5 Tips for Shopping for a Mortgage...A Little Late

Posted by Jon Prior on 7/31/09 at 8:55am

In order to help consumers make wise home buying decisions and save the housing market from collapse, the Federal Reserve Board released its “5 Tips for Shopping for a Mortgage.”

On Wednesday.

It’s kind of like installing the fire extinguisher when your house is a smoldering pile of rubble. And, yes, the pun is intended. So without further ado, the Five Tips for Shopping for a Mortgage We All Should Have Paid Attention To A Few Years Ago.

One: Know what you can afford. What? You mean I can’t afford a $500,000 town home on a waiter’s salary?

Two: Shop Around – Compare Loans from Lenders and Brokers. The tip reads, “Neither lenders nor brokers have to find the best loan for you.”

Three: Understand Loan Prices and Fees. Or, you can just sign your name. No one can make out all the fine print anyway.

Four: Know the Risks and Benefits of Loan Options. You mean I'm going to have to pay HOW much?

Five: Get Advice from Trusted Sources. Like your friendly, neighborhood Federal Reserve.

Next week: 5 Tips on How to Run a Car Company.