Mortgage Lender in St. Marys (888) 464-8732

What questions should I ask a mortgage lender in St. Marys ? 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 St. Marys. 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 St. Marys 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.

First Time Home Buyer BEST MORTGAGE DEALS When Buying a House | First Time Home Buyer Loan Programs

So most mortgage brokers in St. Marys 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.

USDA Loans, Mortgages For Rural Farmers and Low Income Farming Households

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.

Lendinghome

So, I’m just trying to establish whether or not this mortgage broker in St. Marys 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 St. Marys, 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.

Importance of Hiring a Good Mortgage Lender - A TRUE Story

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.

So let's say you want to invest in propertybut you don't have the minimum 20% deposit required.

Well, you're likely going to haveto pay what's called Lender's Mortgage Insurance.

But what exactly is Lender's Mortgage Insuranceand is it worth the cost? In this episode, I'm going explain Lender's Mortgage Insurance.

What exactly it covers and why you would want to get it.

Hey, I'm Ryan from onproperty.

Com.

Au, helpingyou find positive cash flow property and I've just moved house.

If you're watching the video,you can see a bunch of boxes in the background behind me so I apologize that I don't havethe best setup today, but I did want to create some good content for you.

And this is a questionthat a lot of people ask.

A lot of people want to see lender's mortgage insurance explained.

And I do feel like often times, banks and lenders and sometimes mortgage brokers don'treally explain exactly what lender's mortgage insurance is or they don't take enough timeexplaining it so you actually understand it.

So we're going to get down to it, try andunderstand exactly what it is and why it could benefit us and whether or not it's worth payingfor.

Lender's mortgage insurance is an insurancefee that helps to cover the lender when they're taking an increased risk on a loan.

So, lender'smortgage insurance, some people believe that it's actually to cover you personally as theborrower of the loan, but it's not.

It's for the lender to protect them if they're takingan increased risk on a loan.

What exactly is an increased risk? Well, for most properties- most residential properties - banks want to see at least a 20% deposit in which casethey won't charge you lender's mortgage insurance.

They like to see a 20% deposit because ifyou, for some reason, default on your loan and they need to sell their property, they'requite confident that they're going to get at least 80% of the value that you paid forthe property back when they sell the property and this will cover their loan.

However, if you're only borrowing 5% of theproperty's value, then they're a lot less confident that if you default on the loanthey're going to get 95% of the value of the property back.

So it's a higher risk loanfor them.

And so, in order to cover this higher risk, they charge an insurance fee to coverthat extra risk.

Obviously, a lot of people will take out this insurance, not everyonewill need it.

That's the way that insurance works.

So the banks will charge you a one-timefee and everyone else a one-time fee and I guess this insurance covers them against thosefew circumstances where people do default on a loan and they have more trouble sellingthe property and getting enough value back.

So lender's mortgage insurance, it's a one-timefee that you pay and it goes to protect the lender because they're taking an increasedrisk on you to get the loan.

This sounds like it's not very beneficialto you, right? It's a fee that you have to pay, generally, it's added on to the loanso your loan gets bigger, but you've got to pay it and it protects them as the banks.

Well, what's the benefit to you as a borrower? Well, the benefits aren't obvious, but theyare there.

The benefit of lender's mortgage insurance is that if you don't have the fulldeposit, then you can still get money from the bank.

If lender's mortgage insurance didn'texist, then if you didn't have a 20% deposit, you might not be able to get a loan at all.

So, those of you who are going out and wanting to invest with a 5%, 10%, 15% deposit, youwould need to keep saving.

Or, the flip side of that is if they would still lend out themoney, they would need to hike up their interest rates an give you much larger interest rates,so you wouldn't have a great interest rate on your property.

You'd be paying a certainamount of points above the standard interest rate because they're taking increased on that.

So, even though lender's mortgage insuranceis a fee that you need to pay, at least, you can still get a loan and you can still geta loan at a good interest rate.

