Home Mortgage Loan - Top Seven Insider Secrets You Need to Know

By J Krohn

Unless you have been living under a rock for the last year or so you have no doubt heard of the "sub prime" scandal. Almost on a daily basis one story or another has hit the headlines making it impossible to miss.

As the story continues to develop, the surge in foreclosures, predatory lending practices and predatory lenders all contribute to the problem. How it happened and why it happened will be debated for years to come. Unfortunately it is not that simple. There is more than enough blame to go around.

It is not safe to say that it will never happen again. Greed will always be around. Where there is money there will always be greed both for lenders and borrowers alike. Here are some tips for you so you are not a statistic the next time we are in a real estate boom.

1. ---AVOID negative amortization loans. You may end up owing more than the property is worth commonly called being 'upside down.'

2. --- GET your "Good Faith Estimate" upfront and hold your lender accountable.

3. --- GET a "Good Faith Estimate" from both a broker and a direct lender like a bank for comparison not two brokers. It has been said of brokers in the mortgage biz "the biggest liar gets the deal."

4. ---AVOID pre payment penalties.

5. ---WATCH for "bait and switch" tactics. For example, as the closing date gets closer the lender may change the rate or other condition due to any excuse in the book feeling he puts you in a corner unable to do anything about it.

6. ---REMEMBER if you use a broker to chose wisely and only select someone thoroughly vetted preferably thru a third party you trust. Most states are very lax on any requirements to be a mortgage broker other than paying a fee. It is way too easy.

7. ---LASTLY most brokers are trying to get as much money as they can from you. KEEP YOUR EYES OPEN.

Use these seven insider tips and you may avoid being statistic. Don't be greedy!
Jack Krohn is a leading free lance writer on Home Equity and Mortgage issues with over 50 articles to his credit. He is also the #1 author of Home Security Articles in the country. He owns SECURITY SOLUTIONS a one stop resource that provides solutions and answers for all your self defense and home security problems.
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