Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You

Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You

by David Reed
     
 

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Anyone who wants to get the best deal when financing a home needs to be armed with a little insider advice. The second edition of Mortgage Confidential lets readers in on what lenders really look for before they approve a loan, options they won’t often divulge, which costs they have control over, and little-known sources

Overview

Anyone who wants to get the best deal when financing a home needs to be armed with a little insider advice. The second edition of Mortgage Confidential lets readers in on what lenders really look for before they approve a loan, options they won’t often divulge, which costs they have control over, and little-known sources of down payment money. Including up-to-the-minute information on new licensing and disclosure rules and the latest eligibility requirements, the book shows readers how to:

Complete the loan application to maximize their chances of approval • Steer clear of credit repair scams • Pay zero closing costs • Qualify for the lowest rates • Avoid origination charges • Determine whether paying “points” can save them money • Identify a “rip-off” loan program • Refinance—even if their equity has dropped • And more!

Whether looking into securing a mortgage for the first time or seeking to refinance, Mortgage Confidential gives readers the confidence and information necessary to get through this complicated process and find the ideal loan for their needs.

Editorial Reviews

From the Publisher
“This book provides the roadmap to steering clear of certain traps of the mortgage game.” —Sunday Star-Ledger (Newark, NJ)

“[Reed] gets better with each book he writes. You can read this book and laugh out loud while actually learning.” —The Plain Dealer (Cleveland, OH)

“The only people who should read Mortgage Confidential by mortgage broker David Reed are home buyers who want to avoid unnecessary mortgage fees, homeowners who want to refinance and save money, and real estate agents looking out for the best interests of their buyers…. This is one of the very few real estate books that cannot be recommended too highly. It is easy to understand, but, more importantly, it includes mortgage secrets not revealed elsewhere. On my scale of one to 10, this outstanding book rates an off-the-chart 12.” —Robert Bruss, nationally syndicated real estate columnist

"Mortgage Confidential is like reading CliffNotes for Shakespeare's Hamlet....Reed breaks fown the lingo of the industry and provides good unbiased information that will help you ask the right questions and avoid getting snookered. If you don't want to be like a third of homeowners who don't know what type of loan they have, get this book." —Michelle Singletary, Washington Post, nationally syndicated columnist

“This consumer-oriented book is easy to understand, but, more important, it includes mortgage secrets not revealed elsewhere.” —Los Angeles Times

Product Details

ISBN-13:
9780814415436
Publisher:
AMACOM Books
Publication date:
08/18/2010
Edition description:
Second Edition
Pages:
240
Product dimensions:
5.90(w) x 8.90(h) x 0.70(d)

Read an Excerpt

Introduction

The mortgage process is extremely confusing. Besides the fact that there

are lots of terms bandied about that are not used anywhere other than in

home loans, there are so darned many people involved in the transaction.

And these people have their own vocabulary. If you don’t know what

they’re talking about, you are more susceptible to falling for things like:

Misleading marketing

Incomparable rate quotes

Bait-and-switch tactics

This is not to say that all lenders are crooks. Nor are all loan officers

out to get you. Far from it. It’s just that because the mortgage process is

so bewildering and can happen so quickly, it’s hard to catch up, much

less understand the entire process. Loans can be very complicated—so

complicated, in fact, that even the loan officers who are explaining them

to you don’t always fully understand them.

The average loan officer might close 80 loans per year. That’s a lot.

But you might buy only two or three houses in your entire lifetime. That

means that your loan officer does on a routine basis what you do on very,

very rare occasions.

That’s no different from other occupations. Anyone can have a

unique specialty or trade. Certainly doctors and lawyers have their own

protocols, terminology, and business practices. And so do mechanics.

And artists. And plumbers. In business life, everyone has something

that’s unique to her industry.

The difference is that while a mistake with a gardener might cost you

fifty bucks for a new rosebush, a mistake on an interest rate could cost

you thousands of dollars. Or qualifying for the wrong mortgage loan could

mean that you’re in over your head, which could cost you your home. You

can get a new rosebush. You can’t erase a foreclosure, and it’s difficult to

erase a bad mistake when it comes to a mortgage loan. That’s why you

need to know insider information—to protect yourself from costly mistakes

and unethical loan officers.

Go to any bookstore and peruse the books on mortgages. How many

of them were written by loan officers? Five? Two? One? Most home loan

books are written by columnists or authors who have never filled out a

home loan application other than their own.

They haven’t compared rate sheets from one lender to the next. Or

sat down and objectively compared one loan program with another at the

behest of a new loan applicant.

I have. Not only do I write regular columns about home loans, but I

have written several books specifically about mortgages. Mortgage Confidential

now unveils information that consumers do not commonly know

so that they can decide what’s right for them. Not only that, but Mortgage

Confidential also pulls back the curtain on various loan officer practices

that only the trained eye can identify.

I’ve seen almost every situation imaginable. I’ve seen people attempt

to commit loan fraud—consumers and loan officers alike. I’ve watched

the interest-rate markets shake, rattle, and roll through various rate hikes

and rate cuts.

Every so often I’ll read a mortgage column in a popular newspaper or

go online and look at what other people are writing about home loans.

Now and then I’ll read something and yell out loud, ‘‘That’s wrong! You

don’t know what you’re talking about!’’

The thing about reading something that’s been printed, whether it be

in a newspaper column, in a magazine, or in a book, is that the reader

automatically assumes that what has been printed is correct. That’s not

the case. And that’s why those who aren’t in the mortgage industry or

those who just comment about it leave themselves open to error.

There are a lot of assumptions about mortgage financing that have

reached urban myth status.

Don’t refinance your loan unless the rate is 2 percent below your

current one. Wrong.

You need perfect credit to get a mortgage. Wrong.

You can’t get a loan until your bankruptcy is seven years old. Wrong.

You can’t get a loan until your bankruptcy is two years old. Wrong

again.

You need 20 percent down to get a mortgage. Wrong.

The Fed controls your interest rate. Wrong.

And on, and on, and on.

This book will debunk all these myths and many more. Arm yourself

with information, and you won’t get taken. Read on.

What People are saying about this

Robert J. Bruss
"The only people who should read Mortgage Confidential by mortgage broker David Reed are home buyers who want to avoid unnecessary mortgage fees, homeowners who want to refinance and save money, and real estate agents looking out for the best interests of their buyers. All others should avoid reading this superb new book because you will be shocked by what goes on in the home-loan industry. The author must need 24 because he reveals the dirty tricks some mortgage lenders use to secretly increase their profits at the expense of borrowers . . . . This is one of the very few real estate books that cannot be recommended too highly. It is easy to understand, but, more importantly, it includes mortgage secrets not revealed elsewhere. On my scale of one to 10, this outstanding book rates an off-the-chart 12."--(Robert J. Bruss, Syndicated Real Estate Columnist)

Meet the Author

DAVID REED (Austin, TX) is the author of several books, including Mortgages 101 (978-0-8144-0166-8). As a senior loan officer, he has closed more than 2,000 mortgage loans. He is a columnist for Realty Times and a member of the Mortgage Speakers Bureau.

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