5 Tips For Getting a Good Loan
The
rules of mortgage and credit are changing faster than a
politician can talk. Unless you want to be the next victim
of a bad loan, you need to keep up with the news. Here are
5 things happening behind closed doors that I'll bet no one
has told you about.
1)
The Mortgage Insurance Companies are axing loans that
lenders have approved.
It does you no good to get an approval with a bank or
mortgage company if the Mortgage Insurance Company refuses
to insure the loan. Just today, a home buyer with a 790
credit score, a high income, and 10 percent down got a
nasty surprise when the Title report came in. Because the
seller purchased the loan at auction four months ago and
was flipping it for a big profit, the MI Company said, "No
deal!"
The bank was happy with the loan, but without the backing
of a MI company, it couldn't close as a conventional loan.
In order to prevent them from losing their dream home, I
had to switch to an FHA loan.
The
lesson: Work with a
savvy loan officer who can save your financing if you get
thrown a curve ball in the middle of the deal. It does you
no good to save one eighth on your interest rate if the
loan officer can't close your loan. Don't put "bargain
pricing" over experience and expertise.
2)
Title companies and escrow companies are piling on the junk
fees.
Looks like title and escrow companies have jumped on the
junk fee bandwagon! You must not rely on the seller's agent
to pick the title and escrow company. They routinely choose
companies that charge more -- and provide slower service.
(I guess those season tickets and gift baskets during the
holidays really pay off.) I detest email fees, doc prep
fees, courier fees, archive fees, ancillary fees, and all
the other nonsense that pads their profit with no value to
you. See Homebuyers
Beware for the latest
in fees and over-charges and how to save more of your
hard-earned money for yourself.
3) Watch out for so-called "Special
Deals."
There is no such thing as a "loan nobody else has," or a
"loan they don't want you to know about." All loans are
designed to make money for the lender. If it sounds like a
one-of-a-kind, deal of the century, then there's something
amiss. Dig deeper and find out what the catch is.
Sometimes that "special" turns out to be a loan officer
manufacturing phony income and bank statements for your
file. No wonder nobody else can get you approved! If you
see fraudulent numbers on your application, you must not
sign it. Ask questions. Go home and think about it.
4) Phony interest rates are all over the Internet.
Don't fall prey to online mortgage ads. Many of them are
nothing more than a Lead Generation Service that sells your
private information over and over again to multiple
lenders. Not only that, but they quote you one rate and
then turn around and give you something different.
"Can they do that?"
Yes, they can -- and they do! No one can be held to an
interest rate quote, because rates change all throughout
the day. The quote you got this morning doesn't necessarily
hold in the afternoon. So skip the Internet ads and work
with an honest, ethical loan officer.
5)
If you don't have your own buyer's agent, you will pay
more.
Don't make the mistake of thinking you can get a cheaper
price by calling the listing agent on the sign. That is
wrong! The seller's agent is legally
required to get the
highest possible price and all the best terms for the
seller. You need your own agent representation, an
experienced professional who is looking out for your best
interests. A buyer's agent is free to you, and he or she
will save you money, time, and stress.
"But won't the listing agent give me a cheaper price if he
or she is getting 'both sides of the deal'?"
I took a national poll, and the answer from agents all over
the United States was a resounding, "NO."
So how can you save money and get the best price? I have
more hot tips than I can post on a Web site, so I've
revealed lots of new, fresh insider information in my brand
new book, Homebuyers
Beware: Who's Ripping You Off Now? (Available at
Barnes & Noble, Amazon, and fine booksellers
everywhere.)
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