7 Things Your Mortgage Company Hopes You Won’t Find Out
So you looked for months and months and one day you discovered your dream home. Next step, how do I pay for this wonderful home?
Before trotting over to the local bank or mortgage company, there could be some things you need to know. There are some things mortgage companies wonât tell you. Knowing them will make help you avoid potential pitfalls that could delay or prevent you securing the loan necessary to secure you dream home.
1. Youâre not dealing with an independent mortgage broker. Usually, you run to a mortgage broker when you want to obtain a loan for a home. Thatâs fine, as it means you donât have to sweat even the small stuff. However, what you donât know is that the mortgage company is actually paying these brokers for referrals. Thus, you are not sure if the product offered to you is something that you need or an expensive one that allows both the mortgage companies and these brokers to earn more money.
2. Youâre not getting the lowest possible interest rate. You really canât expect lending companies to offer you the possible lowest rate in the market, can you? After all, how can they earn money out of every transaction? Expect the interest rate to be slightly higher, perhaps 1 or 2 percent than the actual percentage. Now, itâs up to you to decide if the extra charges are something you are willing to accept or not.
3. You are obtaining the right loan. Surely, youâll meet loan companies telling you that you deserve something better. Thus, they end up offering you a package that is expensive. You may hardly notice it, though, since itâs something that is still within your budget.
4. You will be paying a lot more in your foreclosures. A lot of home owners believe that the costs will end at the back mortgage payments, but they are wrong. There are still a lot of costs to think about including attorneyâs fess and commissions of the sheriff. These payments, which can go as high as $8,000, need to be paid before you can get a new mortgage again.
5. Thereâs no such thing as pre-qualification. Or we can say this as your prequalified status doesnât have any bearing at all to your qualification. You may have an excellent credit score, a faithful payee, and working class; but unless the information in your loan application have been verified and confirmed, what you say or write will mean nothing to the mortgage company.
6. You can cancel your mortgage insurance. Mortgage insurance doesnât come cheap, but your mortgage lender will tell you that you need it since you can hardly make the 20 percent down payment. You can only cancel it once you do. The Homeowners Protection Act, however, will tell you that once your homeâs equity reaches 22 percent, the insurance should be cancelled automaticallyâbut home owners will always have a choice to do it even before it goes to that percentage.
7. They canât help you if you canât help yourself. They may promise the moon and the stars, but in reality, these companies will not be able toprovide you of the help that you need if you donât give them sufficient and accurate information. And with so many applications to worry about, spending more time on yours is definitely not their cup of tea.
Michael McLaughlin
http://www.articlesbase.com/real-estate-articles/7-things-your-mortgage-company-hopes-you-wont-find-out-755988.html
Comments
Is the only thing keeping our country from falling apart right now government bailouts?
We are currently seeing bank failures, insurance company failures, stock failures, mortgage failures and an increase in unemployment. Unfortunately, the U.S. is having to borrow the money from other countries to finance the bailouts as the U.S. is seriously in debt. This, in turn, will seriously impact the value of our dollar which is already worth much less than the euro.
My personal belief is that we are not going to be able to dig our way out of this and we will plunge into a full blown depression within the next 12 months. Because we are the international consumers of the world this will crash everyone’s market as we won’t be able to continue to spend on a consumer level.
Let’s hope I’m wrong.
your right, sorry to say
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Why should we allow wall street to stick their bad debts on main street? They took the profits and the losses are theirs as well.
Yes it would be bad without the bailout, but it would be much worse for much longer with them.
http://www.youtube.com/watch?v=WbSRJRxV_WU
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The money we are borrowing for this is coming from other countries. Lets take the money and then go bankrupt and default on the loan. People in this country do it all the time. Its called filing bankruptcy. Its damn near an institution here. Then we can start over from scratch. Hey….other countries have done the very same thing to us over and over. You know what they say….pay back is a bitch.
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Our country IS falling apart……
That ‘s why they (government) bailing everyone out…….
Government caused this problem (bad regulations, wrong deregulation, est…….)
So now they think they can fix it…..
It’s like putting wolf in charge of the hen house…..
Undecided-Independent
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They are just stealing your future tax payments. That is what National debt means. They borrow from private banks on what they estimate YOU are willing to pay!
Most people think it has nothing to do with them…hahahaha
They just borrowed $7000 per taxpayer + interest. (in one day and they are not done!) We already owed over $30,000 each.
The dollar is not worth anything …it is an IOU based on our ability to pay TAXES!
Screw you kids that don’t vote. I am thinking I will just take my crappy retirement and go back to Alaska …at least there is free seafood…Try to pay all of this crap on a $50,000 dollar wages with kids and a college loan payment…cannot do it.
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You have Bush to thank for the present predicament we are in. Seven years of corrupted governing and 2 wars with no end in sight would bankrupt any healthy nation’s economy. Actually America is living on borrowed money from China and I think it prudent for Americans to refrain from antagonizing them as they virtually own our butts.
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