When you are taking out a mortgage or refinancing your old mortgage it is important to ask the lender the right questions. The first thing you should so is make sure that they have disclosed all the terms of the loan and notified you of the APR. The most basic principle is that according to the truth in lending act a lender must disclose all of this information to you prior to the closing. If they refuse to or surprise you with additional fees at closing the lender is not looking out for your best interest and you should walk away.
In the situation that you cancel the loan and walk away you are required to be paid back all the fees you have paid with the exception of the application fee. Some lenders may refund this amount and you should ask about this while you are determining the other terms of your loan.
Remember that the law is on your side when a lender does not disclose any information to you that you requested. By asking the right questions early and keeping your eyes peeled you will be able to figure out if a lender is looking to take advantage of you, many times before it come to closing.
By: Groshan Fabiola