C Tann-Starr's Outside Blog


First Time Homebuyer Tips : Summary - Red Flags to be aware of -- Part 5 of 5


My friend Jeff Belonger was kind enough to make this available for a re-blog. If you want to read the entire series, please feel free to select the links embedded in his post. If you do not subscribe to his blog, you may want to reconsider your position. I promise you will not be disappointed.




list of red flags

Buying a new home or refinancing your mortgage - How many of you are excited about buying a new home, yet are worried at the same time that it won't fall apart at the end because of horror stories that you have heard in the past. I am not here to scare you, this doesn't happen often, that real estate transactions fall apart last minute. But it does happen more often than many think. Overall, it just comes done to the loan officer or realtor giving you the basic education that comes with real estate and mortgages.

For many of you that read my blogs on a weekly basis, I have like 3 to 4 major pet peeves when it comes to loan officers and what they should be explaining to you in the beginning. I have even mentioned some of these throughout this first time homebuyer series, because it's extremely important that you pay attention to these types of red flags. Here are the top 3 that you should concern yourself with.



red flags

Good Faith Estimates - So many will agree with me on this one, that there are times that a borrower doesn't get a copy of their good faith estimate, no matter if they are purchasing or refinancing. There is a law that requires that you receive a Good Faith Estimate from the time of application up to the 3rd day after application. An important FYI - Check through your paper work when you have the application in front of you. In many cases, it's there, but the loan officer didn't make a copy for you. If this is the case, make a copy yourself. Please read:

Know how to read a good faith estimate properly and what to look for.


Another red flag. When you actually shop for an interest rate, many loan officers will just give you a rate, but not explain to you that it's probably based on a 30 day lock. It's doesn't matter if you are shopping for a mortgage or decided to go with that loan officer. Please read the section locking in mortgage interest rates.

Which leads me to a major pet peeve of mine. Too many people focus on interest rates and allow themselves to get sucked up into the hype. Your loan officer's focus should be on what kind of mortgage payment that you are comfortable with and not selling you rate right from the get go. Yes, many of us have different ways of selling. But you can't get the lower rate unless you have more money to buy it down. Something a true mortgage professional will share with you and not ignore.  Please read : Payment vs Rate   And when shopping for a mortgage, don't just shop APR (Annual Percentage Rate). Please read : APR vs Interest Rate


Red Flag : The bag & tagged concept :  As you shopped for a realtor or a loan officer, this person was always getting back to you. Now you have signed a listing agreement, a buyers agreement, or the loan application and they do not get back to you right away or in many cases, it seems like forever. Hence that they got you into the door, bagged & tagged you as a solid client. Now you need to hunt them down per se, calling and e-mailing. Or that they use excuses such as, "I am just very busy right now". Time management is one of the hardest things for any person to become successful with. You need to be organized to a certain degree. Just keep in mind, do you think that your transaction will go smoothly at the very end, if this is like this in the beginning? The probability might not be good.  Please read more about these types of red flags here .....




Lastly, the bait & switch method. Beware, just because the loan officer put down a rate, promised you over the phone, or gave it to you on a good faith estimate, doesn't mean that it's guarantee. Even if they use the rate guarantee. If you want to shop for a rate properly, you need to do it all in the same day, because rates can change daily. Secondly, you want to get a good faith estimate from each loan officer.


moving van

Talking to not only a successful realtor and or loan officer will get your deal closed without major pain, but speaking with a professional, caring, & knowledgable realtor and loan officer will usually solidfy your deal also. Again, I don't have a problem with consumers shopping, it's the lack of information that is supplied to them, keeping them in the dark. Once you find out certain things that you should have been told, why do some of you still stay with that person?  Yes, I believe in second chances, but buying a home and or refinancing is one of the largest transactions in your lifetime. And if something major has been left out of the process, and sometimes more than once, why give that second chance?  Just words to think about.

For two more tips in regards to buying and refinancing, please read :


Good Luck to All !!!!



The First Time Homebuyer Series :


Understanding if you should rent or buy :



 Buying Tips :

  • FHA 203-k Loans



- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- Mortgages -


Experience & Knowledge at its BEST !!!



For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2008-2009 Tax Credit for First Time Homebuyers : 2008 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!

Copyright © 2009 by Jeff Belonger

Disclaimer: Any comments and contributions provided on ActiveRain.com (or other electronic or print media) does not establish an agency relationship with any third party. Blog posts are intended to be informational only. Please be advised that real estate practices vary in regions and from state to state and market to market. The information contained herein does not constitute legal advice. All parties in need of legal, accounting, tax, or real estate guidance are directed to consult with the licensed professional of their choice. Please seek specific guidance from a retained professional in the specific field(s) required to service your interests. I and/or team blog writers make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this web site and its associated sites inclusive of but not limited to CarolynTannStarr.com MySpace/TannStarr 46486 NY Working Moms Examiner ActiveRain Group Club Chaos ClubChaosAgents.com CyberMinions.net CTannStarr Outside Blog CTannStarr Localism Blog TannStarr.net UberMental.com

© Carolyn Tann-Starr, 2008-2015. Unauthorized use and/or duplication of this material without express and written permission from the re-blog authors (when appropriate)and Carolyn Tann-Starr is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Carolyn Tann-Starr, (the re-blog authors when appropriate) and Wordy C's Blog with appropriate and specific direction to the original content.


Carolyn Tann-Starr Outside Blog Outside Blog Minion Report on Facebook Carolyn Tann-Starr on Blogger  CTannStarr on Twitter Tann Starr on YouTube TannStarr.net

Tann Starr on iTunes

Tann Starr on IMDb

Kim Harrison  Vicki Pettersson  Jocelynn Drake  Jaye Wells  Amy DeZellar  Lynn Rush  Jeannie Holmes

Ward Nasse Gallery

Kendall Grey  Jeaniene Frost  Faith Hunter  Stacia Kane  Sherry Soule

Alicia Anderson: Touched By People Places and Things


Tann Starr on Amazon.com

Life With Wee People

Outside Blog Minion Report


Ask me something...

Tann Starr on Jango Music

Tann Starr on Blip.fm

Felix Lipov, Official Photographer, Ambassadors of Chaos




Comment balloon 5 commentsC Tann-Starr • February 02 2009 05:36AM


C - thanks for re-blogging this and providing all the links. Yet another bookmark for me.

Posted by Mike Saunders (Lanier Partners) almost 12 years ago

Jeff has a lot of good info, nice thing about a re-blog is we as agents can then share with our readers his pearls of wisdom, gotta love a win-win.  I need to go back and do all five myself.  be good  cw

Posted by Cheryl Willis, MO Broker - Mt Vernon, Monett, Aurora, Barry & Law (RE/MAX Solutions- OZARK MISSOURI) almost 12 years ago

C - thanks for the re-blog. I will check out this series. Seems like some seriously good info.

Posted by Tanya Venable, SEO, Mobile SEO, and Internet Marketing Consultant almost 12 years ago

C- I love Jeff!  He is one of my faves!  And, he makes the information so available to understand for buyers!  He is so personable, too.  Jeff, when you read this, thank you! 

Posted by Suzanne McLaughlin, Sabinske & Associates, Realtor (Sabinske & Associates, Inc. (Albertville, St. Michael)) almost 12 years ago

Big Mike, you are very welcome. :-)

Cheryl, you will enjoy the series. Jeff is awesome! :-)

Tanya, seriously good info indeed. :-)

I second Suzanne. I am a huge fan (LOL). ;-)

Posted by C Tann-Starr (Tann Starr & Associates, Inc.) almost 12 years ago

This blog does not allow anonymous comments