In this post, USDALoanInfoPA wants to talk about hiring a really good loan officer or Mortgage Lender in Pennsylvania and the importance of doing that, especially when searching for a USDA Loan in Pennsylvania.
We want to give you a real-life scenario that happened to a buyer who was searching for a mortgage lender in Pennsylvania this week. This should serve as a sample to really drive home the point on how important it is to hire and make sure you get a really good loan officer.
USDALoanInfoPA believes that you should search for an honest mortgage lender, no matter where your house buying adventure takes you.
To get started with our Mortgage Lender example, we find ourselves taking a buyer call with what happened. One of our officers had just got back from vacation and found out that there was a problem with the USDA Loan in Pennsylvania. The lender that the prospect had hired actually made an error which delayed three days of the process!
When shopping for a mortgage lender, it is absolutely imperative that you obtain more than one quote. You should also ensure that every lender provides you with a Good Faith Estimate (GFE) to substantiate each offer. When reviewing these quotes, here are five important factors to think about:1. Fixed or AdjustableIf a rate seems very low compared to other offers, make sure that you are not getting an adjustable rate when you requested a fixed mortgage. Brokers will often try to bait you with a low, adjustable rate.2. Cash to CloseLook closely at how much cash each lender is requiring you to bring to the closing table. Sometimes a slightly higher rate is fine if it means that you need les money to close.3. EscrowLook carefully to see if the quoted loan requires you to escrow your taxes and insurance. If so, make sure your lender estimated the reserves that you will need to pay in order to set up the escrow account.4. Origination FeesGenerally, the top line on a GFE will show how many origination points you are paying the lender for obtaining the loan on your behalf. It will always be to your advantage to negotiate this amount. Remember, most loan officers are paid on commission so they would rather make a little less than nothing at all.5. Complete GFEMake sure all fees are disclosed that you will be required to pay, i.e. origination fees, lender fees, processing fees, taxes, title insurance, transfer tax, etc. Some brokers/lenders will attempt to leave off non-fixed costs like taxes in an attempt to make their loan look more attractive.These thoughts should prepare you quite well when seeking out a fair and affordable mortgage loan.
The Mortgage Lender wasn’t using the builders lender so what happened is the Builder was charging them $300 per day for every day they did not close.
The prospective client was getting hit with a $900 bill the good thing is they had a really good loan officer with a really good company and they basically stepped up to the plate and paid that bill!
Here, you might be thinking to yourself well yeah of course they should and you’re absolutely right. They should but, we have been on the end where these lending companies not they’re just like ‘hey we’re sorry this stuff happens it’s not our fault we’ll get the loan done as quick as we can’.
There’s situations, especially in this market right here in Pennsylvania that we’re in – meaning we are in a seller’s market – where, if you don’t close on time and there’s a backup offer that’s better than yours on a pre-owned home.
If that happens, they might just cancel the contract and they let it expire and take the other offer.
If you’re working with a builder or if it’s on a relocation company, there’s a per diem every day if you don’t close and it could wind up into hundreds if not thousands of dollars.
If you’re searching for a Mortgage Lender in Pennsylvania, you need to make sure the lending company that you hire is:
-Understands the USDA Eligibility Guidelines
AND is someone who’s going to do the right thing. USDALoanInfoPA suggests that you always ask for references.
The best place to start is your real estate agent if they’ve been in the business a while they should have a really good relationship with a really good loan officer and mortgage lender company.
Mortgage Lenders in Pennsylvania: Here’s how to Apply for a USDA Loan
THE U. S. DEPARTMENTOF AGRICULTURE HASANNOUNCED MANY FARMSERVICE AGENCYOFFICES WILLTEMPORARILY REOPEN FOR THREE DAYS TOPERFORM CERTAINLIMITED SERVICES FORFARMERS ANDRANCHERS DURING THEGOVERNMENT SHUTDOWN. BEGINNINGTOMORROW -JANUARY17TH, 2-THOUSAND 500F-S-A EMPLOYEES -ARETO REPORT TO THEIROFFICES. IN ADDITION. THE FSAOFFICES WILL BE OPENFRIDAY JANUARY 18 ANDTUESDAY JANUARY 22ND. DURING BUSINESSHOURS - STAFF WILL BEON HAND TO ASSISTAGRICULTURALPRODUCERS WITHEXISTING FARM LOANS. AND PROVIDE 10-99 TAXDOCUMENTS TOBORROWERS -BY THEINTERNAL REVENUESERVICE DEADLINE. STAFF WILL ALSO BEABLE TO HELP WITHSPECIFIC SERVICESSUCH AS PROCESSINGPAYMENTS, CONTINUINGEXPIRING FINANCING STATEMENTS ANDOPENING MAIL TOIDENTIFY PRIORITYITEMS. IN OUR REGION -SERVICE CENTERS WILLBE OPEN IN:EKALAKA, MILES CITY, GLENDIVE, LEWISTOWN,SIDNEY, GLASGOW ANDBILLINGS. YOU CAN VIEW A FULLLIST OF LOCATIONSACROSS MONTANA. ONOUR WEBS.
