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A short course of lectures

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