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A short course of lectures

YSPs Are Not Bad for the Consumer.Odds Are, Your Mortgage Will Be Sold.Mortgage interest rates can be a mystery. Not All Credit Scores Are the Ones Lenders Use.Adjustable-Rate Mortgage Indexes Are Easy to Follow; Fixed-Rate Ones Are Not.Low-Money-Down Loans and Interest-Only Don't Mix.When Comparing ARMs from Different Lenders, Pay Close Attention to the Starting Rate.Your Old Appraisal Doesn't Matter.The Advent of the AUS Led to Stupid Loan Officers.When Getting Rate Quotes, Get Quotes on the Exact Same Rate, Term, and Type.You Don't Have to Be a Veteran to Qualify for a VA Loan.Using Terms Used Only in the Lending Industry Will Put Your Loan Officer on Notice That You're Not to Be Messed Around With.When You Are Constructing Your Home, Your Permanent Mortgage May Not Be Locked In.All Mortgages Must Be Run Through an AUS.Watch the Nonrecurring Fees for Junk Fees.Writing an Explanation Letter to the Credit Bureau Does Absolutely No Good."Declining Markets" Cause Calculators to Malfunction.Brokers May Try to Keep Who the Lender Is a Secret Until the End.Your Mortgage Broker Doesn't Use 1 00 Lenders.When Rates Are Low, It's Better to Secure a Fixed Rate.There's Another Way to Deduct Mortgage Insurance.In the End, You're Not Negotiating the Rate; You're Negotiating the Loan Officer's Commission.It's Okay If You Make a Small Down Payment—but It Can Affect Your Monthly Payments.Your Loan Officer Is Supposed to Advise You of Potential Charges, but the Estimate Doesn't Have to Be Accurate.Some Prepayment Penalties Can Be Bought Out.Make Sure Your Rate Quote Covers Your Time Requirements.Ultimately It's the Loan Officer Making the Rate, Not the Lender."Spot" Rate Quotes Are No Good.Knowing and Using the Following Terms Will Improve Your Chances of Not Being Taken Advantage Of.You Can Repair Your Credit; Don't Pay Someone Else to Do It for You.You Still Have to Qualify for a Refinance, Just as You Did for the Purchase.Don't Be Fooled by "Payment-Option" Loans.One AUS May Approve While Another Could Decline.You Can't Add Someone to a Refinance to Help You Qualify.The APR Can Be Useful Only When Comparing Identical Loan Programs.If There Are Any Special Business Relationships Between the Builder and Other Businesses, You Need to Know About Them Before You Go Any Further.Your Construction Loan Lender May Require a Contingency Fund.The Builder's Lender Is Probably a Mortgage Broker.Your Builder Doesn't Care About the Origination Fee.It's Imperative That You Get Rate Quotes on the Same Day at the Same Time.The Most Important Element in Your Loan Approval Is Your Credit Report.You Don't Have to Pay Discount Points or Origination Fees.Mortgage Bond Pricing Isn't Available to the General Public.Will You Pay Back the Lender?Risk ElementsYou Can Refinance into an FHA Loan If You Have Equity Concerns.Lenders Can Make Certain Assumptions When Quoting Rates.Don't Pay Points or Origination Fees When Refinancing.Loan ChoicesInterest RatesMortgage Calculators Found on the Internet Will Always Tell You to Buy.If You Locked in a Rate and Your Broker Can't Tell You Who the Lender Is, He's Lying.You Might Be Steered Away from Government Loans.The Greater Your Loan Amount, the More Leverage You Have.When You Pull Cash out, the Lender Will Ask You What You're Going to Do with the Money—Be Careful with Your Answer.Don't Be Fooled by the Term Potential Neg-Am.Down Payments Will Come Under Strict Scrutiny—and the Less Down Payment You Have, the More Scrutiny You Will Receive.Don't Wait Until Rates Are 2.00 Percent Below Your Current Rate Before You Refinance.The Fed Attempts to Control Inflation and the Cost of Money.How Smooth Your Loan Closing Will Be Is Directly Proportional to How Long Your Loan Officer and Your Loan Processor Have Been Working Together.Low-Down Loans Can Be a Trap.The Slower the Construction Period on Your Project, the More Money You Have to Pay.What If You Don't Pay Back the Lender?Your Credit Score Can Affect How Much Money You Can Borrow.Sometimes Major Closing Cost Errors Are Made by Incompetent Loan Officers.Can You Pay Back the Lender?If Rates Have Gone Down During Construction and They're Much Lower than Your Predetermined Permanent Rate, Ask