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Top 5 Refinance Tips Your Loan Officer Doesn't Want You To Know (Page 1 of 2)
Yes! Getting a loan these days can be scary. Even experienced borrowers have been taken advantage of by unscrupulous loan officers. Don’t let it happen to you. I have five must read tips to fend off a potential loan disaster.
Before reading the tips, keep in mind there are credible, ethical, good guy (and gal) loan officers across America and they’re just as mad as you are about the rats that feed off of unsuspecting people. Make no mistake; great loan officers know it is in their best interest to make sure you are an informed borrower.
Here are some things BAD loan officers do:
· Manipulate borrowers to take loans and rates that pay the loan officer more than what is agreed upon.
· Charge much more in origination using random excuses (your credit’s not good enough, you can’t verify your income, you’re getting cash out, etc.)
· Convince people to do a loan when it’s not in their best interest.
Let’s weed out the bad guys! Here are the five tips…
Tip 1: Interview your loan officer
Ask for more than just rates. Bad loan officers will tell you anything to keep you on the phone — then change the details to suit them later. Instead, make them get real with you! Ask how long they’ve been in the industry. Probe them about their experience in the industry. Also, ask what their opinion is on the current market and where it’s going.
Listen closely. Do they have the patience to answer your questions or do they seem annoyed. Is their voice hesitant? Unsure? Pay attention to your instincts. If you have a “funny” feeling in the pit of your stomach, chances are you should move on. (More questions to ask while interviewing located in the free eBook)
Tip 2: Make sure the loan is in your best interest
Here’s the deal… most loan officers are paid on commission (many on commission only). That means they don’t get paid unless they complete a loan with you. The problem is “their loan” may not be in your best interest. You need to look at what’s being presented and decide if it meets your needs. Some things you should consider: How much is the loan costing you? Is there a term reduction? Are you adding too much to your balance?
You should do a cost-to-savings benefit analysis. This is where you take the total cost of the loan and compare it to the benefits of the loan (monthly savings, cash out, term reduction, etc). This will help you determine if the loan is worth it to you. (See examples of cost-to-savings benefit analysis in the free e-Book)
Tip 3: Consider your loan options carefully
You may be saying, “Yikes! There are so many to sort out!” True… there are many different loans out there to consider: 5/1, 7/1, 10/1 ARMs (Adjustable Rate Mortgages)… 30Yr, 20Yr and 15Yr Fixed rates… Neg Ams, Hybrid Option Arms, Helocs, etc. But, keep in mind that each loan has its own unique purpose and function. Choice is good and it’s the loan officer’s job to help you find the best loan for your purpose. That’s why it’s important that your loan officer explains the loans they are presenting in FULL detail. Again, take notes. Ask questions until you feel comfortable with the options presented.
Bankruptcy as an Emergency
The current financial turmoil has resulted in a lot more people getting to know the intricacies of Bankruptcy.
With the alarming rate of job losses, salary cuts and persons going out of business, this was only bound to happen. It is a sad phenomenon, but one cannot be just sad about it and let what follows befall upon themselves.
The more people know about Bankruptcy as a topic, the better it is. I must assert here that the Law of Bankruptcy protects and helps you regain control of life which gets stolen by the financial troubles. It is therefore imperative for everyone to at least know about the existence of such a law and who they need to approach in case they face an economic breakdown.
My experiences in dealing with Bankruptcy cases have confirmed the idea that persons try and avoid filing a Bankruptcy as much as they can. Why? I do not know. I presume that a sense of shame and guilt coupled with a total lack of knowledge about the provisions under Bankruptcy lead to this.
However, one must realize that any hesitation in breaching the topic of Bankruptcy should be overcome in a positive sense as Bankruptcy does not happen by itself. It is a form of clever manipulation of figures and words by creditors which gets many of us to the point of total financial breakdown. And if you do nothing about it and to protect your savings, property, etc. then that is the point when shame gets some justification. After all you owe it to yourself and your family to try and save as much as possible of your savings and assets.
Even if you are in a situation where you have defaulted on your payments and received calls from your creditors asking to verify your address, or received default of payment notifications, etc. filing a Bankruptcy can stop short and delay almost all incidents of repossession, foreclosure, eviction and taking of money from your bank account.
Usually such happenings do not take place without warnings. And if you remain alert about the communications you are receiving from your creditors then more often than not you can predict the course of action they might follow.
In such situations it becomes very important for you to seek the advice of a Bankruptcy Attorney.
Only an experienced Bankruptcy Lawyer is best equipped to evaluate your case and advise you the perfect plan of action to be taken for proper protection from your creditors. But then again, do not land up empty handed for an appointment with your attorney. Be sure to carry any and all papers relating to your current financial condition, your source of income, additional credits or loans, tax returns filed, etc. When in doubt it is always better to make a phone call and inquire about the documents you need to carry along with you.
Your meeting with the Bankruptcy Attorney is your first step towards delaying or stopping repossessions, foreclosures, evictions, etc. As soon as your attorney files your papers with the courts (this can be done electronically) it stops short all evictions, repossessions and foreclosures.
Just remember that you can rescue your life savings and assets, even if you file your Bankruptcy in an Emergency!