Saturday, August 16, 2008

Bad credit mortgage. Does it exist still?

Here are some facts:

The majority of people underestimate the strength of their credit.
The majority of people think that a FICO score in the 500's disqualifies them from getting a good conventional mortgage which leaves them as an easy pray to a subprime lender or a hard money lender.

The reality is that the subprime meltdown is the best thing that could have happened to low FICO score borrowers. Why you ask?

My name is Mehdi Cherkaoui and I operate BrokerPolice.com.

I can tell you that the fall of subprime lenders put the government in a position to step up through FHA(federal housing administration) and offer most bad credit people a shot at the american dream with great terms and low interest rates. These very same people would have been "abused" by subprime lenders offering ridiculously high rates and fees in addition to adjustable rate mortgages. Greedy lenders and unscrupulous brokers combined committed what I like to call "mortgage rape".


One issue rises in the midst of this blessing. How do you keep mortagge brokers from taking advantage of FHA programs and charging low FICO score borrowers, eager to get a home and still skeptical about their unexpected approval, huge fees and high rates.

The answer is HOMEWORK, HOMEWORK. As a first time home buyer there is a lot of research you need to do and help you need to get.
You can also seek the help of a professional mortgage consulting service independent from your broker or lender that can tell you if your getting the right deal. at BrokerPolice.com, we do just that.
On a daily basis, Clients send me good faith estimates loaded with unecessary fees and higher interest rate than they actually qualify for. We write an analysis and give them the best second opinion.
If you have a friend or a relative who is an expert in mortgages, they can help you as well.

Visit us at BrokerPolice.com for more info.

Remember, just because you have a lower score that most doesn't mean you should pay outrageous fees and high rates. I guarantee you that fact.

Can you really trust your mortgage broker or lender?

So you made the big decision. You decided that renting is not for you any longer and decided to become a home owner.
Ahh the possibilities...No more landlords. No more throwing money away. Say hello to BBQ in the back yard, house parties and many other advantages of realizing the American dream.
But before you enjoy all of that, and unless you saved up enough money to pay cash for your slice of real estate, You'll need to meet with a lender or mortgage broker.

See what few people know is your lender or broker is NOT you adviser. It is literally impossible for your mortgage broker to look out for your best interest and still make a living.

My name is Mehdi Cherkaoui and I operate BrokerPolice.com.

A lot of my clients are first or second time home buyers. They are like most Americans fairly oblivious to what rate they qualify for, what closing costs they should pay what program they should opt for etc...

The recent mortgage mess has been partly caused by the combination of greedy brokers and not-so- knowledgeable borrowers.
These brokers pushed for programs that only benefit the size of their pockets.

I have seen good faith estimates emailed to me by brokerpolice.com members that boggle my mind. They contain stratosphericly high origination fees, points broker fees....In addition to inflated interest rates down right criminal mortgage terms.

It is crucial to do enough homework and seek professional help like mortgage consultation services that can steer you towards the right mortgage.

Good mortgage products are still out there. As a matter of fact FHA has made it even easier than before to obtain a great mortgage. FHA basically picked up where subprime lenders left off only with much much better interest rates and mortgage programs.

So once again do enough homework get the best mortgage consultation you can, interview mortgage brokers, ask for a good faith estimate and seek help from a mortgage watchdog especially if you are a first time home buyer. You'll save thousands on your next mortgage.

Please visit us at www.brokerpolice.com for more.
Good luck.