Helpful Hints about Financing
Avoid door-to-door, direct mail and telephone solicitations. Take the active aggressive approach and, after counseling, initiate your own search for a mortgage.
Shop around by obtaining referrals for loan officers and mortgage brokers from family, friends, co-workers and others you trust, who have also recently completed a satisfactory mortgage deal.
Make sure the loan officer or broker is properly licensed, certified or otherwise sanctioned to originate mortgage loans. Ask potential brokers and loan officers about their participation in continuing education courses and certifications that keeps them up to date on the latest loan policies and applicable laws.
Never allow yourself to be pressured into a loan. Reputable mortgage originators strive to make consumers aware of and comfortable with all of their loan options.
Lenders will loan you an amount they are willing to “risk”. That’s not necessarily what you can truly afford. It’s up to you to take stock of your capability to repay a mortgage, including how much you can comfortably afford each month.
Request an accounting of all estimated and true fees associated with your loan. Question any fees you do not understand with the intent of getting an answer that satisfies you.
Never sign a blank mortgage form and always retain a copy of everything you do sign.
Never sign a contract without knowing and understanding all the terms of the loan.
Originators should be willing to explain all loan terms and conditions and each cost. If they aren’t, walk away, even on closing day!
Be aware of any “right of rescission” you may have for some loans. So called “cooling of periods” give you several days to back out of the loan, after you’ve signed it, if you later discover discrepancies or determine you can’t afford the loan. Be clear which loans in your jurisdiction carry the right of rescission before you sign.
Be wary if you are asked to leave signature lines or any other important line item of any form blank. Did the lender or broker alter any information you entered on you loan application?
Are all the required disclosures in you file? If you are missing the Good Faith Estimate, Special Information Booklet, Truth in Lending or HUD-1 Settlement Statement, contact your lender to get those forms included in your file.
After refinancing your loan several times, does the monthly payment keep increasing or the total amount keep rising?
Did you incur any unexpected costs at settlement that were not explained to you prior to settlement?
After settlement, were you surprised to find the monthly payments on your mortgage loan were higher than you anticipated based on the initial disclosures?
If you think you’ve been victimized call the MBAA’s web site: www.stopmortgagefraud.com
Or call: 1-800-348-3931
For additional information and articles visit: www.RealtyTimes.com
Type in Predatory Lending in their search box.