Privacy and the mortgage process

Privacy and the mortgage process

Privacy and the mortgage process

Many borrowers are uncomfortable revealing information in their mortgage loan application that they fear might become public knowledge, or they do not want shared with another company or government agency. Mark Wells of Preferred Financial Services discusses your legal protections and what to expect when you apply for a mortgage.

I don’t want anyone to know what I paid for my house, or what kind of mortgage I obtained to buy it. How can I keep this private?  Of all the information coming in and out of the mortgage process, this is the one thing you will not be able to keep private. Since all deeds and mortgages are recorded in the courthouse so that they are legal and binding, they enter into the public record. Although this information is not broadcast, it is available to anyone who wants to make a personal appearance at the records office to look it up, or by accessing it online.

Is everyone going to know how much money I make and how much I have in my checking and savings accounts after I do a mortgage?  Absolutely not. Your broker and your lender must give you a privacy disclosure that indicates that they either have a “share” policy or a “no-share” policy. If they have a policy that they share this information, you must be given an “opt-out” opportunity. Most good brokers and lenders have an absolute privacy policy to not share, and I suggest you use one of those. But if you encounter the other, always “opt-out” where they cannot share your information.

I’m afraid to do an appraisal to refinance. I may want to sell my house in a few years, and if my buyer knows what it was valued at, he may try to make me lower my sales price. How do I keep this from happening? Your appraisal will not enter into any public record and will only be given to you and your lender. Unless you choose to share it with a potential buyer, they will never know that it exists.

What if my appraisal comes in high and the county tries to increase my property taxes?  Again, there is no transfer of this information to the county, and they cannot know the value unless you share it with them. On the other hand, if the value comes in low, you may want to take it to the county and use it to appeal for lower taxes based on the lower value.

Your full rights to privacy and the mortgage process are covered in the Gramm-Leach-Bliley Act, and you can reference this online for a full explanation of all that is covered by this act.

I welcome questions and comments about Privacy and the mortgage process, and can be reached by phone at (864) 235-9596 or via email at Mark@TheGreatestRates.com.

Or Text Me Now! 864-430-4856