What questions should I ask a mortgage lender in Lock Haven ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.
USDALoanInfoPA is going to go through 10 different questions that you can ask your mortgage lender in Lock Haven. Be aware that your USDA Loan or Mortgage broker will be getting the loan that you need and the service that you want.
The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.
How Much Will a Mortgage Broker Cost?
Most mortgage lenders in Lock Haven actually work for free.
So it doesn’t actually cost you anything in order to do it.
They get money because they are paid by the banks when you successfully get a loan.
So they get a small commission of the loan that you apply for and if you get it.
Mortgage Lenders, How To Choose The Right Accredited Home Lender
So most mortgage brokers in Lock Haven will work for free and it won’t cost you anything.
However, there are some mortgage brokers out there who do require deposits or who do require you to pay.
So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.
How much do Mortgage Lenders earn in commission from me and from my loan?
This is less to understand exactly how much they make.
You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.
But it’s more to understand whether or not they’ll be willing to give you this information.
A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.
ALERT: Minimum FHA Credit Score Requirement Falls 60 Points
If they skirt around this issue and they don’t tell you how much they earn.
Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.
So, I’m just trying to establish whether or not this mortgage broker in Lock Haven is someone that I can trust.
And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.
So ask that question and see how they respond.
Do Mortgage Lenders Invest Themselves?
Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.
However, if they are interested in property in Lock Haven, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.
They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.
If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.
Lender's Mortgage Insurance Explained
Some of the mortgage lender folk who work with people who are doing particular investment strategies.
So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.
Chastin J. MilesBlockedUnblockFollowFollowingDec 22, 2015Before you start searching for a home, the first questions you need to ask is “How Much Can I Afford?” Unless you plan on paying all cash for your home, this is not a question you can answer on your own. You will need the assistance of a mortgage loan officer. A mortgage loan officer will be the one to qualify you for a home loan or commonly referred to as a mortgage.There a different mortgage programs available but they do all have different qualification requirements and different terms. Your specific financial situation will determine the type of loan that would be best for you. One very common type of loan is a FHA loan. Recently, I interviewed one of my loan partners so that he could give us all a better understanding of the FHA loan. This is what he had to say:Chastin: What is an FHA loan?Daniel: An FHA loan is a federal housing administration loan. Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. It is designed to be an affordable alternative to help more people live the American dream of home ownership. FHA loans are popular with mortgage borrowers because of lower down payment requirements and less stringent lending standards.Chastin: What are the qualifications for an FHA loan?Daniel: Someone like me, a DIRECT LENDER can go right to the government guidelines with no investor overlays, with that being said it is required per FHA guidelines to have a 580 credit score minimum with established credit history. The higher your score, the better interest rate one will be approved for. Your DTI ratios have to be below 43% for scores under 620, and 57% for scores over 620. And of course the 3.5% down payment, which can be gifted from friends family etc.Chastin: What is “DTI” for first time home buyers?Daniel: Ah yes, debt-to-income ratio. It is the mathematical equation of your monthly debt obligation associated with your CREDIT REPORT and other LIABILITIES (child support, alimony are good examples and it does not include utility bills or anything of that nature) divided by your monthly income. For example someone with a $300 car payment $50 in credit card minimum payments and $150 student loan payment, would have $500 in monthly obligations plus proposed housing payment divided by income for DTI ratio.Chastin: What is the minimum down payment required for FHA loan?Daniel: Minimum down payment is 3.5% of the borrowers own money or gift. It cannot come from seller concessions or selling party. All money needs to be sourced and verified. A good real estate agent like yourself can typically get closing costs covered by the listing party requiring the borrower to only come with the 3.5% to the tableChastin: What do you think personally of FHA loans?Daniel: My personal opinion- it is a great cheap alternative one can use to get into a new home. I think a lot of first time home buyers should utilize the 3.5% down payment keeping maximum liquidity in your financial situation, after all in DFW you break even on your investment into a home shortly after a year of ownership with the market appreciating so much. OR perhaps use FHA to build credit and equity into a home, as you better position yourself financially you can refinance into a conventional loan to drop the mortgage insurance required on FHA mortgages. It also is more lenient than pretty much every other mortgage product out there, which makes it easier to be approved for if you have financial struggles recently.There you have it, thats an FHA loan. I’m sure that didn’t answer all of your questions about it but it should have given you a pretty good basis. If you have other questions, stay tuned. We will be doing a video interview very shortly where we get into more detail about it.
