It used to be a common sight to see someone leaning under the hood of their car, tinkering with its performance or replacing a part. These days that sight is as rare are hen’s teeth due to the complicated nature of today’s vehicles.

When cars were first invented, their owners were often plagued with breakdowns. Auto repair shops were a natural offshoot of the car industry and owners were relieved that they no longer had to do their own repairs.

As cars become more complicated over the last 30 years or so, repairing cars was no longer a matter of looking and listening to diagnose a problem. As cars became computerized, mechanics had to include electronics in their knowledge base.

Transmission servicing is a very good example. Repairing or rebuilding a modern car’s transmission can not only be extremely specialized work, but it can also be risky and very expensive. That makes proper maintenance and regular transmission service very important. It is the best way to cut down on repairs that might otherwise have happened later on down the road.

Auto repair mechanics can no longer be simply self-trained grease monkeys. Cars are just way too sophisticated, and there are far too many specialized variables from model to model. These days – even in a good independent shop – the person who works on your car’s engine or transmission has gone to school an average of eighteen months in order to learn everything they need to know to do their job correctly. That’s a far cry from the “shade tree mechanic” of yesteryear!

Often specializing in one or two makes of car, well-trained technicians will usually attend continuing education classes and seminars to keep up with the latest developments. Diagnostic methods and tools also change frequently as improvements are made and new materials are discovered.

As in all industries, familiarity with computer technology is critical to the training of a well-rounded auto mechanic these days. Computerized diagnostics are now used to find out what is wrong with modern cars. The machines used to diagnose problems are complicated and only trained personnel can use them correctly. This diagnostic skill is another reason why “mechanics” now need so much education.

In Rowlett Texas, Eagle Transmission specializes in repairs for domestic and foreign cars including Volkswagen, Volvo, BMW, Mercedes, Jaguar and others. Eagle Transmission service has been repairing transmissions, clutches, air conditioning systems, and engines for over 25 years throughout the state of Texas.

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Would you be willing to bet $300 of your own money that your home is worth what you think it is? Unless you’re ultra-competitive and will bet on pretty much anything, my guess is your answer would be a resounding “No!”

When you go to buy a home, or refinance your existing home, that’s exactly what you’ll be doing in most cases. This is one of the lesser known and most common mortgage ripoffs that occur because people outside the industry don’t know better. Knowing this and other mortgage financing secrets can save you hundreds or even thousands of dollars.

Purchasing a home, unless you’re independently wealthy, involves borrowing the majority of the purchase price from a lender, typically a bank. Before the lender will give you the money, they’re going to want some assurance that the property you’re going to buy is worth at least that much money, and in most cases more. It’s unusual these days to find any lender that will give you 100% of the value of a property. It’s typically 15-20% now. A far cry from the wild and woolly days before the mortgage market crash!

So, let’s say you want to buy a house. You go out and find the perfect house. You and the seller haggle back and forth and settle on a price of $100,000, just to keep the math simple.

Now you go find a lender and ask them to give you a mortgage. They tell you “Okay, we’ll give you $80,000.” You’re okay with that, so you proceed with the mortgage application.

As part of the mortgage application process, the lender will require an appraisal of the property. The appraisal must be done by a certified professional appraiser. The lender isn’t going to take the owner’s word for it!

Typically, the lender schedules the appraiser’s visit. The appraiser calls the property owner and arranges to visit the property. You, the applicant, are required to pay for the appraisal before it can take place. In my area, this fee is generally around $300.

So, you’ve now paid $300 to have the property appraised. If the appraiser agrees that the property is worth at least $100,000, no problem. The application process moves forward.

What if the appraiser says the property is worth less than $100,000?

Ready…?

You don’t get the loan, and, worse, you don’t get your $300 back! You just bet $300 and lost!

Lenders have been doing this for years and it’s become accepted as a way of doing business. People simply suck it up, pay the $300 and hope for the best. In recent years when property values were rising rapidly, this was rarely a problem, unless the seller had ridiculous expectations and the buyer no clue about the real value of the property. Nowadays, however, property values are declining and it’s much less certain that the seller, however well intentioned, really knows the value of their property.

Some reputable mortgage brokers have adopted a policy of paying for the appraisal out of their own pockets. This puts the onus on them to do their homework and have a good knowledge of the current property values in their area. From their perspective, it eliminates the possibility that they would have to call a potential customer and tell them they just blew $300.

The buyer will pay the appraisal fee as part of the normal closing costs, so it’s not like they don’t have the obligation to pay it. With the broker paying the fee first, this eliminates the risk on the part of the buyer and is simply good customer service. Shop around for mortgage lenders and brokers and always ask them who pays the appraisal fee!

This is just one of today’s money secrets that can help you navigate the rubble of the mortgage industry without getting scammed!

Institute For Continuing Healthcare Education (DHEC)

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