Cleveland Mortgage Lenders

From LoveToKnow Mortgage

Choosing the best company among the various Cleveland mortgage lenders can help make your home ownership dreams come true in one of the most affordable medium-sized cities in the United States. In 2006, Cleveland was one of Money Magazine's Best Places to Live, and in 2005, Cleveland and Pittsburgh were ranked by The Economist as the Most Livable in the United States.

Finding the right mortgage lender is part of the homeowner's dream.

Local Economic Considerations

Housing costs in Cleveland are almost exactly the national average, according to the ACCRA cost of living index. The median home value is approximately $87,000, which is a relative bargain when compared to other cities. Between 2004 and 2005 the average home value increased modestly at almost four percent. This relatively low growth can be viewed as a sign of stability in the market. It also means that you can take your time finding the right home and the right lender among the various Cleveland mortgage lenders.

Cleveland has a high poverty rate at almost 30 percent in 2005, according to the US Census. This means that many neighborhoods might be considered higher risk for depreciation by Cleveland mortgage lenders, and should be taken into consideration by potential buyers.

The homeowner vacancy rate was just 5.5 percent in 2005. The median housing cost for a Cleveland home with a mortgage was approximately $970, or 1.1 percent of the total home value. The median rent was approximately $580, but for homes without a mortgage the approximate housing cost was just $360.

Finding a Mortgage Lender

Word of mouth is a high recommendation. If a friend or family member finds a mortgage lender that they trust, check out their mortgage loan rates and the types of mortgages they offer. Check with your current financial institution as well; credit unions and banks often have better rates for current account holders.

The Ohio Association of Mortgage Brokers requires lenders to carry a valid license and adhere to its code of ethics. While this is no guarantee of ethical behavior, it is at least an indication of ongoing professional involvement. You can find a list of Cleveland mortgage broker members by using their search tool online.

Assistance for Affordable Housing

The Ohio Housing Finance Agency has various programs such as first time home buyer loans, loans for low-income households needing to refinance expensive loans, and programs to assist with down payments.

Regulations

The Ohio Senate Bill 185, which passed in January of 2007, prohibits predatory lending, though it mostly applies to mortgage brokers and non-bank mortgage lenders and the extent to which it covers all Cleveland mortgage lenders is somewhat unclear.

It explicitly forbids:

Making a mortgage loan to somebody who is incapable of understanding the terms and conditions, whether due to a mental or physical disability, illiteracy, or non-fluency in the language of the transaction
Lending without a reasonable expectation that the borrower can pay back the mortgage loan in full
Recommending to the borrower that he or she should default on a loan
Following practices that regularly result in foreclosures to the extent that it could be considered part of the company's business method

Predatory practices not specifically mentioned but which might be considered covered include:

Loan flipping (charging a higher rate of interest on a refinanced loan, except under certain circumstances)
Charging more than a certain percentage above the interest rate for Treasury bills
Certain kinds of prepayment penalties
Negative amortization

Cleveland mortgage lenders are available in abundance and ready to assist you in finding your next home loan.