The Top 10 Do's & Don'ts When Financing Or Refinancing Your Home

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The National Mortgage Complaint Center has compiled a top 10 list of do's and don'ts for all US homeowners about to refinance their home or about to finance the purchase of a home. This list has been designed to save homeowners thousands of dollars in needless lender fees and or associated costs.

Because of slowing home financing and or refinancing the National Mortgage Complaint Center has just anounced its top 10 do's and don't for US consumers about to fiance or refinance their home as a guide on how to, or how not to get a mortgage/refinace your home. Accoring to Thomas Martin, President of the National Mortgage Complaint Center, "mortgage lenders are seeing fewer customers and because of this, many mortgage lenders will use every trick in the book to over-charge or gouge with US homeowners when financing or refinancing their homes".

The Top 5 Do's Are:

1. Check out the mortgage lender you are about to do business with. Check with the local Better Business Bureau and check the rip-off report on line for any negative reports or postings about the lender.

2. Have the mortgage lender give you a quote to include interest rate and fees associated with the mortgage, before running your credit report.This will allow you to get a reasonable idea of interest rates and fees before actually making formal application. Borrower's should be honest with the lender about what they think their credit is. You should not allow the lender to obtain their credit report and should not pay any up-front fees for the quotes.

3. Once you make formal application for a mortgage (using the Federal 10-03 Application Form), inform the lender that they are required by Federal Law to provide a Truth in Lending Statement and a Good Faith Estimate within three business days of making application for the mortgage.

4. Once you get the Good Faith Estimate and Truth in Lending Statement, have the lender put in writing if they are getting a kick-back for increasing the homeowners interest rate over the best interest available also known as a "Yield Spread Premium". According to Thomas Martin "yield spread premiums are the number one source of over-charges in the mortgage industry and consumers need to understand that if the lender gets a yield spread kick-back, the borrower/consumer will end up with a higher monthly mortgage payment". The lender should also confirm that there will not be a pre-payment penalty associated with the mortgage. The homeowner should then require the lender to put these two items in writing via a formal letter or email. If the lender is unwilling to make these two disclosures, Thomas Martin strongly suggests the borrower "find another mortgage lender".

5. Any one about to refinance or finance a home mortgage should have the National Mortgage Complaint Center review and inspect the mortgage documents before the closing of the mortgage transaction.This mortgage document review and inspection service includes a narrative report that details possible over charges and possible unjustifiable fees or interest rates. If any consumer wants the name of an honest mortgage lender doing business in their state or wants a mortgage document review, feel free to call 866-714-6466.

The Top 5 Don'ts Are:

1. Use a reputable local or reputable national mortgage firm. Do not use any firm associated with a slick TV ad that says something to the effect, "let 3000 mortgage loan officers beat each other to death for your business". According to Martin, President of the National Mortgage Complaint Center, "these middlemen frequently get huge fees for sending the borrower to the most expensive lenders, with the net result being, you end up paying more money".

2. Do not respond to internet mortgage companies or internet mortgage solicitations. According to Martin, "I see nothing but trouble in dealing with anyone who you cannot see or you cannot check out". Martin says; " some of the worst mortgage deals I have ever seen came from the internet or via internet solicitations".

3. If you are buying a new home from a Regional or National Homebuilder Do Not Use Their Mortgage Product. According to Thomas Martin; " Regional or National Homebuilders gouge and over-charge millions of unsuspecting US homebuyers every year by offering phoney bonuses or other less than honest gimmicks to keep the mortgage transaction in-house". Martin explained; "most home builders offering mortgage products are in fact mortgage bankers, and as such not required to discolse to the consumer that they are in most cases getting huge kick-backs for increasing the interest rate of the borrower over the best rates available (also known as yield spread premiums).

4. You should not allow yourself to be pressured or forced to close before they completely understand the mortgage, its fees and the specifics of their proposed mortgage.

5. Martin advises all consumers to stay away from any or all mortgage products that have a starting interest rate of 1% to 2%. According to Martin; "these scam mortgage devices could be the un-doing of the entire mortgage market because most consumers do not understand that the rate will only stay at 1% or 2% for a month or two before the interest rate and monthly mortgage payment start going up". "If you are on a fixed income and or barely qualify for a product like this; do not go through with the transaction because in a short time they may not be able to make their monthly mortgage payments". Martin also warned about negative amatorized mortgage products because;" why not just pay rent, because thats all you are doing with this mortgage product".

Aside from the Top 10 consumer tips on home loans or mortgages Martin expressed the following great concern for the 2006 US Real Estate Market." 2006 will be a flat real estate market and or a real estate market that goes south (the real estate bubble) because of over-inflated home values that are not supported in their market. Martin cites as his number one cause for alarm; home appraisers who for years, have been forced by real estate agents, mortgage lenders or home builders to come-up with real estate appraisal vales that are not realistic or that are not based on reality. Martin calls this "the train wreck, he has been predicting for over a year". The appraisers in many cases either have to come up with a make believe home value dictated by the real estate agent, the mortgage lender or the builder or the real estate agent, mortgage lender or home builder will find another real estate appraiser who will. "Why call it an appraisal if the appraiser is forced to come up with a pre-ordained value", according to Martin the National Mortgage Complaint Center's President.

Any homeowner or consumer wishing to finance or refinance a home is welcome to contact the National Mortgage Complaint Center any time. Our web site is at Http://National Mortgage Complaint Center.Com/ and our toll free number is 866-714-6466. The National Mortgage Complaint Center is America's number one source for consumer mortgage inspections designed to save borrowers money before they close on a home loan. The National Mortgage Complaint Center also acts as a consultant to consumers wishing to learn more about honest mortgage lenders doing business in their state.


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