Homebuyers Beware: Who's Ripping You Off Now?: What You Must Know About the New Rules of Mortgage and Credit »

Carolyn Warren has been a mortgage industry insider for more than twelve years. She worked in both retail and wholesale lending for some of the largest national lenders including Full Spectrum Lending/Countrywide Home Loans, Ameriquest, Green Tree Financial/Conseco, and First Franklin wholesale lending.

Carolyn Warren is the author of the best-selling Mortgage Rip-Offs and Money Savers, a book that became The Washington Post’s August 2008 Book Club pick-of-the-month and earned reviews in publications ranging from The Boston Globe to the Orange County Register, The Seattle Times to the Arizona Republic and San Diego Union-Tribune. She has appeared on many radio talk shows, including Bob Brinker’s national Money Talk and The Gil Rose Show in San Francisco.

Currently, she is working as a broker/banker and is the owner of two Web sites, www.AskCarolynWarren.com and www.Mortgage-Helper.com. She lives in Seattle with her husband and Himalayan cat.

“Carolyn Warren is my go-to expert for mortgage industry information. She not only helps you avoid rip-offs, she helps you know what questions to ask and how to ask them. Full of tips, scripts, and sample letters, Homebuyers Beware is an extremely valuable book that I recommend to all my readers!”

—Alison Rogers, “Ask the Agent” columnist, CBS Moneywatch.com

“In this fun-to-read volume, mortgage industry insider Carolyn Warren tells you what real estate cheats and mortgage scammers do NOT want you to know: the tricks, the deceptions, and the outright frauds that would otherwise add thousands, maybe tens of thousands of dollars to your mortgage. Get it. Read it. And take it to the mortgage broker with you. You’ll be glad you did!”

—Clayton Makepeace, The Total Package, Makepeacetotalpackage.com

“In Homebuyers Beware, Carolyn Warren directs her keen eye at the mortgage and credit markets in the wake of the housing bubble. With an insider’s knowledge, plenty of interesting anecdotes, and helpful reference information, Warren is a cheerful teacher leading readers down the path to homeownership and pointing out pitfalls along the way.”

—Ben Meyer, InternetBrands.com

Get the Best Mortgage Deal in Today’s Real Estate Markets—and Avoid a Whole New Generation of Scams!

• Exposes new secrets, lies, and scams the mortgage industry doesn’t want you to know about

• Reveals how to save thousands right now by finding the best rate and negotiating the best deal

• Guides you step-by-step through improving your credit and preparing to buy, even if you’ve faced foreclosure

Everything you thought you knew about financing a house has changed. Your future depends on knowing today’s mortgage and credit realities: Relying on older information could cost you a fortune or keep you from buying a house altogether. In Homebuyers Beware, Carolyn Warren reveals the new realities of home financing and shows exactly how to take advantage of them, whether you’re buying your first home, refinancing, struggling with imperfect credit, or planning to invest in real estate.

Homebuyers Beware reveals new secrets homebuyers simply can’t afford to miss and exposes new scams that target today’s eager consumers—including new loans that look great on paper but are every bit as dangerous as yesterday’s subprimes. Unlike other mortgage guides, this book fully reflects today’s radically new mortgage requirements, in addition to the latest federal housing legislation and how to improve your credit rating. From its up-to-the-minute guidance on real estate negotiation to its powerful tips on getting lower interest rates and avoiding bogus junk fees, this may be the most valuable book you ever read!

• Who’s ripping you off now
  High-tech “smoke and mirrors” that can trick you into overpaying

• Quick, easy, powerful ways to fix your credit
  Innovative ways to raise your credit score or recover from a foreclosure or short sale

• Uncovering the costly secrets of the Yield Spread Premium
  Get past your banker’s lies, learn the truth, and save a fortune

• The latest laws and credit rules and what they mean to you
  So-called anti-predatory laws and codes of conduct actually hurt homebuyers. Learn what you can do to protect yourself from big corporation greed.

• New plans for recovering from bad credit, foreclosures, or short sales
  Step-by-step techniques that erase bad credit and raise your credit score faster than you ever thought possible. Learn how to recover from a foreclosure

Introduction New Kip-Offs 1

My Credentials 5

What's Coming Up 6

Easy Reference Guide: Terms to Know 7

Chapter 1 Getting the World's Cheapest Loan 11

Save Time and Money by Learning from This True Story 11

Make Your Experience Easier, Smoother, and Better 18

Coming Up Next 18

Chapter 2 What's New with Credit 19

Are You Getting Ripped Off By Your Own Credit Score? 21

How Lenders Rate Credit 23

Beware of Bogus Credit Scores 24

10 Common Misconceptions About Credit Scoring 25

How Your Score Compares with Others' 27

Coming Up Next 28

Endnotes 28

Chapter 3 Quick, Easy Ways to Raise Your Credit Score 29

Nine Ways to Raise Your Score, Quick and Easy 30

If You Have No Credit History 36

Get More Respect with an 800 Score 37

Coming Up Next 38

Chapter 4 Aggressive, Innovative Ways to Fix Credit 39

Innovative Method #1: Use Charm to Get a Goodwill Agreement 41

Innovative Method #2: Demand the Removal of Old Collections and Interest Charges 43

