In a recent study done by the Consumer Federation of America revealed that women are more likely to receive sub-prime loans and high cost loans with higher interest rates, than men. More than 1 in 10 women receive these high cost sub-prime mortgages.
Women of color are the most likely to receive sub-prime loans and white men are the least likely to receive sub-prime loans at every income level and the gap grows with income.
So, how do you avoid being a statistic or how do you know you are being taken advantage of.
Here are some important questions to ask and what you need from a Loan agent:
1. Ask what your credit score/Get a copy of your report if you can.
2. Ask about the Loan Program they are offering. Have them give you the pro’s and con’s of the Loan.
3. Ask if you have a Pre-Payment Penalty on your Loan.
4. Ask for a “Good Faith Estimate” and ask them to explain the charges.
5. Ask to be informed if things change.
There is a difference between getting pre-approved and pre-qualified for a mortgage loan. Getting pre-approved means they ran your credit and based on your credit score they will find a lender and basically say “you’ve be pre-approved” Now, being pre-qualified, they have submitted your loan to a lender and the Loan Agent will know what they are charging and receiving from that lender. Once you have been pre-qualified, you WILL want that “Good Faith Estimate”
This will tell you if you have a pre-payment penalty, how much they are making from you and the lender, and also will tell you where all the fees YOU are paying go to.
Now, if you have a Real Estate Agent and you are getting closing costs, this should go to paying transfer fees, title fees, and/or bringing down your interest rate, not lining the pocket of a Loan Agent for them to make even more money!
I have had many many men and women contact me informing me that their Loan person starting telling them they had to pay more fees to the Lender or Escrow is asking for more money and it’s going to cost more points to get a different interest rate…this is a sign you should re-think that Loan Person.
If you Loan Agent has a problem explaining his/her fees this should be a “RED FLAG” Whether you have signed your loan pages, you have 3 days to think about it, and if it does not feel right call the Loan Agent and the Lender and have your loan Rescinded!
The Refinance process should take no longer than 10-14 days. On a purchase you can take up to 30 days, but if you have a diligent Loan and Real Estate Agent, the home buying process once you have chosen your desired property should take no longer than 15-20 days! If your Home Loan does not feel right rescind your loan and your Real Estate Agent can explain to the seller the complication and they will wait for you!
One thing you should always remember “DON’T BE AFRAID TO ASK QUESTIONS.” It is the job of the Loan Agent or Realtor to make your life easier! You want your home buying experience to be stress free and the right Loan and Home for you!
If you have any questions or would like to start the process of finding your dream home call me! I am always here to answer questions or be of service!
I look forward to working with you!
Dynasty Financial Tel: 916-746-8790 or visit us on the web at www.dynastyfinancialonline.com
0 comments:
Post a Comment