Your Lender for a Reset.Your Broker May Not Know Until the End Who Will Ultimately Be Your Lender.Predatory Lending Still Exists.Mortgage Brokers Have a More Difficult Time Quoting Accurate Closing Fees than Mortgage Bankers Do.You Don't Have to Refinance Your Construction Loan with the Same Lender.The Mortgage Loan ProcessYour Contract Could Spell Disaster.Rate Caps Protect You When You Have an ARM—Pay Attention to Your Caps, and Make Sure Your ARM Has Them.It's Better to Remove an Extra Person on a Loan Application If That Person Has Bad Credit.Credit Unions Can Sometimes Have the Best Fixed-Rate Mortgages Anywhere.Your Loan Officer Should Never Advise You When to Lock.You Don't Have to Supply Tons of Documentation at Application, Even if Your Loan Officer Asks for It.Giving More Information Means That You Have to Document More.Do Your Research and Choose an ARM Only When Rates Are at Relative Highs.Don't Be Talked Into Any Particular Type of Loan.The Number of Wholesale Lenders Is Dwindling.There Are Several Unacceptable Sources of Down Payment FundsA Modification Can Also Make Sense When Rates Don't Drop.Loan Officers May Try to Increase Their Fees to Offset a Lower Rate Quote.Lenders Don't Always Need a Full Appraisal.Your Margin Is Your Lender's Little Secret.Beware of Lenders Who Say, "I Figured Out a Way That You Don't Have to Pay Mortgage Insurance."The Prime Rate at One Bank Can Be Different from the Prime Rate at Another.Loans by Themselves Aren't Necessarily Predatory, but a Loan Officer Can Make a Predatory Loan.Mortgage Lenders Make No Distinction Between a Chapter 7 and a Chapter 13 Bankruptcy.Hybrids Are a Nice Choice, but They're Still ARMs.Owning Your Own Lot Is Automatic Equity in Your New Home.Mortgage Brokers Must Tell You How Much They're Making on Your Loan.Some People Aren't Built for ARMs.To Optimize Your Credit Score, You Should Have a Balance of About One-Third of Your Credit Limit.Some Lenders Offer "Float-Downs."Mortgage Brokers Can Lock You In at One Wholesale Lender, Then Lock You In at Another If Rates Move Down to Make More Money."Manual" Underwriting Is Rare.If There's a Mistake on Your Credit Report, It's Your Lender Who Can Best Help You Fix It, Not the Bureau.Realtors Have a Stake in Making Sure That You Are Not Screwed.When You Refinance, You're Not Skipping Payments.Buying and Building NewLoan Officers Can Lowball Third-Party Fees to Make Their Loan Offering Look Better.Conventional Lenders Can Make a Loan Even If the Bankruptcy Is Less than Four Years Old.You May Be a First-Time Home Buyer Even Though You've Owned a Home Before.Knowing What's Included in the APR Is Critical When Comparing Loans.GlossaryEstimates for Property Taxes and Insurance Are Often Wrong.A Cosigner Can't Erase Someone Else's Bad Credit.Explore an Equity Loan in Lieu of a Cash-Out Refinance.Your Loan Isn't Approved by a Person or a Loan Committee Anymore.Construction Loans to Build a Custom Home Have a Whole New Set of Concerns.Mortgage Brokers Aren't More Expensive Than Mortgage Bankers.Where Mortgage Loans Really Come FromIf You're Behind on Your Mortgage, Your Lender Has the Best Solutions.Developers Don't Get Paid Until the Very End of a Project.Banks Can Set Their Own Rates.Loan Officers Can Make More Money off of You Through "Market Gains."Sometimes the Best Rate Is Not Your Only Consideration.The Federal Reserve Has Little to Do with Your Mortgage Rate.It's Not Whether the Payment Was Late, It's How Late It Was That Makes the Difference.There Are Ways to Save on Closing Costs When Refinancing That Weren't Available to You When You Bought.There May Be Mistakes on Your Credit Report That You Don't Know About.Bankruptcy Doesn't Automatically Mean That You Can't Get a Mortgage.If You're Applying with Someone Else on a Mortgage Loan, the Lender Will Use the Credit Score of One Person or the Other, but Not Both.A Lender's "Secondary Department" Sets Mortgage Rates for Its Company.Paying Off and Closing Credit Accounts Will Hurt Your Credit Score.Some Fees Are Junk Fees.If You're Declined by an AUS, Your Loan Officer Can "Tweak" Your Application in an Attempt to Get You Approved.Mortgage Insurance Can Cancel Your Loan Approval.There Are Really Only Two Types of Loan: Fixed and Adjustable.Mortgage Lenders