Choose Right Mortgage Loan | Cory Ruppersberger

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Choose Right Mortgage Loan
Cory Ruppersberger
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Right Mortgage Loan
The mortgage industry has persevered through some
turbulent times as of recent years and the
current climate of the real estate lending keeps
on creating worry among borrowers. Some private
lending investors which are considered hard money
lenders specialists, for instance, give an
extraordinary return on investment to market
investors, yet without proper verifying a
borrowers credentials. Furthermore, one can
undoubtedly discover that not all lenders have
their borrowers best interest in mind. Its
important for borrowers to stay educated about
the moral issues emerging in the hard money
sector of the mortgage industry. Cory
Ruppersberger aggregated a list of some key
consideration that MUST be made before choosing
the right type of mortgage loan,
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Licensing Requirements for Mortgage Lenders
In today's business world, anybody can assemble a
site, print some business cards, and open a
company. Unfortunately, its become easier for
lenders to offer such predatory loan products.
Some hard money lenders and private capital
investors have been offering real estate
investors, promising financing capital for
investment opportunities, in spite of not having
the necessary licenses to do so. Before picking
a hard money lender, always make sure to check
your state's applicable department or the NMLS
(National Mortgage Licensing System) for license
information. If the money lender can't produce
this required license information, look for a
qualified professional! While you may have
received an extremely luring offer, there's
typically a catch and you may lose application
and appraisal fees by using a fraudulent lender.
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Predatory Lending Practices - Check the Fine
Print!
Numerous borrowers especially the elderly, have
received offers for home loans that tout "no
installments for 12 months". These loans were
commonly referred to as negative amortization
loans. These loans looked to be appealing at
first, as they clearly give the mortgage holder a
"teaser payment period" to move in and adjust to
the current monthly payment. In any case, what
the lender neglects to disclose is that once the
teaser period is over, the monthly payments
adjust to an amount in excess of the borrowers
monthly budget. The borrowers may struggle to
make the monthly payments, and within months, are
falling into an undesirable foreclosure
situation. Avoiding such consequences are
simple, however, it requires a financial
understanding to evaluate these fraudulent loan
products. Most of these products have been
eliminated by state and federal loan regulations
but it is still important to evaluate the terms
of your loan with the following questions. Can
afford to make the payment if the loan will
adjust? How many years is the fixed interest rate
period for your loan? Make sure your loan
originator provides you clear answers regarding
your loan terms or find a lender that can
summarize this information for you in a concise
way.
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Be Careful of Unscrupulous Tactics
A lender offers you a loan to get a home. The
payment on this home loan appears somewhat out of
your monthly budget, yet you are so excited about
owning your own home that you trust the loan
originator when they say "We've investigated your
financial accounts, and you can DEFINITELY
qualify for this property." Why wouldn't you
trust them? After All, it's precisely what you
wanted to hear, isn't that so?
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Loan goes to settlement and everything is great,
right? Not so fast
What you didn't know is that the loan originator
KNEW that you couldn't afford the payment for
this home. Many of these lenders have designed a
loan program that forces you into foreclosure so
they can retain the home for a profit!! State
and federal regulators have been successful in
prohibiting such lending practices in recent
years, but it is important for you to ask for
clear information from your lender on the terms
of your loan so you can avoid this costly
mistake. Before signing your name on a hard money
loan, make sure to refer to these tips.
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