Yes! Getting a loan these days can be scary. Even experienced borrowers have been taken advantage of by unscrupulous loan officers. Don’t let it happen to you. I have five must read tips to fend off a potential loan disaster.

Before reading the tips, keep in mind there are credible, ethical, good guy (and gal) loan officers across America and they’re just as mad as you are about the rats that feed off of unsuspecting people. Make no mistake; great loan officers know it is in their best interest to make sure you are an informed borrower.

Here are some things BAD loan officers do:

·       Manipulate borrowers to take loans and rates that pay the loan officer more than what is agreed upon.

·       Charge much more in origination using random excuses (your credit’s not good enough, you can’t verify your income, you’re getting cash out, etc.)

·       Convince people to do a loan when it’s not in their best interest.

Let’s weed out the bad guys! Here are the five tips…

Tip #1: Interview your loan officer

Ask for more than just rates. Bad loan officers will tell you anything to keep you on the phone – then change the details to suit them later. Instead, make them get real with you! Ask how long they’ve been in the industry. Probe them about their experience in the industry. Also, ask what their opinion is on the current market and where it’s going.

Listen closely. Do they have the patience to answer your questions or do they seem annoyed. Is their voice hesitant? Unsure? Pay attention to your instincts. If you have a ”funny” feeling in the pit of your stomach, chances are you should move on. (More questions to ask while interviewing located in the free eBook)

 Tip #2: Make sure the loan is in your best interest

Here’s the deal… most loan officers are paid on commission (many on commission only).  That means they don’t get paid unless they complete a loan with you. The problem is “their loan” may not be in your best interest. You need to look at what’s being presented and decide if it meets your needs. Some things you should consider: How much is the loan costing you?  Is there a term reduction?  Are you adding too much to your balance?

You should do a cost-to-savings benefit analysis.  This is where you take the total cost of the loan and compare it to the benefits of the loan (monthly savings, cash out, term reduction, etc).  This will help you determine if the loan is worth it to you. (See examples of cost-to-savings benefit analysis in the free e-Book)

Tip #3: Consider your loan options carefully

You may be saying, “Yikes! There are so many to sort out!” True… there are many different loans out there to consider: 5/1, 7/1, 10/1 ARMs (Adjustable Rate Mortgages)… 30Yr, 20Yr and 15Yr Fixed rates… Neg Ams, Hybrid Option Arms, Helocs, etc.  But, keep in mind that each loan has its own unique purpose and function.  Choice is good and it’s the loan officer’s job to help you find the best loan for your purpose.  That’s why it’s important that your loan officer explains the loans they are presenting in FULL detail.  Again, take notes. Ask questions until you feel comfortable with the options presented.  

Tip #4: Discuss fees up front

Don’t EVER let the loan officers skate past this one! People are often so concerned about the interest rate quotes they neglect to ask about the fees associated with those rates.  This is a HUGE mistake because that’s how loan officers get paid!

The truth is, most loan officers have access to the exact same rates sheets that everyone has.  What determines the rate they offer is based upon how much they want to make on the front and back-end of that loan.  (Don’t miss Tip #5 to find out how loan officers get paid)

Learn how to negotiate fees. A simple way to stay on top of loan rates is to ask the loan officer how much they are willing to do the loan for overall: 1, 2, 3 points?  Each “point” is a percentage point of the loan amount (1 point = 1 percent).  Once you’ve negotiated how much the loan officer gets paid, he or she can show you how the interest rates go up or down depending on how much you want to pay up front or have the lender pay.

Tip #5: Get a complete GFE (Good Faith Estimate)

These days most people request a Good Faith Estimate (GFE), but have no clue what to look for on the GFE.  Make sure you request a GFE that has ALL fees estimated and disclosed.  This includes: origination points, processing, lender, appraisal, title, escrow… ALL FEES… especially the Yield Spread Premium or YSP. 

YSP is also known as rebate.  This is what the loan officer receives from the lender on the “back-end” of the deal for up-selling the rate.  This is why it’s so IMPORTANT to discuss fees up front.

