Debunk all of the industry′s tall tales and discover the reality
of real estate financing
The mortgage game has changed dramatically, and you need to know the rules! Based on years of firsthand experience as borrowers, mortgage and real estate brokers, instructors, and industry insiders, Ralph Roberts and Chip Cummings team up to wipe out all the myths about mortgages and deliver the information you need to purchase and secure profitable long–term investments.
Here are some of the common myths that Roberts and Cummings dismantle:
You should always make the biggest down payment you can
Your main goal should be to find the lowest interest rates
Short–term investments are better than long–term investments
Your credit score alone determines whether your loan gets approved
It′s okay to save home improvements and repairs for later
Your mortgage payment will never change
Low inflation means lower appreciation
"The whole process starts by dealing with people you can trust. You can trust your first step with Chip and Ralph, as they have put together an incredible collection of truths brought to you by the biggest names in the business. Mortgage Myths tears down the wall between you and the home–buying process, exposes the real secrets to building equity, and gets you on the road to homeownership the right way!"
Eric Weinstein, CEO, Carteret Mortgage Corporation
"If you′re even just thinking about buying a house, you need this book. It even includes key information, forms, and booklets that no home buyer should be without."
Ruth Faynor, National Education Consultant for the National Association
of Mortgage Brokers (NAMB)
"Homeownership is the American dream. Too many times I′ve seen this dream go sour. We are in the business of making those dreams a reality, and Chip and Ralph have opened the doors! If you′re a first– time homebuyer, REALTOR®, or loan officer, you′ve gotta have this book."
Aaron Metaj, CEO, Apollo Mortgage Finance Corporation
Section 1. Where Do I Start?
Myth #1 – Renting is Better than Buying.
Myth #2 – I Can′t Qualify for a Loan.
Myth #3 – Only U.S. Citizens Can Qualify for a Mortgage.
Myth #4 – I Should Look at Some Houses First.
Myth #5 – I Need a Down Payment – But I Don′t Have the Funds.
Myth #6 – I Should Make the Biggest Down Payment I Can.
Myth #7 – Mortgage Companies and Loan Officers are Licensed and Regulated.
Myth #8 – Big Lenders and Major Banks are Always Better.
Myth #9 – My Best Bet is to Use a Friend (or Someone Local).
Myth #10 – I′ll Find a Better Deal on the Internet.
Myth #11 – I Can Get a Higher Return by Investing in Stocks.
Section 2. Playing "The Mortgage Game".
Myth #12 – My Main Goal is to Snag the Lowest Interest Rate.
Myth #13 – The Federal Reserve Controls Interest Rates.
Myth #14 – Stay with "Fixed Rates" – ARM′s Are Just Too Risky.
Myth #15 – A Shorter Term Always Beats a 30– or 40–Year Term.
Myth #16 – My Credit History Needs to be Perfect.
Myth #17 – My "Credit Score" Determines My Loan′s Approval.
Myth #18 – Be Conservative – Don′t Stretch Yourself.
Myth #19 – I′m Divorced or Declared Bankruptcy... So I′ll Never Qualify.
Myth #20 – Special Financing Programs Aren′t Available to Me.
Myth #21 – I Should Avoid "Mortgage Insurance".
Myth #22 – The "Good Faith Estimate" Guarantees My Closing Costs.
Myth #23 – I Have to Use the Realtor/Builder′s Loan Officer.
Section 3. Selecting the "Right" Home.
Myth #24 – I′ll Save Big Money Buying FSBO.
Myth #25 – I Have to Shop Within a Certain Price Range.
Myth #26 – Everything Is Included in the Sales Price.
Myth #27 – The Appraiser Will Specify the Value and Any Required Repairs.
Myth #28 – The Real Estate Agent Will Protect Us.
Myth #29 – Condos Are Bad Investments... and Hard to Finance.
Myth #30 – Seller Disclosures are Complete and Accurate.
Myth #31 – I Should Buy the Biggest House at a Bargain Price.
Myth #32 – I Should Always Use an Attorney.
Myth #33 – I Don′t Need an Inspection – It Looks Great to Me!
Myth #34 – I′ve Seen Enough.. I′ve Found the Home I Love!
Myth #35 – It′s Okay to Buy – This Area is Booming .
Myth #36 – All Sales Agreements and EMD Requirements Are Standard.
Myth #37 – I Can′t Withdraw My Offer It′s Too Late.
Myth #38 – Beware of Foreclosures – They′re a Headache.
Myth #39 – I Make Money When I Sell Not When I Buy.
Myth #40 – My Tenants Will Finance My Investment Property.
Section 4. The Mortgage Process.
Myth #41 – The Loan Process Takes a Long Time.
Myth #42 – All Applications and Disclosure Forms Are Standard.
Myth #43 – We re Approved: Our Worries Are Over!
Myth #44 – My Interest Rate Is Locked In AND Guaranteed.
Myth #45 – A Pre–approval is a Pre–Approval.
Myth #46 – I Have to Let My Lender Escrow Taxes and Insurance.
Myth #47 – I′m Self–Employed – Getting Approved Will Be Tough.
Myth #48 – The House Needs Repairs – We′ll Do Them Later.
Myth #49 – Personal ′Profiling" Is Part of the Approval Process.
Section 5. It′s "Closing" Time.
Myth #50 – Someone Else Decides the Closing Date and Location.
Myth #51 – Why Do I Need "Title Insurance"... I Can′t Even Select the Provider.
Myth #52 – It′s Cheaper to Close at the End of the Month.
Myth #53 – I Can′t Review Documents in Advance.
Myth #54 – The Seller′s Home Warranty Protects Us.
Myth #55 – The House Will Be in "Move–In" Condition.
Myth #56 – It′s All Triple–Checked and Ready to Go!
Myth #57 – I Need Homeowners Insurance to Cover the Entire Purchase Price.
Myth #58 – I Need Credit Life Insurance to Protect Myself.
Myth #59 – My House Payment Will Never Change.
Section 6. The Refinance Game.
Myth #60 – Never Refinance Until the Rate is 2% Lower.
Myth #61 – I Should Never Refinance Into a Higher Interest Rate.
Myth #62 – I′m Not Allowed to Pay Extra – There′s a Pre–Payment Penalty.
Myth #63 – Reverse Mortgages Are a Bad Idea.
Myth #64 – My Terms May Change if the Loan is Sold.
Myth #66 – Refinancing: Better Than Home Equity or Construction Loans.
Myth #67 – Low Inflation Means Low Appreciation.
Myth #68 – I Have to Live There at Least 3 Years to Break Even.
Myth #69 – Refinancing is a Cheap Way to Get Cash.
Myth #70 – My Escrows Are Already Set Up.
Section 7. Short of Cash? Creative Financing Solutions.
Myth #71 – I Can′t Use a Gift for a Down Payment.
Myth #72 – A Bi–Weekly Mortgage Simply Changes My Payment Schedule.
Myth #73 – Seller Financing is Risky and Expensive.
Myth #74 – Government Loans Are Only for Low–Income Borrowers.
Myth #75 – No Bank Will Finance Us.
Myth #76 – A "Lease Option" Plan is Always a Bad Idea.
Myth #77 – I Can′t Make My Payments... So I′ll Lose My Home.
Required Application Disclosures.
Mortgage Application – Form 1003.
Sample "Good Faith Estimate".
Sample "Truth in Lending" Disclosure.
Sample HUD–1 Closing Statement.
Home Financing Checklist.
Personal Qualification Form.
Mortgage Payment Calculator.
National/State Associations and Regulatory Agencies.
Homebuyer Education Classes.
Other Website Resources.
Terms You Need To Know.