If lender's mortgage insurance didn't exist, then youprobably couldn't do that.

So, lender's mortgage insurance does have value to borrowers.

However,it's just a bit less apparent than the value that it is for the lenders.

So how much does lender's mortgage insurancecost? This is an impossible question to answer because there's so many different varyingfactors.

For example, the value of the loan is a varying factor.

The percentage of deposit- whether you've got 5%, 6%, 10%, 15%.

That's all going to affect the value of the lender'smortgage insurance that you have to pay.

Basically, the larger the risk the bank feels that they'retaking, the larger your lender's mortgage insurance is going to be.

They may take intoaccount whether you've got proven savings or not.

And if you don't have proven savings,your lender's mortgage insurance might be higher.

They might also look into your credithistory and things like that, but I'm not really sure if that affects lender's mortgageinsurance.

But another factor is that lender's mortgage insurance varies from lender to lender.

So you may go to one lender with the same loan value, the same percentage of depositand you may have a slightly different figure than if you go to another lender.

So if youwant to find out how much lender's mortgage insurance is going to cost for your specificsituation, then just go to Google, type in "lender's mortgage insurance calculator".

You should get a few of those come up and you can punch in your figures and it'll giveyou a pretty close estimate to how much you're going to pay.

But, obviously, you're goingto need to speak to your lender or speak to your mortgage broker to get a more accurateestimate of how much lender's mortgage insurance is going to cost.

If you want to avoid paying lender's mortgageinsurance, the only ways I know how to do this is to save a larger deposit.

So thatmight mean 20% for residential property, it might mean 30% for commercial property.

Butmake sure you speak to lenders to find out how much you'll need to save.

So you can savea larger deposit.

You could buy cheaper properties so your deposit is now worth more as a percentageof the property.

So if you get that percentage over 20% for residential, then you may beable to avoid lender's mortgage insurance.

Or, you can get a family guarantor on yourloan.

so if you've got parents or you've got immediate family who are willing to put uptheir property as security for your loan, then the banks can take some security forthem.

It then becomes a less risky deal for the banks.

And, therefore, you don't haveto pay a lender's mortgage insurance.

So, having a family member go guarantor on yourloan is a way to reduce or remove lender's mortgage insurance.

So, that's how you canavoid it.

Save more, buy a cheaper property so you're deposit's worth more as a percentageof your property or get a family to guarantor your loan.

The last question and thing that I want tocover is: Is it actually better to pay lender's mortgage insurance or is it better to waituntil you have a large deposit? I've seen people talk on both sides of the scale andto say you should absolutely never pay lender's mortgage insurance.

You should always savea 20% deposit when you invest.

Lender's mortgage insurance, absolutely wasted money becauseit's a fee that goes to the bank and you've got nothing to show for it.

And then, theother side of the pendulum are people saying that you should always pay lender's mortgageinsurance and always invest with the smallest deposit possible so you've got the least cashin the deal so that you can take the cash you do have and invest in more propertiesand grow your portfolio faster.

So, some people say never pay it, always save at least 20%.

Some people say always pay it, put as little cash into each deal as possible, which meansyou're going to pay basically the maximum lender's mortgage insurance for your situation.

So there's people on both sides of the table.

I think a better approach to it is to actuallylook at your own situation and assess whether it's worth it for you.

Lender's mortgage insurancecost thousands of dollars.

So you need to weigh up: is it worth investing in this propertynow with the smaller deposit and paying thousands of dollars versus actually saving more toget a deposit? Someone who only has a 5% deposit, they have a lot of trouble saving, but theycould get into the market now.

Maybe they're great at renovation so they can build equityand value in their property, it might be worth investing for them and paying the lender'smortgage insurance because they can into the market faster, they can build equity and they'regoing to make more than the lender's mortgage insurance cost them.

Or they might be someonewho's more risk-adverse.

