December 28th 2007

Not only Mortgage Brokers are in trouble;

so are Banks

 

Looking at the news from this morning I found out that several Mortgage Bankers where issued to pay civil monetary penalties and al three have worked for Banks and not the wholesales.

 

 

Then banks who where affected per the Mortgage Daily News where Lasalle Bank MidWest N.A. in Troy, Mich.; American National Bank in Omaha, Neb.; The First National Bank of Bellevue in Bellevue, Ohio; First Tennessee Bank N.A. in Memphis and Associated Bank N.A. in Green Bay, Wis.

 

 

Here are some quick tips to make sure that you are getting the right mortgage for you:

 

 

·      Make sure you are comfortable with the mortgage payment and make certain that you have included in the calculation the insurance and property taxes.

·      Disclose all of your defaults and former payment miss haps.

·      Ask the mortgage person what paperwork he/she will need to process your application smoothly. Do not let them tell you this can done without some form or proof of income.

·      Know already your credit score when you ask for a mortgage. Make certain you check all three credit reporting agencies.

·      Be certain that you do understand all of the information given to you and that you READ your MORTGAGE AGREEMENT prior to signing the paperwork at closing.

·      Asked for a copy of the total agreement before hand, you can just have the lender mark it as a copy, and again READ IT IN FULL. I recommend to my clients to take a highlighter and highlight every section they do not understand.

·      Take this agreement with you to the closing table and make certain that when you sign the paperwork it is the same you have seen before.

·      When you see discrepancies, walk away from the table until you understand what has been changed, you DO NOT have to sign the paperwork. I have heard of cases where a fixed rate mortgage was changed to an ARM with Balloon payment right at the closing table, just because the buyer did not full understand what they have been signing.

 

 

I am not an attorney and this is not deemed to be legal advice. For ANY legal advice please consult your local attorney. This is just information put together out of experience.