Mortgage Myths: 77 Secrets That Will Save You Thousands on Home Financing

MORTGAGE MYTHS: 77 Secrets That Will Save You Thousands on Home Financing......Page 6
Contents......Page 10
Introduction......Page 22
SECTION 1: Where Do I Start?......Page 26
Renting Is Better than Buying.......Page 27
I Can’t Qualify for a Loan.......Page 32
Only U.S. Citizens Can Qualify for a Mortgage.......Page 36
I Should Look at Some Houses First.......Page 37
I Need a Down Payment - But I Don’t Have the Funds.......Page 41
I Should Make the Biggest Down Payment I Can.......Page 43
All Mortgage Companies and Loan Officers Are Licensed and Regulated.......Page 46
Big Lenders and Major Banks Are Always Better.......Page 49
My Best Bet Is to Use a Friend (or Someone Local).......Page 51
I’ll Find a Better Deal on the Internet.......Page 54
I Can Get a Higher Return by Investing in Stocks.......Page 58
My Main Goal Is to Snag the Lowest Interest Rate......Page 62
The Federal Reserve Controls Interest Rates.......Page 67
Stay with Fixed Rates - ARMs Are Just Too Risky.......Page 68
A Shorter Term Always Beats a 30- or 40-Year Term.......Page 72
My Credit History Needs to be Perfect.......Page 75
My Credit Score Determines My Loan’s Approval.......Page 80
Be Conservative - Don’t Stretch Yourself.......Page 86
I’m Divorced or Declared Bankruptcy, So I’ll Never Qualify.......Page 88
Special Financing Programs Aren’t Available to Me.......Page 91
I Should Avoid Mortgage Insurance.......Page 93
The Good Faith Estimate Guarantees My Closing Costs.......Page 96
I Have to Use the REALTOR/Builder’s Loan Officer.......Page 98
I’ll Save Big Money Buying FSBO.......Page 102
I Have to Shop Within a Certain Price Range.......Page 105
Everything Is Included in the Sales Price.......Page 107
The Appraiser Will Specify the Value and Any Required Repairs.......Page 108
The Real Estate Agent Will Protect Us.......Page 111
Condos Are Bad Investments and Hard to Finance.......Page 115
Seller Disclosures Are Complete and Accurate.......Page 117
I Should Buy the Biggest House at a Bargain Price.......Page 120
I Should Always Use an Attorney.......Page 121
I Don’t Need an Inspection - It Looks Great to Me!......Page 122
I’ve Seen Enough, I’ve Found the Home I Love!......Page 125
It’s Okay to Buy - This Area Is Booming.......Page 126
All Sales Agreements and EMD Requirements Are Standard.......Page 128
I Can’t Withdraw My Offer - It’s Too Late.......Page 131
Beware of Foreclosures - They’re a Headache.......Page 132
I Make Money When I Sell - Not When I Buy.......Page 139
My Tenants Will Finance My Investment Property.......Page 141
The Loan Process Takes a Long Time.......Page 144
All Applications and Disclosure Forms Are Standard.......Page 147
We’re Approved: Our Worries Are Over!......Page 150
My Interest Rate Is Locked In and Guaranteed.......Page 153
A Preapproval Is a Preapproval.......Page 156
I Have to Let My Lender Escrow Taxes and Insurance.......Page 157
I’m Self-Employed - Getting Approved Will Be Tough.......Page 158
The House Needs Repairs - We’ll Do Them Later.......Page 160
Personal Profiling Is Part of the Approval Process.......Page 162
Someone Else Decides the Closing Date and Location.......Page 164
Why Do I Need Title Insurance - I Can’t Even Select the Provider......Page 165
It’s Cheaper to Close at the End of the Month.......Page 168
I Can’t Review Documents in Advance.......Page 169
The Seller’s Home Warranty Protects Us.......Page 171
The House Will Be in Move-In Condition.......Page 174
It’s All Triple-Checked and Ready to Go!......Page 175
I Need Homeowners Insurance to Cover the Entire Purchase Price.......Page 177
I Need Credit Life Insurance to Protect Myself.......Page 178
My House Payment Will Never Change.......Page 179
Never Refinance Until the Rate Is 2% Lower.......Page 182
I Should Never Refinance Into a Higher Interest Rate.......Page 186
I’m Not Allowed to Pay Extra - There’s a Prepayment Penalty.......Page 189
Reverse Mortgages Are a Bad Idea.......Page 191
My Terms May Change If the Loan Is Sold.......Page 194
Refinancing is Easy - I Already Qualify.......Page 195
Refinancing: Better than Home Equity or Construction Loans.......Page 197
Low Inflation Means Low Appreciation.......Page 198
I Have to Live There at Least Three Years to Break Even.......Page 200
Refinancing Is a Cheap Way to Get Cash.......Page 202
My Escrows Are Already Set Up.......Page 204
I Can’t Use a Gift for a Down Payment.......Page 206
A Biweekly Mortgage Simply Changes My Payment Schedule.......Page 208
Seller Financing Is Risky and Expensive.......Page 210
Government Loans Are Only for Low-Income Borrowers.......Page 214
No Bank Will Finance Us.......Page 215
A Lease-Option Plan Is Always a Bad Idea.......Page 222
I Can’t Make My Payments, So I’ll Lose My Home.......Page 225
Appendix......Page 232
Additional Resources......Page 294
Terms You Need to Know......Page 295
Index......Page 298