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A short course of lectures

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