Frequently Asked Questions--Mortgage, Mortgage, Mortgage

WHY DOES THIS BLOG SPEND SO MUCH TIME ON MORTGAGE ISSUES?

This is a very easy question to answer. In 2005-2006 the only requirement for getting a mortgage was having a pulse (although there was probably some mortgage fraud going on that allowed dead people to acquire mortgages as well). The crash in the credit market has made getting a loan very difficult, if not downright impossible for many. The desire to own a home hasn't changed, but the ability to do so has changed radically. I am often asked when will the housing market recover. My best guess is that when the credit loosens the market will improve.

Understanding Mortgage Fees

Before signing onto a mortgage, make sure to educate yourself about fees, interest rates, and your loan eligibility. If you go in blindly, you'll wind up paying for it. 

The New York Times published a short article yesterday detailing the importance of understanding the mortgage process. 

Things to look out for--

Closing-cost fees can be a big trap unless the borrower knows that many of those fees are negotiable. 

Know what fees you can't change. 

Right now,  borrowers are at an advantage because brokers NEED business. Be aware that in the current lending environment, borrowers have more flexibility and power.

Know your credit. According to the NY Times statistics, a recent survey revealed that 70% of people didn't identify their credit scores as a leading factor for obtaining a mortgage. Credit scores also determine interest rates. 

It also helps if you live in a college-educated neighborhood---borrowers who live in these areas save more than $1000 in mortgage fees. 

For more stats and tips from the article, click the title below. 

Mortgages--A Close Look at All Those Fees