So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.
What details do Lenders need from me?
It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.
You might need pay slips; you might need proof of identity, all of that sort of stuff.
If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.
ALERT: Minimum FHA Credit Score Requirement Falls 60 Points
Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.
So the easier you make it for them, the more likely you are going to get better service.
What can I do as a client to make this go as smoothly as possible?
You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.
And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.
They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.
You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.
And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.
So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.
You want to see them get paid.
You want to see them do an easy mortgage so they get paid easily.
And so you can develop a relationship into the future.
Which lenders can I borrow the most from?
Most people go into a mortgage broker looking for the cheapest interest rate possible.
What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.
However, they might not showy ou banks that will lend you more money than you potentially need at the moment.
Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.
Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.
Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.
And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.
Because, yes, interest rate is important but how much you can borrow is also important as well.
Can I see a full list of my borrowing options?
Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.
And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.
You’re probably going to still choose from one of the top three ones.
But you just want to see that they’re giving you the full amount of information.
And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.
And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.
So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.
Will this put a mark against my credit file?
And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.
When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.
And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.
So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.
But if you’re getting lots and lots of marks against your credit file, then that could be an issue.
So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.
How soon can I revalue or borrow again?
So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.
There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.
So, speak to your mortgage broker about the lenders that will allow you to revalue faster.
And basically, this will give you an idea of how quickly you can revalue to consider going again.
You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.
Will My Loans be ‘cross-collateralised’?
Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.
And basically, you want to avoid this at all costs from what I hear.
And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.
So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.
So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.
If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.
You can see what high rental yield properties look like that are likely to generate a positive cash flow.
Did You Know – You Can Get Pre-Approved for a USDA Loan in Lock Haven?
Hi, everyone! Melanie Cameron herewith The Cameron Team, Coldwell Banker Sea Coast Advantage in Wilmington, NorthCarolina. Had an important topic that I wanted to bring to everyone's attentionthat is as a deadline coming up really fast. A lot of buyers in this area likethe USDA 100% financing program, and what that is is a programthat allows for homes that are in certain areas to be eligible for 100%financing. Those maps are getting redrawn, as effective June 4th. A lot of the mapsin our area that were previously eligible for the 100%financing will no longer be eligible for the 100% financing. Stillgot a little bit of time to take advantage of it, like again, the mapschange on June 4th, which is little less than two weeks away. There are somecriteria that have to be met in order to to still get that in the areas that aregoing to no longer be eligible after June 4th. You have to have a signedcontract, ratified contract, by both parties dated before June 4th. You have to have your loan application turned in with the property address onthe property turned in before June 4th and the loan estimate has to be issuedby the lender within 3 days of the application date. So, a couple of things. There. Obviously, the buyer would still need to make all the other necessaryqualifications for the USDA loan, but a lots going on. So, if you're consideringor on the fence about looking at a home that's in the USDA eligible area, thatmight not be in the USDA eligible area in a couple weeks, might want to go aheadand make a decision. If you have any questions about that, give us a call. Youcan reach us at 910-202-2546. Check us out at TheCameronTeam. Net. Remember to continue to like/share/comment on Facebook andYouTube to get in on our monthly drawings. Have a great day, everyone!.
How To Pick A Mortgage Lender When Buying A House
Hi everybody, your real estate expert, LanceMohr.
And in this series, I'm talking about how to buy a house.
Today, I'm going to talkabout how to pick a mortgage lender.
If you don't need financing, don't worry aboutwatching this video unless you just want more information.
Alright, so how to pick a lender.
First off, if you've already chosen a real estate agent, this is a good place to start.
You could also ask some friends and family members, co-workers, get an idea who theywould choose.
Now personally, I was in the mortgage banking industry for several yearsand I was a co-owner of a mortgage company.
There's three types of lenders out there;number one is your big bank, your Bank of America, Wells Fargo and then you have yourmortgage bankers and then you have your mortgage brokers.
Now I'm not a real big fan of thebig banks or credit unions for that matter.
I think there's a lot of credit unions thatare really good, don't get me wrong and I'm not saying that there is anything wrong withbig banks.
I'm not a fan of them and the reason is – the reason why I don't like big banksis because if you go into a bank like Bank of America or say a Wells Fargo, you are onlyusing their money.
So if you go in and you have a very unusual circumstance and maybeyou don't qualify for their loan, they're not going to tell you "you don't qualify forour loan, go somewhere else".