For example: you may agree to pay 2 points for the transaction with the loan officer.  When you look at the GFE you see 2 points for origination (exactly what you thought you agreed on), but when you look further down, you see the loan officer is getting 1 point YSP.  This means they are really getting paid 3 points on the deal. That’s your cue to find another loan officer. If you STILL choose to work with him you should insist that he reduce the origination fees to 1 point or reduce the interest rate to the point where there is 0 points YSP. (For more detail on YSP look in the eBook)

Don’t get ripped off by your loan officer! Think of these simple tips as opportunities to keep you in charge of your loan. Refinancing doesn’t have to be painful. Make sure you’re working with one of the good guys! 

Happy hunting and best of luck,

Brodie Rucinski

Download your free copy of the full eBook at: http://www.Top5RefinanceTips.com

The home loan debacle has caused big problems for those interested in buying a home, but who don’t have perfect credit. Even those with really good credit are finding it difficult to get a home loan simply because the banks are not interested in making any more bad loans, so they simply don’t want to make any loans!

This is putting the real estate market in the trash and affecting the financial market in many ways. It’s difficult to accept for many because just a few years ago practically anyone who applied for a home loan was approved, regardless of their credit. That’s a big reason why the home loan debacle happened in the first place.

It simply does not make sense to give people with bad credit a home loan. They have bad credit for a reason, and if they didn’t pay their credit cards and other responsibilities it doesn’t make sense that they would pay their home loan. Regardless, banks approved home loans for practically everyone who wanted one.

Now, the real estate market has a problem because of the home loan fallout. Homes sit on the market with no buyers in sight. And, once a buyer does show interest it is difficult to actually get approved for a loan. So, home prices are plunging and there is no immediate recovery in sight.

The Future is Bleak

For the moment, home prices are dropping to 75% of their previous value. Some believe this is as low as they will go and prices will go back up. However, other analysts believe the country will enter a full out recession and prices of homes will drop as much as 40%.

That remains to be seen, but one thing is for certain and that is that the real estate market needs some help. As long as banks are being stingy with loans, then the real estate market has no way to recover. That’s because without home loans people can’t buy homes.

And, the banks aren’t being very generous with loans right now so the real estate market has nowhere to go but down. People with really good credit are the only ones with any hope of buying their own home these days, and that makes sense from a home loan point of view.

That’s because banks have less risk when they loan to those with good credit than when they make a bad credit loan. The market is uncertain at the moment, but it will eventually go back up even if it still has to go down some more. That has always been the case in history and once the market falls significantly it has nowhere else to go but up.

So, hopefully the recession will be short lived and home loans will not be so difficult to obtain in the future. They should be, however, reserved for those with demonstrated good credit and an income to repay the loan. This will keep the banks from being in this situation again in the future.

Whether it is about small to big projects which requires small scale finance or 100% development finance, the development finance UK can provide you funds to make your venture successful. This is true not just for the needed residential development finance but also for commercial development finance. However, not all businesses will need 100% development finance in acquiring commercial property or any funding for commercial property development. Arrangements are usually dependent on the type of industry, the purpose of funding, and the capability of the investor to support the finance.

Commercial mortgage is one tool that can be arranged from development finance UK. When it comes to keeping a business going in the right direction or establishing new business ventures, commercial mortgages are extremely useful ways of generating equity to ensure continued success in your the kind of business you’re in. There are many benefits in using commercial mortgages. One is that it can raise money for working capital or an injection of cash flow. Another is that it offers the opportunity to consolidate expensive short term finance. Commercial mortgages can also increase profitability through refurbishments, improving or expanding a business property. The repayments for commercial mortgages may be similar to rental repayments therefore it not necessary to budget additional property expenditure or any increase in rent. And lastly, but not the least, the interest on business mortgages is generally tax deductible.

Knowing these benefits, commercial mortgages may be the right option for your property acquisition especially if you are just starting out in your business venture. And instead of renting from commercial properties, dealing with brokers for development finance UK will go you options to get affordable mortgage arrangement.