Aggressive Method #3: Insist They Stand by Their Original Agreement 46

Coming Up Next 50

Chapter 5 Five-Step Plan for People Working Toward Buying a Home 51

Five Fun, Easy Steps to Home Ownership 51

Coming Up Next 55

Chapter 6 How to Recover from a Foreclosure or Short Sale 57

How Long After a Foreclosure or Short Sale Until You Can Buy Again? 59

Getting an Exception for Extenuating Circumstances 60

The Great American Comeback 60

Coming Up Next 61

Endnotes 61

Chapter 7 Beware of Privacy Pirates! 63

How to Protect Yourself from ID Rip-Off Artists 64

Five Proactive Steps to Avoid Being a Victim of ID Theft 64

Five Steps You Must Take If Your ID Is Stolen 66

What to Do IfYour ID Is Lost 68

You Can't Be Too Careful 68

Coming Up Next 68

Chapter 8 Don't Buy a House Until You Read This 69

Gain an Uncommon Advantage Over Your Competitors 70

Further Explanation About the Earnest Money Deposit 73

Coming Up Next 74

Chapter 9 When Is the Best Time to Buy a Home? 75

When Is It a Good Time to Buy? 75

Will You Get a Cheaper Price by Waiting? 78

The Folly of "Procrastination 78

Coming Up Next 80

Chapter 10 The Loan Process in Ten Easy Steps 81

Carolyn's Ten-Step Loan Process Checklist 81

Coming Up Next 86

Chapter 11 Choose the Right Loan for YOU 87

How Much Down Payment Is Required? 87

Which Loan Program Is Best for You? 88

Coming Up Next 96

Chapter 12 Broker, Banker, or Direct Lender? 97

Find Your Mortgage Star 98

What About Credit Unions? 100

Coming Up Next 101

Chapter 13 How to Shop for a Loan Without Getting Tricked 103

Bad Advice Disguised as a Helpful Tip 103

How to Find a Mortgage Star 106

How to Handle a "Forgotten" Fee 108

Why You Need the Good Faith Estimate Before Making a Decision 109

Coming Up Next 111

Chapter 14 The Truth About Fees 113

Why "No Fees" Can Cost You More 116

Do You Really Have to Pay That? 117

Is This a Good Faith Estimate or a Joke? 128

Closing Costs That Are Not Fees 131

Coming Up Next 134

Chapter 15 Five Things You Need to Know About YSP 135

What Is Yield Spread Premium? 136

Is YSP a Rip-Off to Borrowers? 136

Lenders That Don't Have YSP 137

Five Important Principles to Understanding YSP 139

Coming Up Next 143

Chapter 16 How the YSP Controversy Affects You 145

Instructions to Lie 147

The Fight Is Coming to Blows 148

Coming Up Next 149

Chapter 17 The Good Faith Estimate: Tricks and Traps 151

Seven Ways They Can Trick You on the Good Faith Estimate 157

The New Good Faith Estimate Designed by HUD 160

Why the New GFE Fails Borrowers 161

Coming Up Next 163

Chapter 18 When to Lock in Your Rate, When to Float 165

To Avoid Being Victim of a Changing Market, Lock In 165

Float-Down Option 166

Switching Lenders 166

Three Ways to Know When to Lock 167

How Long Is a Rate Lock? 169

Warning: Get It in Writing 170

When Rates Spike Unexpectedly 171

Coming Up Next 172

Chapter 19 What Does It Take to Get Approved? 173

Down Payment Requirements 175

Asset Requirements 176

Credit Score Requirements 176

Adverse Credit 177

Income Requirements 177

Eligible Borrowers 178

Coming Up Next 179

Chapter 20 Why You Need Agent Representation 181

For Homebuyers 183

For Home Sellers 193

How to Find a Real Estate Star 198

Coming Up Next 198

Endnotes 198

Chapter 21 Ten Things You Must Know Before You Refinance 199

Test Your Refinance I.Q 199

Answers with Explanation 200

How Did You Do? 204

Coming Up Next 205

Chapter 22 Is Refinancing a Good Financial Move? 207

Six Questions to Ask When Considering a Refinance 207

How Much Will It Cost You to Save Money? 209

Skipping Ahead to Save Money 210

Getting Out of an Adjustable Rate or an Interest Only Loan 210

Reaching a Conclusion 210

Coming Up Next 211

Chapter 23 I'm Glad You Asked: Refinancing Q and A 213

Coming Up Next 216

Chapter 24 Unique Loans, Unique Situations 217

No Income Verification Loan 218

Home Equity Line of Credit (HELOC) 218

Second Home or Vacation Home 220

Duplex or Multiplex Property 220

Condominium or Townhome 220

Kiddie Condo Loan 221

Reverse Mortgage for Seniors 221

Coming Up Next 224

Chapter 25 Beware of Radio Ads 225

Twisted Truth 225

Chosen by the Better Business Bureau-So What! 226

The Loan "They Don't Want You to Know About" 227

Bogus Rate Quotes 227

"We Give the Best Service" 228

Coming Up Next 228

Chapter 26 Stop Clicking on Mortgage Ads 229

Three Reasons the "Compete Slogan" Is Deceptive 229

Jumping Girls and Rolling Eyeballs: What's Behind Those Action Ads 231

Why Advertised Rates Are Phony 232

Coming Up Next 232

Chapter 27 Deception Exposed 233

"Free" Appraisal Report 233

No Points 234

No-Cost Mortgage 235

Equity Acceleration Programs 236

Coming Up Next 239

Chapter 28 Watch Out for the Ten-Million-Dollar Mortgage Man (and His Cohorts) 241

Debt Today, Gone Tomorrow 243

Coming Up Next 245

Chapter 29 Home Value Rip-Offs 247

It Could Happen to You 249

Read HVCC 250

Coming Up Next 250

Chapter 30 Final Thoughts 251

A Note from the Publisher 252

Index 255