Mortgage Lenders
July 28, 2016 at 4:25 p.m.
By -
You have heard the phrase, "Yes, Virginia, there is a Santa Claus."
Well, Virginia, yes, there are good mortgages available in Fort Wayne. You can buy a home and know that the transaction will be completed and closed in the normal manner, at a competitive rate. You can still get equity out of your home to enable your children to attend college. You can still borrow money to make major improvements to your home.
The first thing one reading this column would ask is, "What about all that we have been hearing the past weeks, month and year about the mortgage industry?" Yes, there are many problems in the mortgage business, but good mortgages are still available. Borrowing a large amount of money is serious business, and you should do research on whom you do business with (make sure you get the right advice and lender).
What caused all the bad news and happenings? Everybody points the finger at somebody else. My three reasons are:
The government wants everyone to have home ownership, and therefore makes down payment gifts and allows 100 percent loans to value. Maybe it makes it easier to walk away from your home if you have put no money into owning the home. These borrowers are not told that there are other costs with owning a home besides a monthly payment.
The mortgage industry has its share of people trying to make a quick dollar without concern for truly helping its clients. Licensing has never made everybody honest, but it gives the approval seal to many who do not have the consumers' best interests in mind. Just because you hear something on the radio, TV, Internet or newspaper doesn't mean it's true or good. These are paid ads.
Wall Street jumped into sub-prime lending to make money, and when things got shaky, it pulled the plug and mortgage companies had to get money elsewhere or close.
Who to trust? There are old companies and new companies in the mortgage business. Some are local, some are not. Some are independent, and others are sponsored by real estate companies. Some are good, and some might be questionable. Every industry has its good and bad members. Check with attorneys, accountants, the Better Business Bureau, title companies and financial advisers. Make sure you get good-faith estimates and truth-in-lending quotes from at least two lenders. The APR rate should be close to the mortgage rate unless you are buying down the rate. Be careful of prepayment penalties, which keep you tied to your lender if you should want to refinance for cash-out or a rate improvement or to sell your home.
There are mortgage loans available at great rates. Just make sure your lender has all the tools to make the loan process work to your benefit. Enjoy your experience because it should not be difficult, even in these times.
Tyler S. Pequignot
Warsaw, via e-mail[[In-content Ad]]
You have heard the phrase, "Yes, Virginia, there is a Santa Claus."
Well, Virginia, yes, there are good mortgages available in Fort Wayne. You can buy a home and know that the transaction will be completed and closed in the normal manner, at a competitive rate. You can still get equity out of your home to enable your children to attend college. You can still borrow money to make major improvements to your home.
The first thing one reading this column would ask is, "What about all that we have been hearing the past weeks, month and year about the mortgage industry?" Yes, there are many problems in the mortgage business, but good mortgages are still available. Borrowing a large amount of money is serious business, and you should do research on whom you do business with (make sure you get the right advice and lender).
What caused all the bad news and happenings? Everybody points the finger at somebody else. My three reasons are:
The government wants everyone to have home ownership, and therefore makes down payment gifts and allows 100 percent loans to value. Maybe it makes it easier to walk away from your home if you have put no money into owning the home. These borrowers are not told that there are other costs with owning a home besides a monthly payment.
The mortgage industry has its share of people trying to make a quick dollar without concern for truly helping its clients. Licensing has never made everybody honest, but it gives the approval seal to many who do not have the consumers' best interests in mind. Just because you hear something on the radio, TV, Internet or newspaper doesn't mean it's true or good. These are paid ads.
Wall Street jumped into sub-prime lending to make money, and when things got shaky, it pulled the plug and mortgage companies had to get money elsewhere or close.
Who to trust? There are old companies and new companies in the mortgage business. Some are local, some are not. Some are independent, and others are sponsored by real estate companies. Some are good, and some might be questionable. Every industry has its good and bad members. Check with attorneys, accountants, the Better Business Bureau, title companies and financial advisers. Make sure you get good-faith estimates and truth-in-lending quotes from at least two lenders. The APR rate should be close to the mortgage rate unless you are buying down the rate. Be careful of prepayment penalties, which keep you tied to your lender if you should want to refinance for cash-out or a rate improvement or to sell your home.
There are mortgage loans available at great rates. Just make sure your lender has all the tools to make the loan process work to your benefit. Enjoy your experience because it should not be difficult, even in these times.
Tyler S. Pequignot
Warsaw, via e-mail[[In-content Ad]]
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