Great point about checking how the lender applies extra payments—I see people overlook this all the time. Another quick tip: set up automatic transfers specifically labeled as "principal only." Most banks have an online option for this, and it saves you the hassle of calling each time. I usually suggest clients confirm after the first payment or two, just to make sure it's working right... better safe than sorry.
Definitely agree with verifying those first couple payments—seen too many cases where banks mistakenly apply extra payments to future installments instead of principal. A couple more things to keep in mind:
- Check if your lender has any prepayment penalties or restrictions; some mortgages have sneaky clauses buried in the fine print.
- Keep an eye on your monthly statements or online portal regularly. Errors happen, and catching them early saves headaches down the road.
Better to stay proactive than deal with surprises later...
Good points here, but honestly, I think the fear of prepayment penalties is a bit overstated these days. When I was closing on my first home last year, I kept hearing horror stories about hidden clauses and sneaky penalties. So naturally, I grilled my lender about it—probably drove her nuts—but turns out they're pretty rare now, especially with conventional loans. She mentioned they're more common with certain specialized loans or sketchy lenders, but for most standard mortgages, it's not really a thing anymore.
Still, you're right about checking statements regularly. Just last month, my bank double-charged me for escrow payments. Took a few calls to sort out, but catching it early definitely saved me from bigger headaches later on. Guess it's always good to stay alert, even if some warnings feel a bit overblown.
Yeah, I remember panicking about prepayment penalties too—probably spent way too many nights googling horror stories. Turns out my bigger headache was a random fee for "document processing" that nobody could explain clearly. Anyone else find weird charges like that popping up?
Hah, document processing fees are the worst—I've seen those pop up more times than I can count. Usually, they're just vague enough to make you suspicious. Funny thing is, when I ask lenders directly, they often stumble around with half-answers. Makes me wonder how many of these fees just slide by unnoticed... Did anyone here manage to successfully get one of these random charges waived or explained clearly? Curious if persistence pays off.
