budget – It is important that consumers inform the lender of their budget and price range. Clients should also ask if they qualify to borrow that amount.
5.    Ask questions– It is helpful for the client to ask a lot of questions in order to understand what the mortgage process will look like, as well as to understand all the additional fees. This will help the client avoid hidden or surprise fees.

ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

  • For credit counseling and student loan counseling, call 800-769-3571
  • For bankruptcy counseling, call 866-826-6924
  • For housing counseling, call 866-826-7180
  • Or visit us online at http://www.ConsumerCredit.com

About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit http://www.consumercredit.com/financial-education.aspx

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Marissa Sullivan
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