BFCSA PROVIDES WARNINGS TO THOSE CONTEMPLATING APPLYING FOR A MORTGAGE LOAN FROM A BANK:
BFCSA Banking & Finance Consumers Support Association We have to alert all those contemplating asking banks or other lenders for a mortgage to demand a copy of the LAF the moment you sign!!!!! Then ask the sellers (managers or brokers) if they will be using a secret bank calculator to write down "protected exaggerated incomes?" They will say yes and then YOU say NO to the Loan.
Write in your handwriting on the LAF "Loan applied for on condition that the correct income be used as upon the income evidence provided."
Any other tips from members for persons about to apply for a mortgage loan?
What about NO to compulsory credit card.
Write a letter to CEO of Bank and post signed the same day as the LAF and headed: "MY UNDERSTANDING OF THIS LOAN APPLICATION...."Also ask IS THIS AN INTEREST ONLY LOAN. Does this means I would never ever own my house that the debt remains the same for the next 30 years?
Tell the CEO to ensure "my loan is P & I." If seller or CEO response suggest "we cannot do the loan this way...." Then ask Seller and CEO HOW MUCH DEPOSIT WOULD I NEED to enable us to get a loan of say $250,000 and what NETT INCOME less cost of living...would be the minimum for what amount of borrowing?"
This is all about ASKING the right questions and the sellers are trained not to suggest too much detail....................
In most cases the sellers will not know the answers. That is why you will need to confirm with the CEO of the Bank.
You say: In order to make an informed decision, I need to be fully informed of details and risks and hence, I need answers to these questions.
If you have doubts call me Denise Brailey 0401 642 344
Facebook/BFCSA
Twitter: @DeniseBrailey