MortgagesUndressed

They say Washington State has over 10,000 loan officers. My hunch, my educated hunch is that 8,000 are struggling financially. When the loan officer is having a low income period the tendency is to make a killing on one loan.

Also, some, greedy little devils are out to take as much from your transaction as possible as just a mere course of life.

The lending business is so complicated that you may find it difficult to catch all of the ways you get hurt and the loan officer gets a fat paycheck thanks to your naiivity.

(I inject here, that a very recent real life situation brings this article to press.)

I also ask you - do you think that $15,000 on one $300,000 transaction is a bit over the top in fees you pay the mortgage company for a loan? If you say no to this you are not to whom we right this blog. You say you would never allow that kind of expenses for a loan, say a refi. Of course you wouldn’t if you understood it was happening. But the cowards I have worked with, employed and fired, or competed against, do this under a cloak, as if they were in your bank account and you were unaware.

A competitor this week got to a dear friend. I was supposed to advize them and make sure he or I had the best program for them. I got an email, not a shot.
In one short email I felt sad for my dear friend. These people have good credit. They have enough income to qualify for a conforming (low rate) loan.

This tells me they got ripped off. “We only have a 3 year prepayment penalty.” We get to take cash out for an investment we could not have made, and that’s above the price to get the loan.”

Their ain’t no prepayment penalties in good credit. These good people got sold a subprime loan. The coward is going to make his money in rebates.

Fortunatly the subprime lenders are in a tail spin. Unfortunatley the greedy little snakes are finding unsuspecting folks that deserve conventional loans, and giving them a song and a dance, some money back, and a subprime loan.

It is disgusting. It is also one of the reasons for this blog.

I know it is more fun to look on line at homes than to learn about the mortgage tricks. It is certainly easier to tell the difference between a 4 bedroom home than a three than to know to look for an ARM Margin or if it is an ARM at all.

I try to make these mortgage and real estate blogs a bit zaney. I am a zaney kind of guy when feeling my oats. I try to make them quick and easy reads. I inject things you need to know a little at a time. This is probably one of my longer articles. I do things this way in hopes more than the 100 mostly professionals that drop by will become many more, and many that are consumers.

I guarantee regular visits will eventually get you educated enough to know what to watch out for. What I can’t guarantee is if you will be mature enough to not jump for a smooth sales pitch, or too busy to not read what you sign, or too committed to see a problem and sign anyway. If we prepare, you prepare, before it is too late, you might save 10 grand or so and a lot of headaches.

To add to the services for you, I not only write from my experiences, I search for other great writings. Thus came about the magnificent 7. I calculate that in February I read 4000 articles looking for 7 I could nominate for the 7 Magnificent in 2007. It was hard to do that few, so I am putting up nine for your review. Some are on lending some on real estate. This month they are posted on realestateundressed.com.