The Home Mortgage Book: Insider Information Your Banker and Broker Don't Want You to Know »

Finding and arranging the best mortgage for your dream home purchase can be a confusing and daunting experience. With so many mortgage offers to choose from, you will want to be sure that you are getting the best loan and rate for your particular circumstances. Buying a new home can be an ominous process, whether it is your first or your tenth. It is definitely not something that you do everyday, but finding that perfect mortgage loan at the best rate does not have to be a difficult task. The best defense against feeling overwhelmed is to become informed, and with the help of this new book the process will become easy. You will learn how to find the best opportunities, how to negotiate, how to get the type of mortgage loan you need; how to calculate how much you can afford, understand the true cost of a mortgage and your capacity to repay, how to pre-qualify, understand the lending process, and analyze various mortgage products. With this book, you will understand financing, budgets, needs and wants, credit reports, home-buying timeline, the process of building a house, manufactured homes, negotiating with lenders, using the Internet to get the best rates, credit reports, home-buying timeline, construction loans, manufactured homes, real estate and mortgage glossaries, setting values, home warranties, homeowners insurance, creative financing, buying with little or no money down, closing and settlement inspections, legal contracts, mortgage agreements. You will know what you can afford, which government agencies can help, considerations for veterans, calculating monthly payments, and escrow. This comprehensive resource contains a wealth of modern tips and strategies for financing and closing on your house. The author shows readers how to find out how much they re really worth, how to uncover unknown assets, and how to enhance credit ratings within six months. It provides information and suggestions on everything from no-down-payment mortgages to finding the right mortgage agent. Though you may be relatively cash-poor or have a less-than-perfect credit rating, now you can find the house you ve always wanted and acquire a favorable mortgage.

Introduction     13
Preliminary Considerations     15
Use Your Input & Logic in Creating a Plan     17
Wants Versus Needs: An Important Distinction     19
The Case for Renting     22
How Much Can You Afford?     23
PreQualification     23
PreApproval     24
Starting the Process     24
Your Credit Score     25
Improving Your Purchasing Power and Credit     26
Where & When     29
What is in a Location?     29
How to Figure Out the Best Place to Call Home     31
When to Buy     35
Type of House     37
Construction of a New Home     37
Buying an Existing Home     38
Manufactured Housing     38
Besides the Mortgage     41
The Purchase Agreement, Attorneys, Warranties, & Inspections     43
The Purchase Agreement     43
Should you Hire an Attorney?     46
How Do You Find a Good attorney?     48
New-Home Warranties     49
Existing-Home Warranties     51
Home Inspections     53
How Do you Find a Home Inspector?     56
What a Homebuyer Should Not Expect From the Inspector     61
Escrow, PMI Points, & Property Tax     63
Escrow     63
Private Mortgage Insurance     65
Property Taxes     68
Points-What are They?     69
Should You Pay points?     69
Why Not Pay Points More Often?     70
The Down Payment     71
Size of the Down Payment     72
The Mortgage     73
What is a Mortgage?     75
Mortgage History     75
Commercial Mortgages     78
Walking Through the Mortgage Process     81
Paperwork     81
First Contact     85
Processing     86
PreApproval     86
Appraisal     87
Inspections     87
Title Search and Insurance     88
Final Approval     89
Closing     89
Where to Look: Banks, Mortgage Companies, the Internet, & the Government     91
Mortgage Brokers     92
Mortgage Companies     94
Banks     95
Credit Unions     96
Private Individuals     97
Government Loans      98
Finance Company Mortgages     100
The Internet     101
Mortgage Markets & Structuring     107
Federal National Mortgage Association     109
Federal Home Loan Mortgage Corporation     110
Government National Mortgage Association     113
Mortgage Programs 101     119
Fixed-Rate Mortgages     119
Adjustable-Rate Mortgages     121
ARMs Versus Fixed-rate mortgages: Which is Best?     126
When Not to Go With an ARM     127
Interest-Only Loans     128
Just What Are These Loans?     128
Why Would You Want an Interest-Only Loan?     128
Why Go Interest-Only?     129
The Negatives of Interest-Only Loans     130
Mortgage Lenders: How to Choose     141
Your Financial Information     147
Credit Bureaus and the Scoring System     147
Errors on your Credit Report     156
Buying with Bad Credit     157
A Mortgage After Bankruptcy     159
Debt-Income Ratios     160
Income Verification Requirements     163
Information Required by Mortgage Lenders     167
Your Personal Mortgage Analysis      169
Organization of Information     171
Monthly Expense Worksheet     172
Cash/Asset Worksheet     174
Income Worksheet     175
Debt Payments Worksheet     175
Analyze & Choose Your Mortgage Options     181
30-year Fixed: The Standard     181
15-year Option     182
Hybrid Option     182
Second Loan     182
Your Personal Mortgage Journey     185
The Application Process     187
Negotiating the Perfect House     189
Fair Market Price     190
Market Value     190
Seller's Market versus Buyer's Market     190
How Much Do You Want This House?     191
Other Negotiable Factors     191
Closing Dates     191
Miscellaneous Extras     192
Repairs & Home Improvements     192
Closing the Mortgage Loan     195
From Commitment to Closing     196
The Loan Closing     198
Mistakes to Watch Out for     201
Common Mistakes to Avoid     203
Mistakes to watch out for when buying a house     203
Folding the Cost of Refinancing into the Mortgage      206
Mistakes Applicants Make From a Lender's Viewpoint     206
After the Purchase     209
Refinancing: the Basics     211
When is it Time to Refinance?     211
What are the Benefits of Refinancing?     212
Lower Your Monthly Loan Payments     212
Extra Cash at Closing     213
Build up Equity     213
Consolidate Debt     213
Switching From a Fixed-Rate Mortgage to an Adjustable-Rate one     213
Switching From an Adjustable-Rate Mortgage to a Fixed-Rate one     214
Refinancing at Renewal Time     214
Refinancing to Reduce Interest Rates     215
Refinancing for Cash     216
Refinancing for Credit     217
Prepaying Your Loan: Issues     219
Reverse Mortgages     223
Who Can Get a Reverse Mortgage?     224
How Much Money Can You Get?     225
What Does this Mean in Total Cash?     226
What if You Want to Pay the Loan Off?     227
How Much Does it Cost to Get a Reverse Mortgage?     228
Is it the Right Decision?     228
What if You Cannot Pay?     229
If You Have Reasonable Equity     229
Forbearance Agreement Option     230
You Can Sell Your House     231
If You Do Not Have Reasonable Equity     231
Second Mortgages, Helocs     233
Second Mortgages     233
Important Facts to Understand     234
Benefits of a Second Mortgage     235
How Refinancing is Different from Taking a Second Mortgage     235
Choosing Your Second Mortgage     236
Second Mortgage Versus Home Equity Loan     237
HELOC     238
HELOC Interest     238
The Advantages     239
The Risks     239
Finding a HELOC     240
Mortgage Servicing     243
Servicing     243
The Problem     243
Resources     245
Government Web sites     248
Credit Counseling Services     249
Books     250
Further Suggested Reading     250
Professional Mortgage Associations     251
Online Calculators     253
Bibliography     255
Glossary     257
Author Dedication     279
Author Biography     280
Index     281