For example, some lenders have recently been more willing to waive proof of income when making a mortgage. But, they may charge a higher interest rate to cover the risk that the borrower may not be able to afford the mortgage. The customer however may save interest cost by making the effort to provide copies of tax returns and pay stubs.
Another example is that some lenders do not require their borrowers to pay their property tax and hazard insurance premiums into an escrow account. Consumers need to ask lenders if their monthly payments will include funds for such an escrow account. If not, borrowers need to separately set aside savings to meet these obligations.