Mortgage Blog

A stated income mortgage may be the best option for you if you have verifiable employment and have an acceptable credit score. It may also be a good option for you if you are self-employed.

On the loan application you simply state your income. The Lender will verify your employment but not your income. These loans are offered with fixed and adjustable rates for qualified buyers.

The interest rates on stated income loans are sometimes higher than those on fully documented loans because the Lender is assuming more risk. So consider this product carefully to make sure it meets your needs.

Stated Income loans offer simplicity to the mortgage process with the convenience of less documentation than a traditional home loan. For more information on this and other products please call 800-461-2986. Our Mortgage Specialists will be happy to help you make the right decisions.

“Bait and Switch” is a dishonest sales technique long used in appliance and auto sales. In recent years it has become ever more prevalent in the mortgage business. Bait and switch is a way of luring in clients by offering a below market price. Once the client is in the showroom they are informed that the last item at that price has been sold “but we have another for just a little more”. In the mortgage industry it takes the form of advertised interest rates that are below the true market rate. The problem is dishonest and even crooked mortgage originators who are using these tactics to win customers in a tough lending environment. At first everything seems to go well; then just before closing the unsuspecting consumer gets a call informing them that a “mistake” was made and they can no longer offer the quoted rate but “for just a little more” they can complete the loan. This works because many customers will shrug their shoulders and go ahead and close the loan. Vowing never to get swindled again.

Consumers however are not completely blameless. The notion that you can shop for a mortgage like you would shop for a MP3 player is seductive but very false. Your home is a lot more important than a cheap disposable music player. If you shop for a mortgage like you would shop for a cheap electronic item you are likely to run into one of the bad actors. The way to avoid this is to ask for a referral from people you know. A Lender or Broker referred to you by a satisfied customer is much less likely to cheat you than one you found on the internet.

OK so we are on the internet too but there is another way to find a reputable Lender. Check to see if they are a member of the Better Business Bureau (BBB). If they are not a member don’t consider them. Ethical businesses choose to join the BBB, unethical ones don’t. Make sure that the mortgage company has been in business for at least two years. Otherwise remove them from consideration as they have not been around long enough to develop a track record. Finally check the BBB ranking. If they have been in business for two or more years and have a good reputation with the BBB then you are probably on the right track. Also remember the old adage about a “deal to good to be true”. It usually is. It’s up to you the consumer. You can put the hucksters out of business by following these simple tips.

Oh and finally, you can check us out on the BBB. View our recond at BBB NEFLA and give then us a call at 800-461-2986. We will be delighted to give you a quote you can trust.

Declining home sales, rising foreclosures and Lenders going out of business; these stories have been all over the news lately. Often you will find the finger of blame pointed at the mortgage broker. “Mortgage Brokers were greedy” you will hear. Certainly some mortgage brokers were greedy and a few may have broken the law but all in all we mortgage brokers are just as honest as the rest of the population.

Anyway it is unfair to lay the blame for the current crisis with the mortgage professional. We don’t set monetary policy. The Federal Reserve, Mr. Greenspan and Mr. Bernanke decided on a “loose” money policy. They showered lenders with cheap cash. The Lenders with lots of money in their pockets found new but entirely legal ways to lend it and off we went on the crazy roller coaster ride.

But now that things have gone bad what should we do? The usual voices are to be heard arguing against “bailouts”. However, I would argue for a targeted effort to aid distressed borrowers. Why bail them out – did they not get themselves in this mess? This is certainly true for many of them. However you should understand that if the mortgage market collapses it will hurt the public in many ways. That home equity line that you were planning on using to fix your roof may no longer be available. You may not be able to find a mortgage for that new home you wish to purchase. Moreover the housing sector is such an important part of the economy that we cannot allow it to implode. Doing so would sink the whole economy.

When the ship finally rights itself, what then? The simple answer is regulation. If the powers that be don’t want Lenders making risky loans then simply set restrictions on how and when Lenders can loan money. If you don’t the pressures of the marketplace will eventually force every Lender and Broker to return to risky lending practices. The reason is simply, if my competitor is offering a loan product and I don’t guess who has the competitive advantage?

Let’s learn from this mistake and move on. Sink or swim might be a good idea in some venues but not when we are all in the same boat.

Your credit report is a record of your credit activities. It lists all of your credit card accounts and loans, the balances as well as your payment history. It also shows if any action has been taken against you because of unpaid bills such as a lawsuit or bankruptcy filing. Because businesses use this information to evaluate your applications for credit, insurance and employment, it’s important that the information in your report is complete and accurate, especially if you plan to make a big purchase like a home.

The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission (FTC), is designed to promote accuracy and ensure the privacy of the information used in consumer reports. Under the FCRA, both the credit reporting agency (CRA) and the organization that provided the information to the CRA (usually the credit card company) must correct any errors or incomplete information in your report.

If you do encounter a mistake on your credit report, several steps need to be taken to correct the matter:

1. The first thing to do is get a copy of your credit report from each of the three major CRAs: Equifax, http://www.equifax.com; Experian, http://www.experian.com; and TransUnion, http://www.tuc.com.

2 In a written letter, tell the CRA what information you believe to be inaccurate. Include copies (not originals) of documents that support your position. Provide your complete name and address, identify each item in your report you dispute, and request deletion or correction. Be sure to make copies of your dispute letter and enclosures.

3. Send your letter by certified mail, return receipt requested, so you can document what the CRA received.

4. The FCRA mandates that all CRAs reinvestigate the items in question — usually within 30 days — unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the credit card company. After the credit card company receives notice of a dispute from the CRA, it must investigate, review all relevant information and report the results to the CRA.

5. If the disputed information is found to be inaccurate, the credit card company must notify all nationwide CRAs so they can correct this information in your file. Disputed information that cannot be verified must be deleted from your file.

6. When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the credit card company verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the credit card company.

7. In addition to the CRA, you should also write to the credit card company about the error. Again, include copies of documents that support your dispute. If you are correct — meaning the information you disputed is found inaccurate — the credit card company cannot use it again. Further, at your request, the CRA must send notices of corrections to anyone who received your report in the past six months.

If you decide that you need professional help call our friends at Ovation Law 1-866-629-3426. They specialize in credit repair. If you use our code ANT929 they will give you a special discount on their services.