Mortgage secrets from a real estate insider

If you are a home buyer, homeowner or residential realestate sales agent, there should be a law requiring you to read David Reed’snew mortgage insider secrets book, “Who Says You Can’t Buy a Home?”Written by an experienced mortgage banker, this new book reveals facts mostmortgage lenders don’t want borrowers to know because such secrets harm lenderprofits.

Reed is on the side of home loan borrowers as he shares howmortgage lenders view home loan originations. The book’s theme is, “Anyonewith steady income, no matter how bad the credit rating, or even with nocredit, can find a mortgage to buy a home.”

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The author then over-delivers on his promise by explainingvirtually every mortgage lender trick that can hurt borrowers, along withexplanations of how to overcome borrower obstacles.

A book reviewer is supposed to remain unenthusiastic aboutbooks reviewed, but that is impossible after reading this superb new “tellall” book. Reed explains virtually every home loan topic that beginnerhome buyers, experienced homeowners and residential real estate sales agentscan possibly raise.

The author anticipates issues that most home buyers mightnot even consider, such as how to borrow from their 401k, IRA and other assetsto buy a home.

The heavy emphasis is on buying a home with little or nocash from the borrower’s pocket. If the home buyer can pay a 5 percent downpayment, Reed then explains how to get better terms and even how to avoid thedreaded private mortgage insurance (PMI) expensive premiums.

Toward the book’s conclusion, the chapters delve into creditreports, Fair Isaac Corp. (FICO) credit scores, and how to overcome creditblemishes. The author explains what is important to mortgage lenders and whatis unimportant, such as recent credit inquiries. He also places considerableemphasis on how to overcome bankruptcy, foreclosure, late pay, and other creditproblems.

Throughout the book, Reed uses many examples from hisextensive mortgage lending experiences. To illustrate, he tells of an inquirerwho refused to let him check her credit report because she feared she had badcredit. Finally, when she found a house she really wanted to buy, she let Reedcheck her credit report and all he found was a few late payments and anexcellent credit score.

The big problem with this book is that the format sometimesmakes for tough reading, especially when there are lots of boring numbers usedto illustrate topics. The publisher could have used a more creative design tomake for easier reading to format the important topics the author explains.There’s no problem with the valuable content, just the dull way it ispresented.

The book’s best and most profitable chapter reveals mortgagelender “junk” or “garbage” fees. Frankly, I was shocked amortgage banker would be so honest.

Reed explains which fees are non-negotiable and which caneasily be negotiated away by borrowers. Then he reveals the high income thebest mortgage lenders earn and why when a borrower questions a junk or garbagefee it hurts the lender’s annual income.

Chapter topics include: “Where to Find Mortgages”;”The Key People in Your Approval Process”; “Types of MortgageLoans”; “The Mortgage Application Process”; “Debt Ratiosand How They’re Calculated”; “Loan Documentation: Proving YourIncome”; “Loan Fraud”; “Buying with No Money Down”;”Government Programs with Zero Money Down”; “ConventionalZero-Down Loan Programs”; “Borrowing from a 401k, an IRA, or OtherAssets”; “Seller Carry, Lease-Purchase, Wraps, and LandContracts”; “What’s in a Credit Report?” “Finding the BestSubprime Loan”; and “Closing Costs.”

Rarely do I encounter a real estate book that cannot be recommendedtoo highly. This is one of those gems. Author Reed will probably be banned forlife from mortgage lender meetings for revealing home loan secrets. But readersof his new book will benefit by saving on their home loans and obtaining thebest possible terms. On my scale of one to 10, this superb new book rates anoff-the-chart 12.

“Who Says You Can’t Buy a Home?” by David Reed(AMACOM, New York), 2006, $17.95, 182 pages; available in stock or by specialorder at local bookstores, public libraries, and

(For more information on Bob Bruss publications, visit his
Real Estate Center

Copyright 2006 Inman News

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