If you are looking for a new mortgage there are a few things you ought to know before deciding on a lender. Mistakes made when applying for a mortgage can be expensive in terms of higher interests and fees.
Rule number one is never misrepresent your income and credit to a poyential lender to avoid losing the loan when the lender pulls your credit.
Bad credit? Watch out when lenders take advantage of your bad credit with extravagant fees, conditions, and interest rates. Do some footwork and look for mortgage lenders genuinely concerned with helping people.
Does your mortgage broker appear like they are using pressure to pitch you in? Stop right there, and look elsewhere. Also, remember there’s nothing like a free lunch.
Do research and more research. Every city in the US has a number of reputable lenders, who can be researched online. San Diego has always a ‘hot prospect’ for real estate, and if you’re looking for San Diego mortgages, there are excellent resources available online. Research lenders, brokers, and their mortgage deals. Compare conditions, fees and interest rates. Go online and educate yourself.
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Hi bro
I got a post about this topic too, check it out at http://surayblog.blogspot.com/2007/05/movement-of-mortgage-market.html
Whoa whoa whoooaa here cowboy, you’ve got your facts a little backwards. And be careful, California has specific State Laws regarding the information you can post publicly about real estate.
Let’s correct some facts…
Stating income will not ever somehow show up on anyone’s credit report – ever. You income is never made available to the credit agencies. This is not how that works. I have been a Wholesale Mortgage Officer for 17 years and looked at a lot of credit and applications in that time, so I am here to tell ya…
How the lender discovers discrepancies is if you payment default on the first through the six mortgage payment. Yes, some people never bother to make their first mortgage payment. When the loan goes into default within the first 6 months the lender guesses something is very wrong. During signing, stated borrowers always sign a 4506 or an 8821 form. Unbeknownst to many these forms give the lender the right to pull a copy of your taxes from the IRS for a limited amount of time. They pull your taxes, compare it to the stated income on the loan application signed in escrow, and THIS is how someone gets nailed for padding income.
Stated loans were intended for people receiving room rent, bonuses at the end of the year, income from cash (like someone who sells items at a flea market every weekend), or a self-employed borrower who writes off a great deal of his business. The income was ALWAYS suppose to be there, just not easy to verify.
The sub prime market has all but dried up, so there are few if any unscrupulous loan officers left trying to charge a lot for sub prime. There was always a cap on fees anyways which fall under the Section32 law. All borrowers should shop APR’s instead of interest rates anyways, because the APR will tell the true cost of the loan. This is why loan officers don’t like to generate a Truth-in-Lending statement along with a Good Faith Estimate.
And the pressure thing – well you are going to see that a lot of pressure from loan agents because many loan officers and real estate agents are starving to death. 95% of them would never push you into a loan you will be unhappy with because they are looking for referral business. One loan a year does not put food on the table…
And that is all my real estate advice for this day.
Catherine, the redhead