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37 Mortgage Insiders Shopper Tips
The “Run, Don't Walk” Checklist
Many folks believe getting a handful of Good Faith Estimates and picking the company with the lowest cost estimate is the right way to shop for a mortgage.
After 15 years in the mortgage industry, I can unequivocally say…boy, is that wrong!
To learn why shopping by Good Faith Estimate is a waste of time, read my report, “Shopping By Good Faith Estimate is Silly”. Once folks learn the frivolity of using estimates, the most asked question I hear is, “If estimates are out, how do I pick one mortgage company over another?”.
To answer that question, I put together the “Run, Don’t Walk” Checklist for mortgage shoppers. To use the checklist, remember, if the company/loan officer you’re evaluating, possess, says, or demonstrates any item on list….Run, Don’t Walk!
Well, here we go: The Checklist
Dispelling Homeowner Myth 14: Never Buy Before You Sell Buy Before You Sell.
Too Risky Right? Wrong!
How NOT to Pick a Real Estate Agent!
I can’t tell you how many times over my 15 years in the mortgage industry when I ask potential clients how they picked their agent, I hear, “Oh, my brother-in-law is an agent”.
Yikes!
| Mortgage Insider Show 9-16-06 Listen online |
| No Closing Cost Mortgage Advertising Is A Lie No Closing Cost and Flat Fee mortgage advertising in a word is a rip-off. So much so that California regulators outlawed the use of the phase in all mortgage advertising in their state. All state mortgage regulators should immediately adopted the same restriction if they truely want to protect mortgage consumers. Until then, the rest of the country is fair game. That means you! Read this carefully and learning to protect yourself. Not do so can cost you $20,000, $50,000 or even $100,000 over your mortgage paying lifetime. Let's get started... |
| Thursday's bond market has opened in negative territory despite slightly weaker than expected economic data. The stock markets are showing early gains again with the Dow up 20 points and the Nasdaq up 4 points. The bond market is currently down 5/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point. The final revision to the 2nd Quarter Gross Domestic Product (GDP) was released this morning along with weekly unemployment claims. The GDP was revised lower from the previous estimate, which can be considered good news for bonds. The 2.6% rate of growth was down from the earlier estimate of 2.9%. The key inflation reading of the data remained at its previous estimate. But since this data is aged and the first reading of third quarter activity will be released next month, this news was not enough to fuel buying in bonds. The Labor Department said that 316,000 new claims for unemployment benefits were filed last week. This was close to forecasts and even though we saw an upward revision of 4,000 claims for the previous week, this data has not had much of an impact on the bond market or mortgage rates. There are two reports scheduled for release tomorrow morning. August's Personal Income and Outlays and the revised reading to the University of Michigan's Consumer Sentiment Index for September will both be posted tomorrow. The first will be released early morning and gives us an indication of consumer ability to spend and current spending habits. This is important to the markets because consumer spending makes up two-thirds of the U.S. economy. Rising income generally indicates that consumers have more money to spend, making economic growth more of a possibility. This is bad news for the bond market and mortgage rates because it raises inflation concerns, making long-term securities such as mortgage related bonds less attractive to investors. It is expected to show a 0.3% rise in income and a 0.2% increase in spending. The Michigan index measures consumer confidence and is believed to indicate future consumer spending strength. The preliminary release earlier this month revealed an 84.4 reading. Analysts are expecting to see a small upward revision, bringing the index around the 85.0 level. A lower reading should help improve mortgage rates tomorrow morning, depending on the results of the income and spending data. |