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A short course of lectures

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