Don’t Get the Shaft on Your Next Home Loan

By Ed Hoffman

Last week, I opened my radio show on AM590 with audio from one of my favorite holiday comedies, “National Lampoon’s Christmas Vacation.” The clip we played was the scene where young Ruby Sue, the daughter of rag-tag Cousin Eddie, tells Clark Griswold that Santa Claus didn’t bring them “squat” for Christmas last year. “We didn’t do nothin’ wrong, and we still got the shaft,” she says. In response, Uncle Clark takes it upon himself to be Santa Claus to his cousin’s family that year.

As your hometown direct mortgage lender in the Inland Empire, I’d like to play the role of Uncle Clark for a moment, and offer my help to any readers who may be getting ready to buy a house in 2015. Whether you choose our mortgage services at Wholesale Capital Corporation or not, I want to take the next couple of weeks as the year winds down to help you avoid getting the shaft – at least when it comes to your next home loan.

Here’s my first tip: Don’t get your mortgage loan from a big bank! Yes, even if it’s your own bank – the one you’ve been with for years, and the one that makes you feel warm and cozy inside because they take such good care of you. That may be the case for your personal bank account, but your mortgage loan will be handled by an entirely different department.

Here’s what I know as a long-time real estate investor: When I’m selling a house that I own and I get an offer from a buyer using a big, nationally-known bank as their mortgage servicer, I throw out the offer immediately. This actually only applies to two specific banks, which I won’t name here; if you’re interested in hearing their names, download the podcast of my December 13 show at www.EdHoffman.net.

Why don’t I entertain offers from buyers working with these banks? Three reasons: First, their appraisers are going to lowball the value of the home, which will sour its value for any FHA buyer of that home for years to come. Second, the loan will take forever to close – and third, it has a good chance of falling through anyway. If you want to go where you’re actually going to get into the house, take it from me: That place is not your bank. At my company, we ensure that once we approve you, you’re in the house. Let me clarify: Short of you dying or quitting your job, you’re in the house.

Here’s my next tip: The only thing that matters is what makes your wife happy. Happy wife, happy life. That one’s short and sweet, as most nuggets of wisdom are. Next week, I’ll share with you a great down payment tip that can get you into your next house for next to nothing – yes, seriously! Whether your “drive around to look at Christmas lights” tradition is in Chino, Upland, Riverside, Redlands, Yucaipa or some yet-undiscovered neighborhood, you can find a home this program will work for – but as always, there’s a catch. I’ll tell you more about it next week!

Ed Hoffman is the host of the Main Event on AM590, which airs Saturday at 9:30 AM and Sunday at 4:00 PM. Follow him on Twitter @EdHoffman, and like him on Facebook by searching The Main Event AM590.