What Are the Best Sources for Independent Mortgage Advice?

You should seek independent mortgage advice from financial and legal professionals who will not benefit directly or immediately from your decision to choose one mortgage product over another. Independent financial advisors can provide you with good information on whether a particular mortgage product will benefit or harm your long- or short-term financial goals. An experienced real estate attorney can review the terms of the mortgage and explain to you your legal and financial obligations under the contract presented by a mortgage lender. The real estate attorney can also explain the risks and pitfalls of choosing a particular mortgage. Finally, not-for-profit organizations in your community may provide independent mortgage advice in the form of housing counseling.

Taking out a mortgage in order to purchase a home or other real estate is a significant financial undertaking. If you are already working with a financial advisor, be sure to make an appointment with him to discuss your mortgage plans. He can evaluate your financial picture and offer independent mortgage advice regarding the financial implications of your choice of mortgage. In some cases, he may even advise you to not take out a mortgage at this time but to wait for more favorable interest rates or to first improve your financial or credit situation.

Working with a good real estate attorney is an essential part of responsibly buying real estate. An attorney does not actually issue loans or receive a commission on your real estate purchase, but can be an excellent source of independent mortgage advice and has the ability to evaluate whether a particular mortgage is in your best interests. If you are unclear on certain legal concepts, it is probably a good idea to not rely on the explanations offered to you by a mortgage broker or lender. Ask your attorney to clarify those issues that you do not understand.

In some places, social service organizations and private charities offer housing counseling to individuals who wish to buy or rent a home. In some cases, these agencies are recognized by government housing authorities as good sources of independent mortgage advice. Their counselors can help you review your financial situation along with any mortgage products that interest you. They can help you break down your mortgage payments so that you understand exactly how much you will need to pay each month in order to keep your mortgage in good standing. Additionally, they may be able to advise you about mortgage programs sponsored by the government that may provide you with better terms than those offered by private financial organizations.