They're just going to say, "You don't qualify for a loan.
" Now you may go to a mortgage banker or a broker and qualify for theirs.
So that's the problem, they are very, very limited because they only lend their money.
If you are round, you're not going to be able to fit in their square hole.
So it's not areally good way.
Now if you do use a bank, if you say Bank of America which I'm not afan at all, I haven't had them close a transaction on time in years, if they even close it atall.
So I got to say that, the only bank I can say that about.
But let's say you go toa Wells Fargo or you go to a Bank of America, always try to use a local loan office or don'tuse someone out of state, because you've heard of the term, "out-of-state, out of mind","out of area, out of mind".
That's really how it is.
You want someone local that knowsthe local ways in Florida, and more specifically I'm in Florida, I'm in Tampa, so the cityyou live in.
So that would be my first personal recommendation and I know a lot of lendersout there might be getting mad if they're watching this right now, especially if theywork for Bank of America.
But that's my opinion, I've worked with a lot of credit unions whenI was in the lending business and certainly not all of them.
Credit unions, the good thingis they really care about their customer.
The problem is they don't really do a lotof training to their loan officers unfortunately.
And you know, a lot of times when you're goinginto and getting a loan with a bank or credit union, a lot of times the loan officer ison a salary plus bonuses, and you want someone who, if they don't get you a loan, they don'tget paid any money.
That's the best way you are going to get a loan.
So I am a big fanof bankers.
Now really the difference between a bankerand a broker, is a banker lends their own money and will underwrite the file, usuallyin-house.
They are also called correspondent lenders.
Now I've worked for bankers before,and if bankers just don't have a competitive program – let's say you go in and maybeyou are a veteran and they're not real competitive on VA loans, let's just say.
They will usuallyhave brokers that they work with as well as and they could do different things.
So theyare usually good.
Brokers, I've worked for brokers when I wasn't lending as well andit's the same thing, but the difference is brokers have access to dozens and dozens oflenders.
Don't get fooled by that.
Most brokers only have about 5 to 7 lenders they work withat any given time; they might have a lender for their conventional financing, they havea lender for their government financing, they have a lender for their jumbo finances.
So don't get caught up into all that.
But the difference between bankers and brokers,if they don't find a way to say yes, they don't get paid.
And a lot of time what peoplewill do, is they will go out and they will be picking say maybe three companies, andthey will call up for a rate quote.
But you really, when you are calling up for a ratequote, you need to ask very specific questions and you need to do it all on the same day.
Because you could call one institution on Tuesday and rates could have changed up ordown on Wednesday.
And then you need to call the same day, you need to give the same parametersfor each one of them, "So I'm calling, I want to get a loan amount of $200,000 and what'syour rate lock?" Now I'm not a big advocate of going around and doing rate shopping becauseat the end of the day, lenders all get their money from the same place at the same price.
If you call 10 lenders, probably nine of them are going to give you the same quote for themost part.
Now banks will generally be a little bit more in the interest rate, but less inthe fees because everything is in-house, where a broker, they get their pricing at wholesale.
So there you could usually be more competitive on the interest rates, but they are a littlehigher on closing costs because they have to sort of outsource it and get it underwrittenover here in the process and all that stuff.
So get the information and call them all up,talk to them, ask them again the question, why should I work with you, what makes youdifferent, what makes your company different.
Whatever you do, whatever they tell you, onceyou lock in the rate, get a rate lock.
You don't want to be on different pages and theytell you one interest rate and then all of the sudden, you show up at closing and it'sa completely different interest rate, maybe it's a quarter percent higher.
Because theseller doesn't really care about your loan, all they know is you have to close.
So getit in writing from the lender, I can't tell you how many people – when I used to bein lending, pretty much everybody that I worked with, I always put everything in writing.
No one ever asked me but I wanted it all in writing for the documentation.
So always askfor it in writing and really try to take the person who you feel is looking out for yourbest interest, because at the end of the day, you could have the best interest rate in theworld, but if you are on the wrong loan program, the interest rate is sort of irrelevant.
SoI hope this helps you.
Leave a comment, if you have any questions, if you have anythingto say, you work for Bank of America – please leave a comment because I think it's goingto be real nice, but it is what it is.
And if you like my videos, subscribe to my channel,give me a thumbs up.
I appreciate it.
I wish you the best of luck in buying a home.
Havea great day.