Have you ever thought about refinancing your current car loan? In the past few years, automotive refinancing has become more and more popular – especially as the interest rates that independent used car dealers and even new car dealerships charge continue to go up. There is something you can do about it. You can decide to stop these higher payments now and opt for car refinance to bring your payments down. After reading this article, you may be interested in automobile refinancing for a new car that you have just purchased recently, or auto refinance for a used car.

There a few reasons why someone may want to refinance their auto loan. First, depending on your financial situation when you first applied for a car loan, you may have taken a “no credit” or “bad credit” Car Financing at a very high interest rate. If you have made on-time payments since, and possibly have other good credit marks from other companies (credit cards, mortgage, utilities, and others that report to the three major credit agencies – Equifax, Trans Union, and Experian), then regardless of your previous bad credit history, an auto refinancing loan can probably get you a much lower rate than you are paying now. In this way, diligent payments and hard work to clean up or create a good credit history to start with will pay off by giving you a much more affordable payment now.

Another reason why some people may be in the market for car loan refinancing may be that they had made a mistake when purchasing their vehicle to start with. Maybe a high-pressure salesman put them in a new car that is far too expensive for their current income. (This can happen easily and it is why it is a good reason to have the car in mind that you want to buy before you go to the dealer’s lot.) Or, because of poor credit, an auto loan with a very high interest rate was given. Often dealerships will take advantage of people in these circumstances and try to give them the highest interest rate possible, sometimes more than 25%! As people are pressured to make a decision on the spot, many times they take the bad loan to be able to drive away immediately, only to be sorry after they see how much the high payments will really impact their lifestyle.

If someone has good credit and they are looking for the lowest rate, Car Financing is a simple matter. There are many companies to choose from and most can offer you a much lower rate than you are paying now. However, you absolutely can also refinance a car with poor credit. Auto refinance with bankruptcy or repossession, while it can be a challenge, is possible and there are many companies out there to work with. Online car refinance lenders are typically able to help most people out of their bad credit car loans and into an auto refinance loan that more adequately matches their needs.

Many homeowners apply for home equity loan for a variety of reasons. While some want to utilize the money to get rid of unmanageable debt, others want to add value to their existing home by restructuring and repairing. Whatever may be the reason, the home equity loan provides a homeowner the quickest and easiest means to get extra cash to meet unavoidable expenses.

In many cases, lenders are too willing to offer you home equity loan for the simple reason that the loan is secured by your property. The market is flooded with so many loan products from lending institutions that offer you excellent terms and conditions and leave no stone unturned to publicize their schemes on televisions and print. All this may leave you feeling baffled and confused about which loan product to pick. Before choosing which lending institution to go with, make sure to do some research. Shop online to obtain home equity loan quotes from different financial companies.

The problem is that the loan market is filled with reputable lenders as well as deceitful lending companies. While most of the lenders will offer competitive terms and conditions, there are also a few who will try to trick you into a bad loan. When you are taking out a home equity loan, you are using your house as the collateral. In case of any default, the lenders may lay claim on your property. The dishonest lenders work towards this end; which is why they purposely push you into a bad loan.

How can you differentiate between a good lender and a bad one? The bad lenders use certain deceptive tactics to put you into a debt trap and to eventually grab your property. The most common trick is to tempt you to take out more loans or more than you can actually afford. Using forged documents or making you sign on blank documents are some other tactics employed by these dishonest lenders.

It is important to get your loan from a reliable moneylender. But distinguishing between a clean dealer and a shady dealer is a tough job indeed. It is important that you do some research for a suitable lender. Shop on the internet and obtain multiple quotes from different lenders; identify the honest and the dishonest lenders. A sign of a dishonest lender is that it will tend to charge an interest rate that is two or more percentage points above the average.

In a nutshell, compare the loan fees and other costs, choose the best loan term and lock in the lowest rate to seal the best deal.