Top 7 Mortgage Mistakes

Obtaining a mortgage loan is one of the most important steps in buying Salt Lake Utah Homes. However, it’s not always that borrowers and lenders get the best deal in the transaction.  Something can go wrong and mortgage banking is not exempted from errors. Although it’s a highly profitable business with a great deal of leverage, mortgage bankers can still make very serious mistakes in their operation that can send them to jail and fined.  Moreover, these mistakes could further result to more restrictions in the lending industry.

Dean Harrington, on his article “The Seven Deadly Sins of Real Estate and Mortgage Lending,” wrote the seven deadly mistakes made in real estate and in mortgage industry which have been prevalent ever since.  This report has been taken from the bank examiners and internal compliance auditor’s report from the most systemic violations in the real estate lending world today.

1. Good Faith Estimate (GFE) missing information, not filled out completely, or not delivered within three days

2. Truth-in-Lending (TIL): ditto GFE, same issues

3. RESPA disclosures not in file

4. Servicing Disclosure Statement is not provided to applicants

5. HUD-1 figures do not match up with GFE

6. FHA Addendum to Application is not in file

7. Underwriting approval is not in file.

Years have passed but mortgage mistakes are still the same.  The blame must not be shouldered by the mortgage lenders alone because the borrowers are as guilty as charged.

1. Obtaining a mortgage if you don’t want to stay long.

2. Not checking — and fixing — your credit.

3. Not getting a fixed-rate mortgage.

4. Passing up an FHA loan.

5. Borrowing too much money to purchase

6. Obtaining just one qoute.

7. Not able to buy down your interest rate.

These mistakes can be really costly and disastrous which affects both the borrower, the mortgage lender and the real estate market as well. Perhaps you can’t do something about how the mortgage business is run even if the rules makes it hard for you to buy a Crosby TX homes, but it would be great if every home owner is responsible enough for educating himself of the following pitfalls before shopping around for mortgage or buying a home.