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Loan Tactics

September 29, 2006

Loan Tactics

“Neither a borrower nor a lender be.”

Poor Richard lived in an era when it was possible to be neither. However, times have changed. It is virtually impossible to live today without borrowing money.

An investment that most of us will make is a mortgage. And in the world of mortgages, the principle of caveat emptor applies, more so than in many other business transactions.

The problem lies with lenders who are less than straightforward about what they do. Unfortunately, they are out there, and the ethical businesses despise them as much as consumers do.

So what does the smart borrower do before making a commitment? He checks out potential lenders.

A great aid in doing so is today's FamilyFirst site. It's entitled Loan Tactics.com. It's powered by a group of mortgage brokers, processors, Realtors, and underwriters who hate to see people get ripped off. Here's what they offer in their own words:

Knowing how busy people's lives are, we declined writing a tell-all book about the business. It may not only be boring, but it would be a overload of information, it's like reading a book on flying while piloting a plane. We thought of newsletters, but that would defeat the purpose because it would give hints to vultures, or the people inside our own business. So we came up with the best choice for our customers and our passion, a 24/7 hour correspondence help desk. It would allow us to let off some steam, practice our craft, and help those who want a better deal but don't know how to get it.

The sad fact is that unscrupulous lenders misrepresent how much your closing costs and interest rates will be. How do they get away with it? Clever advertising. Telling you what you want to hear. Neglecting to tell you essential facts you need to know.

So spend some time hear and get a vital education. The next time you borrow money, know what to look for to ensure that you are dealing with an ethical broker.

www.loantactics.com

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Written by baldguy at September 29, 2006 12:38 AM

Comments on “Loan Tactics”

So far, there are 4 comments on this entery. Why not add yours!

  1. David Yomtov on October 7, 2006 12:02 PM

    "Neither a borrower nor a lender be."

    Poor Richard (aka Ben Franklin) may have said this at some point, but the quote should be attributed to Polonius' advice to Hamlet in Shakespeare's play.

  2. Terri Bru on October 7, 2006 03:37 PM

    I wish this was around on my first loan. Man did I get taken. I have used this site, and recommended to several people. Trusting Lenders and their Brokers is like tursting politicians. Their Ads are just more lies.
    I not only saved money(some$14,000) and better rate, but they teach you along the way. I wish they would advertize.

  3. erik on March 21, 2008 10:57 AM

    It's' a sad fact that a lot of people are having to pay a heavy price for the greed of others. If you need to consolidate debt, you need to find someone you can trust.

  4. hard money loans on December 15, 2008 03:53 PM

    A bad credit mortgage refinance can either profit the borrower, or cause further credit damage. Before deciding on a mortgage refinance, each homeowner owes it to themselves to take into account the pros and cons. Whereas a refinance may put additional cash in your pocket and meet a variety of expenses, it may also increase monthly repayment obligations and involve additional fees.

    Here is some advice for people looking to refinance their home loan.

    1. Avoid "Cash-Dazzle" Tactics

    To entice a homeowner to cash-out their equity, mortgage lenders use a variety of "cash-dazzle" tactics. For example, a bad credit homeowner with significant equity may inquire about a refinance loan with the intention to extend the term and hopefully lower their monthly payments. The mortgage lender may encourage a cash-out refinance and excitedly talk about good uses for the money. Homeowners are beguiled by the large cash disbursement; and take the cash-out option without weighing the disadvantages such as higher repayment and interest rate.

    2. Refinance with Current Mortgage Lender

    There are several reasons why a bad credit borrower should refinance with the same mortgage lender. For starters, high risk loan applicants may acquire a better deal with their present mortgage lender. A person may miss or submit late credit card payments or auto loan payments, but never miss a mortgage payment. Thus, they develop a good payment history with the home loan company. In this occasion, a current lender may excuse a few credit indiscretions, approve the mortgage refinance, and offer a reasonable rate. The current lender may also waive credit report fee, appraisal, and title search, which lowers the settlement costs. On the other hand, a new lender may view the applicant as "too much of a risk," and deny the request, or charge a super high mortgage rate.


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