Everywhere you look these days, you see negative impacts on reality.
real-estate market.
Rates have gone up. Home values are low. And to top it off there
lenders predicting about consumers. So who do you turn to? who can you
confidence?
It is more important than ever to become an informed consumer if
You are looking to buy or refinance your home. there are some things
that you as a consumer should consider before committing to any loan
agreement.
First be aware of your rights. Learn the basics of home lending so you can
you will know when they are charging you too much for a loan or for things
you don’t need. There are a variety of websites that will give you
information about the laws regarding mortgage loans. Yes, the loan is
regulated by the government. The Real Estate Settlement Procedures Act
(RESPA) is a HUD consumer protection statute designed to allow buyers
to become informed and aware of closing costs and settlement procedures.
It requires consumers to receive disclosures at various points in the transaction.
and prohibits bribery that increases the cost of settlement services.
Next, be aware of your expectations and limitations. how much can you
solve? Can you afford an appraisal or closing costs?
By the way, don’t believe the “no closing cost loan” ads. There is not
something like a free lunch. You will pay fees in advance, or pay the
Bank in the back with higher interest rates. The longer you are in the
loan, the more money you will have to pay.
Make sure you are comfortable with your loan payment, because you will be
paying that amount for many years. what do you expect from your
What will be the financial situation in the coming years? Will he retire or
Will you be earning more money? Will you support your child’s college?
education? Consider your concerns and future goals.
Also, it is imperative that you find out who you are doing business with.
Can you trust them? Do they have a license? How big is your office? Are
Are you just another borrower among thousands, or are you a customer who is
recognized as a person with individual needs and concerns? Why are
them in this financing industry? What about ethics? After you have found a
couple whose reputation seems to be outstanding, visit their websites
because in addition to wanting a trustworthy company, you also want one
affordable company. You should not feel pressured or uncomfortable when
talk to a lender. If he does, it may be that his instincts tell him to
something is not right. If so, just walk away. move on to next
lender. They should be willing to work with you to help you find the best loan.
for you and your situation.
Keep in mind that predatory lenders typically target what is known as
non-prime mortgage market. These are people with not-so-perfect credit.
One predatory lending practice is loan reversal, in which the borrower is
forced to refinance a loan, sometimes multiple times. The purpose of this is
that generates new commissions for the lender. other common
practice is bait and switch. The lender will tell you the terms and the rate,
If you agree, you sign the documents. But when you get to the
closing table, finds that the rate and terms have changed, and is left
believe it is too late to back out. It is not! Fortunately, the
The Federal Truth in Lending Law is a safeguard for those who refinance
a loan on your primary residence. This Law guarantees borrowers
the “right of termination,” which means they can cancel the loan within 3 days of closing.
So be careful! There are credit institutions that do a great deal
a lot of money by charging additional fees to borrowers who cannot
pay. This will deprive certain borrowers of the American dream
of home ownership or, worse yet, prepare them for eventual foreclosure.
But rest assured, there are also plenty of ethical lenders available if you
look for them. Make sure you feel comfortable and informed about
the terms of the loan. Ask for options and comparisons so that you
you can choose which loan you think best suits your needs.
Ask as many questions as you feel are necessary to get a sense of
security. A good mortgage specialist will take the time to explain things in detail.
They will build confidence by allowing you to do it at your own pace and only
after addressing all your concerns.
Good luck!