Can Adjust Risk Elements 1 and 2, but They Can't Adjust Element 3.There Is No Such Thing as a "No-Closing-Cost" Mortgage Loan.Sometimes Your Rate Is Not Reduced When You Pay Points.If the Property Doesn't Conform to Specific Appraisal Guidelines, You Won't Be Able to Get a Loan.Your Lender May Try to Confuse You by Comparing ARM Loans with Different Indexes.Some Boxes Are Simply for Identification and Won't Be Used to Determine Eligibility.The Higher Rates Go, the More Attractive Mortgage Insurance Becomes.Lenders Now Need a Down Payment.Higher Loan-to-Value Cash-Outs Carry Higher Rates.If Your Broker Is Playing the Market, You Could Both Lose.Some Things on Your Loan Application Are Completely Unnecessary.Rate Quotes Are Worthless Unless Your Rate Is Locked In."Guaranteed" Closing Costs Don't Mean That the Whole Estimate Is Guaranteed.Prepayment Penalties Aren't Always a Bad Thing.Mortgage Rates Advertised on the Internet Are Also Inaccurate.Your Loan Officer Probably Can't Explain the APR Number.Brokers, Banks, and Mortgage Bankers Must All Be Licensed Nationally, and They Have to Tell You This.Your Best Choice May Not Be Either a Broker or a Bank.Mortgage Brokers May Be Able to Find, on Any Given Day, a Slightly Better Rate Quote.VA, FHA, and USDA Loans Don't Require Scores, but Lenders Do.Construction Loans Are Easy to Compare.Many Mortgage Bankers Allow Their Loan Officers to Broker Loans.It's the Approval That Sellers Want to See.You Might Be Able to Reduce Your Note Rate Without Refinancing at All.Stay Away from Negative Amortization.Using a Realtor Will Save You Money.The Mortgage Rates You See in the Newspaper Are Never Reliable.Separate the Cost of the Upgrades from the Cost of the House.Interest-Only Loans Carry Additional Risk.There Are Other Choices Besides a 15-Year and a 30-Year Fixed Rate.Cash-Out Refinancing Can Cost You More than You Think.Loan Officers Can Take Classes to "Sell" a Refinance.Fannie Mae, Freddie Mac, the VA, and the FHA Don't Make Loans.If You're in a Chapter 13 Bankruptcy, You Can Still Get a Mortgage Through the FHA.Don't Pay Any Closing Costs When Refinancing.Commitment Fees Are Not Uncommon with Construction Loans.If You Have an FHA or VA Loan and Want to Refinance and Your Credit Has Been Damaged, You're in Luck: You Can "Streamline."Underwriters Don't Look at Your Various Credit Accounts and See How Many Late Payments You Have or Haven't Made.Beware of "Special" Deals.Although Construction Loans Can Be Found at Many Lenders, It Pays to Work with a Construction Loan Officer.An Experienced Loan Officer Will Know When to Tweak and When Not To.There Might Be One More Zero-Down Loan for You: US DA.A VA Home Loan Guarantee Doesn't Mean That You're Guaranteed an Approval.Wholesale Lenders Can Limit What Brokers Charge You.You Can Guarantee Your Interest Rate on Both the Construction Loan and the Permanent Mortgage, While Reducing Closing Costs, with a One-Time Close Loan.You Can Call Companies Directly to See If Their Fees Are Accurately Quoted on an Estimate.Anything That Can Be Appraised Can Be Used as Down Payment Funds.Recurring Closing Costs Are Nonnegotiable; Nonrecurring Closing Costs Can Be Negotiable.Closing CostsNot Only Can Your Bank Sell Your Mortgage, but You Gave It Permission to Do So.After You've Locked, Your Loan Officer Won't Tell You When Rates Have Dropped—You Have to Watch the Market Yourself.RefinancingA Prequalification Letter Is Essentially Worthless in Today's Real Estate Market.Prepayment Penalties Can Be "Hard" or "Soft."Mortgage Brokers Must Disclose Any Yield Spread Premium Accurately.You'll Need More Equity to Refinance a Conventional Loan.Mortgage Rates Aren't Tied to the 10-Year Treasury Note or the 30-Year Treasury Bond.While There May Be Three Different Credit Scores, the Lender Always Uses the Middle One.If Your Bank Sells Your Loan, You May Lose Some Privileges.The Best Time to Close a Refinance Is as Close to the First of the Month as Possible.Lenders Can't Predict the Future, and Neither Can You.Alternative Sources of Down Payment Money Are Better than Low-Down Loans.Wholesale Lenders Can Pay Brokers to Send Them Loans.Your Mortgage Broker May Now Have Fewer Options Than a Mortgage Banker.Credit
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