Mortgage Myths 77 Secrets That Will Save You Thousands on Home Financing

by Roberts, Ralph R.; Cummings, Chip

• ISBN13: 9780470195871
• ISBN10: 0470195878
• Edition: 1st
• Format: Paperback
• Copyright: 2008-01-02
• Publisher: Wiley

Summary

The mortgage game has changed dramatically, and you need to know the rules! Based on years of firsthand experience as borrowers, mortgage and real estate brokers, instructors, and industry insiders, Ralph Roberts and Chip Cummings team up to wipe out all the myths about mortgages and deliver the information you need to purchase and secure profitable long-term investments.

Author Biography

Ralph R. Roberts, ambassador of enthusiasm, has been dubbed by Time magazine "the bestselling REALTOR® in America." He is also an award-winning and internationally recognized speaker, real estate team coach, and business consultant, as well as the coauthor of Flipping Houses For Dummies, Foreclosure Investing For Dummies, and Advanced Selling For Dummies.

Chip Cummings, CMC, is a twenty-three-year real estate finance veteran and has been an originator, broker, banker, and president of both large and small mortgage companies. He is an international speaker and business consultant, as well as author of ABC's of FHA Lending and Stop Selling and Start Listening! He has written dozens of articles for magazines and has been featured on various radio and TV programs.

Table of Contents

Foreword	p. xiii
Acknowledgments	p. xv
About the Authors	p. xvii
Introduction	p. xix
Where Do I Start?	p. 1
Renting Is Better than Buying	p. 2
I Can't Qualify for a Loan	p. 7
Only U.S. Citizens Can Qualify for a Mortgage	p. 11
I Should Look at Some Houses First	p. 12
I Need a Down Payment - But I Don't Have the Funds	p. 16
I Should Make the Biggest Down Payment I Can	p. 18
All Mortgage Companies and Loan Officers Are Licensed and Regulated	p. 21
Big Lenders and Major Banks Are Always Better	p. 24
My Best Bet Is to Use a Friend (or Someone Local)	p. 26
I'll Find a Better Deal on the Internet	p. 29
I Can Get a Higher Return by Investing in Stocks	p. 33
Playing the Mortgage Game	p. 37
My Main Goal Is to Snag the Lowest Interest Rate	p. 37
The Federal Reserve Controls Interest Rates	p. 42
Stay with Fixed Rates - ARMs Are Just Too Risky	p. 43
A Shorter Term Always Beats a 30- or 40-Year Term	p. 47
My Credit History Needs to be Perfect	p. 50
My Credit Score Determines My Loan's Approval	p. 55
Be Conservative - Don't Stretch Yourself	p. 61
I'm Divorced or Declared Bankruptcy, So I'll Never Qualify	p. 63
Special Financing Programs Aren't Available to Me	p. 66
I Should Avoid Mortgage Insurance	p. 68
The Good Faith Estimate Guarantees My Closing Costs	p. 71
I Have to Use the REALTOR/Builder's Loan Officer	p. 73
Selecting the Right Home	p. 77
I'll Save Big Money Buying FSBO	p. 77
I Have to Shop Within a Certain Price Range	p. 80
Everything Is Included in the Sales Price	p. 82
The Appraiser Will Specify the Value and Any Required Repairs	p. 83
The Real Estate Agent Will Protect Us	p. 86
Condos Are Bad Investments and Hard to Finance	p. 90
Seller Disclosures Are Complete and Accurate	p. 92
I Should Buy the Biggest House at a Bargain Price	p. 95
I Should Always Use an Attorney	p. 96
I Don't Need an Inspection - It Looks Great to Me!	p. 97
I've Seen Enough, I've Found the Home I Love!	p. 100
It's Okay to Buy - This Area Is Booming	p. 101
All Sales Agreements and EMD Requirements Are Standard	p. 103
I Can't Withdraw My Offer - It's Too Late	p. 106
Beware of Foreclosures - They're a Headache	p. 107
I Make Money When I Sell - Not When I Buy	p. 114
My Tenants Will Finance My Investment Property	p. 116
The Mortgage Process	p. 119
The Loan Process Takes a Long Time	p. 119
All Applications and Disclosure Forms Are Standard	p. 122
We're Approved: Our Worries Are Over!	p. 125
My Interest Rate Is Locked In and Guaranteed	p. 128
A Preapproval Is a Preapproval	p. 131
I Have to Let My Lender Escrow Taxes and Insurance	p. 132
I'm Self-Employed - Getting Approved Will Be Tough	p. 133
The House Needs Repairs - We'll Do Them Later	p. 135
Personal Profiling Is Part of the Approval Process	p. 137
It's Closing Time	p. 139
Someone Else Decides the Closing Date and Location	p. 139
Why Do I Need Title Insurance - I Can't Even Select the Provider	p. 140
It's Cheaper to Close at the End of the Month	p. 143
I Can't Review Documents in Advance	p. 144
The Seller's Home Warranty Protects Us	p. 146
The House Will Be in Move-In Condition	p. 149
It's All Triple-Checked and Ready to Go!	p. 150
I Need Homeowners Insurance to Cover the Entire Purchase Price	p. 152
I Need Credit Life Insurance to Protect Myself	p. 153
My House Payment Will Never Change	p. 154
The Refinance Game	p. 157
Never Refinance Until the Rate Is 2% Lower	p. 157
I Should Never Refinance Into a Higher Interest Rate	p. 161
I'm Not Allowed to Pay Extra-There's a Prepayment Penalty	p. 164
Reverse Mortgages Are a Bad Idea	p. 166
My Terms May Change If the Loan Is Sold	p. 169
Refinancing Is Easy-I Already Qualify	p. 170
Refinancing: Better than Home Equity or Construction Loans	p. 172
Low Inflation Means Low Appreciation	p. 173
I Have to Live There at Least Three Years to Break Even	p. 175
Refinancing Is a Cheap Way to Get Cash	p. 177
My Escrows Are Already Set Up	p. 179
Short of Cash? Creative Financing Solutions	p. 181
I Can't Use a Gift for a Down Payment	p. 181
A Biweekly Mortgage Simply Changes My Payment Schedule	p. 183
Seller Financing Is Risky and Expensive	p. 185
Government Loans Are Only for low-Income Borrowers	p. 189
No Bank Will Finance Us	p. 190
A Lease-Option Plan Is Always a Bad Idea	p. 197
I Can't Make My Payments, So I'll Lose My Home	p. 200
Appendix	p. 207
Consumer Handbook on Adjustable Rate Mortgages	p. 209
Buying Your Home	p. 223
Mortgage Application-Form 1003	p. 245
Sample Good Faith Estimate	p. 249
Sample Truth in Lending Disclosure	p. 250
Sample HUD-1 Closing Statement	p. 251
Homebuyer Checklist	p. 253
Home Financing Checklist	p. 259
Personal Qualification Form	p. 260
National/State Associations and Regulatory Agencies	p. 260
Additional Resources	p. 269
Homebuyer Education Classes	p. 269
Other Web Site Resources	p. 269
Terms You Need to Know	p. 270
Index	p. 273
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