Got a question asking if zero cost loans really exist. They do. I’ve done several dozen myself, for clients who listened to me about the nature of the market. Let me define what a zero cost loan is. It is a loan with a higher rate deliberately chosen so as to get a high enough …
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What Pre-Approval For A Mortgage Loan Should Mean
People are understandably hazy on the difference between pre-qualification and pre-approval. Pre-qualification is a non-rigorous process whereby somebody says that based upon the information as presented to them, it appears you’ll qualify for the loan. Pre-approval should be more rigorous. For A paper, it should mean that you’ve fed the final loan information, including qualifying …
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What I Look For In a Mutual Fund Family
Reading the papers, I see all kinds of garbage about mutual funds. Probably the biggest single piece of garbage is that only the so-called “no load” funds are any good. They focus only on the cost of the “loaded” fund, as if there is no benefit to be had from the fact that the “load” …
What Fees Can You Recover If Your Loan Is Denied?
“What mortgage fees can i recover after loan denial” was a search I got. The answer is basically, “None.” Indeed, one of your search criteria should be mortgage providers that don’t charge anything up front, except maybe a credit check fee. Those are about $20, and you should be prepared to spend that $20 several …
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“We’ll Beat Any Quote” in Mortgage Loans
Just like “we’ll beat any deal!” in any other competitive sales endeavor, this is a game. Actually, it’s even more of a game for loans than it is anywhere else, used cars included. What they are hoping is that you’ll go there last, and tell them what the best thing you’ve been quoted, and then …
Today’s Turkey
Over at my other site, I’ve got a feature called “Hot Bargain Properties” Being as the market is swinging more strongly to the buyers every day, it’s what you might call a “target rich environment”. On the other hand, there are still folks in denial, and just plain “What were you thinking” moments. Since a …
When The Appraisal Is Below The Purchase Price for Real Estate
<blockquote>what happens when house doesn’t appraise?<BR /></blockquote> I presume this question meant “for the necessary value according to the lender’s guidelines”. Lenders base their evaluation of a property upon the standard accountant’s “Lower of Cost or Market.” This is intentionally a conservative system, because the lender is betting (usually) hundreds of thousands of dollars upon …
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What is Loan Amortization?
I keep getting hits for this, so people must want it explained. Loan Amortization is nothing more than the process of paying the loan off by regular payments over time. Leave it to the experts to come up with a fancy word for an everyday process, eh? A loan which is fully amortized (or fully …
Incorrect Legal Descriptions on a Trust Deed
“Trust Deed Incorrect Legal Description” There are all kinds of legal descriptions. Lot, Block and Map, or just Lot and Map, are probably the most common. Sectional portions (Portion A of Section B of Township C, Range D) are probably next most common, followed by “metes and bounds”, and often the two are mixed. Finally, …
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I’m Sorry, Did You Think Your Good Faith Estimate (Or Mortgage Loan Disclosure Statement) Meant Anything?
Somebody asked, “What are my legal options when there’s a change on a good faith estimate.” Short answer: Sign the documents or don’t. Same thing with a Mortgage Loan Disclosure Statement here in California. Neither one means anything binding; that’s why they call the one an estimate. Nonetheless, because there is a perception that they …