Choose Right Mortgage Loan | Cory RuppersbergerA Story by Cory RuppersbergerIt’s important for borrowers to stay educated about the moral issues emerging in the hard money sector of the mortgage industry.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 borrower’s credentials.
Furthermore, one can undoubtedly discover that not all lenders have
their borrower’s best interest in mind. It’s 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, Licensing Requirements for Mortgage Lenders In today's business world,
anybody can assemble a site, print some business cards, and open a
company. Unfortunately, it’s 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. 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 borrower’s 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. 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? The 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. © 2017 Cory Ruppersberger |
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Added on January 30, 2017 Last Updated on January 30, 2017 Tags: Cory Ruppersberger, cory, Mortgage, mortgage loan, Mortgage Marketplace AuthorCory RuppersbergerColumbia, MDAboutCory Ruppersberger is a successful business entreprenuer that has over 20 years of banking and lending experience. He has worked in various roles such as underwriting, loan origination marketing and m.. more..Writing
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