USDA Maps Changing on June 4th | Home Buyer Tips
NSH MortgageBlockedUnblockFollowFollowingMay 3, 2017USDA Home Loan: Is This Your Right Mortgage Choice?USDA Mortgages versus FHA which is better. NSH Mortgage has the wisdom and tools to help you with the financial benefits USDA Mortgage loans provides you. You decided finally to buy your first home so you must consider all that goes into this decision in finding your ideal home.You want to find the ideal home in a good neighborhood. It should fit your budget and possess the right amenities. Once you have found the property, you have another important decision to make how you will finance it.Today’s market offers several programs that makes buying your very first home much easier and there is no right loan choice for everyone. The correct loan is the one that suits your situation the best. Two extremely popular options amongst homebuyers are the USDA Rural Development loan and the FHA home loan.They are both low down payment loans, but beyond that, they are very different. You might be surprised at which one is the right choice for you.Four Ways USDA Or FHA Might Be BetterWhat if you could get a no down payment loan with comparable mortgage rates to FHA? And, what if that loan allows you to finance closing costs, even without ultra high credit scores? Is such a loan too good to be true?The loan actually does exist, and it is called the U.S. Department of Agriculture (USDA) Rural Development home loan. It is rising in popularity among first time home buyers. A USDA home loan is different from a traditional mortgage in several ways.But that does not make them inaccessible. In fact, some features of USDA make them more attainable compared to FHA.1. Zero Down Financing Plus MoreUSDA loans require no down payment and you may finance up to 100% of the property value, which, sometimes, is above the home’s purchase price. In these cases, the buyer can finance closing costs. Here is how it works, you make an offer on a home for $200,000.The lender’s official appraisal report states the home is worth $205,000. The buyer can open a loan for the full value and since the excess funds are applied to the closing costs such as the title report and loan origination fees. Excess funds can even be used to prepay property taxes and homeowner’s insurance.So, in the end, the buyer pays even less than no down payment. Home buyers typically pay something out of pocket, even if they put nothing down. Closing costs can add thousands of dollars to the necessary cash to close figure.Even most renters must put up a security deposit, plus a few months rent. But with USDA, there is a chance the buyer can walk into a home paying nothing from their own bank account. With FHA, the homebuyer must come up with a 3.5 percent down payment, plus closing costs.FHA has no guideline stating that the loan amount can exceed the purchase price. The only way to get a zero out of pocket loan with FHA is to get a down payment gift, plus additional gift funds or seller contributions for closing costs. USDA is more flexible, so buyers with little cash on hand should look into this option first.2. USDA’s Rural Location RequirementUSDA eligibility depends on the location of the home. You must purchase a property in a rural area as defined by the USDA. Based on U.S. census information from more than 15 years ago.So, many solidly suburban areas are still eligible. USDA publishes online maps with which buyers can check the eligibility of a certain address or geographical area. Buyers will find that some entire states are USDA eligible.Even highly populated states contain surprisingly vast USDA eligible areas. An estimated 97% of the American landscape is geographically eligible for a USDA loan. Still, some buyers might find that eligible areas are too far outside employment centers, and therefore choose a FHA loan, which comes with no geographical restrictions.3. USDA Income LimitsThe Rural Development loan was created to spur homeownership in rural areas, especially among home buyers who would not otherwise qualify. As such, USDA publishes income limits. Maximums are set at 115% of the median income for the county or area.That amounts to adequately non restrictive limits and the following are some examples of maximum annual incomes in various locales around the country.Denver, Colorado: $94,600Portland, Oregon: $84,550Philadelphia, Pennsylvania: $93,750Albany County, Wyoming: $85,700Not everyone will fall within USDA income limits. That is where FHA comes in the FHA loans comes with absolutely no income limits for its standard program.4. The Owner Occupied RuleYou do not have to be a first time home buyer for either FHA or USDA. However, for both loan types, you cannot own adequate housing within a reasonable distance of the home being purchased. For instance, if you own a three bedroom house, you cannot use FHA or USDA to buy another three bedroom house down the street.You must also plan to live in the home you buy. Rental and investment housing is not allowed under USDA or FHA. Both loans have the same goal: get individuals and families into their own homes.Neither loan permits activity that could be interpreted as a real estate investor building a portfolio.USDA And FHA Mortgage Insurance PremiumsSimilar to the Federal Housing Administration’s FHA mortgage, the USDA uses homeowner paid mortgage insurance premiums to keep the USDA home loan program viable for future home buyers. But USDA mortgage insurance premiums are cheaper than those of FHA, and have recently dropped even further. Beginning in October 1, 2016 USDA reduced its mortgage insurance premiums.The upfront mortgage insurance, which is financed onto your loan balance, dropped from 2.75% to one percent. Likewise, the monthly premium fell 15 basis points (0.15%) to just 0.35%. Compare USDA mortgage insurance to that of FHA and you will immediately see the significant savings.The FHA upfront mortgage insurance premium is 1.75 percent and the monthly fee is typically 0.85 percent of the loan balance, divided equally into 12 installments and included with each mortgage payment. The following table compares the upfront fees and monthly costs on a $250,000 mortgage loan after October 1, 2016.The mortgage insurance savings alone could be enough to push some FHA buyers to USDA, if the zero down payment feature was not reason enough.USDA Loans vs FHA: Ease Of QualifyingThere is no stated maximum loan size for the USDA loan programs. The amount you can borrow is limited by your household’s debt to income (DTI) ratio, the comparison between your monthly debt payments and gross income. Essentially, a homeowner who makes $6,000 per month and $2,000 in monthly debt payments has a DTI of 33%.The USDA typically limits debt to income ratios to 41%, except when the borrower has a credit score over 660, stable employment, or can show a demonstrated ability to save. These mortgage application strengths listed above are often called compensating factors and can play a big role in getting approved for any mortgage not just USDA. Both FHA and USDA mortgage options have pros and cons:No down payment: USDA loans only, FHA is 3.5 percentLocation freedom: FHA primarily, USDA is restrictedIncome limitation: USDA only, FHA has no capsMortgage Insurance Premiums: USDA is cheaperRebound buyers: FHA is more flexible after foreclosureUsually, home buyers that qualify for a USDA rural home loan should go in that direction. With comparable rates, lower mortgage insurance premiums and the opportunity for a 100 percent financing. USDA Rural Development loans make sense for many of today’s suburban home buyer.
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