They want a larger deposit or maybe they've got 15% and they'regreat saver so it's only going to be a couple of months until they're at 20%, well then,it might not be worth it for them to pay lender's mortgage insurance because they are more risk-adverseand they can save the money so they don't have to pay it anyway.

I think the best approach is to look at itand say, what are the risk versus the reward? How much is the lender's mortgage insurancegoing to cost me? And am I going to make more money back than the lender's mortgage insuranceis going to cost me? So if I can invest one year earlier, but I have to pay lender's mortgageinsurance, can I make that money back in one year of capital growth? Or one year of theability to have access to that property and improve the property? Or one year of positivecash flow from a property? So how much is it going to cost me? And then, how much amI going to make out of that and can I make more than it's going to cost me? And that'skind of how I would assess it.

For me personally, I would pay lender's mortgageinsurance to get into the market earlier because I'm not the best saver in the world.

So ifI had enough deposit to go, but it means I got to pay lender's mortgage insurance, aslong as I've done my research, I'm confident in the area, I'm confident in the propertythat I've purchased and I've got a strategy to make money for that property, I'm happyto lock that property down.

Pay some lender's mortgage insurance, but I get it and I'vethen got the opportunity to make money versus just saving and waiting and waiting and thenmaybe not investing in the future because we all know things happen that dwindle ourmoney supply.

Emergencies come up or we decide to go on holidays or whatever it may be.

SoI'm not the best saver so I like taking action, locking it in and moving ahead.

Other peopleare different.

So you really need to assess whether it's worth it for you.

I hope that this has explained what exactlylender's mortgage insurance is and then you can assess for yourself whether or not youthink it's worth the cost that it's going to cost you or whether you'd be better offactually saving extra money so you don't have to pay lender's mortgage insurance.

Just tocover it off again, in case you didn't completely get it at the start, lender's mortgage insuranceis a one-time fee that you pay on the creation of your loan and that fee goes towards de-riskingthe banks.

It's lender's mortgage insurance, it's their insurance - the lender's insurance.

It's going to protect the lender against the increased risk their taking on you becauseyou don't have what they consider a large enough deposit to be a low-risk loan thatthey're riding.

So you pay a one-time free, it protects them.

Apart from that, there'sno benefit to you.

It means you can borrow money, but that money is protecting the lender.

It's not going to protect you in any way.

I hope we made clear what lender's mortgageinsurance is.

So when you're talking to your mortgage broker or talking to your lenderand they mention it, you say, "Okay, yup, I understand.

That's a fee I have to pay becauseI don't have a large enough deposit and it's helping you to be able to lend me this moneywithout charging me an exorbitant interest rate or without saying, 'No, sorry.

We can'tgive you that loan.

'" I'm a big fan of lender's mortgage insurancein the industry.

It lets a lot of people get into the market earlier who want to.

And so,I'm not against the fee.

But, again, you need to assess it for your own situation.

If you're interested in investing in positivecash flow property and you need help finding it, then go ahead and check out my membershipwhere I go out, I find a high rental yield property every single day and share it withthe community.

So head over to onproperty.

Com.

Au/membership if that's something that you're interestedin.

Otherwise, until next time, stay positive.

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.

Factory farms slip environmental review for USDA loans

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.

Home Loan Interest Rates Today

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.

Fha Mortgage Rates

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.

Mortgage Solutions

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.

Fixed Rate

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.

Mortgage Company

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 St. Marys?

Home Loan Pre Approval

Hey, everybody.

When you're sarching for your first home, you're also searching for your first mortgage lender.

Now, I dn't make specific recommendations on lenders because it's way too tough to stay up to date on the many thousands of lenders who work in the U.

S.

But I can give you some very useful tips for how to approach your search for a lender.

I'm Ilyce Glink.

Here's today's Real Estate Minute.

When youre looking for a mortgage lender you want start off by talking to a mortgage broker who has a good reputation in your area.

You should also, at the same time, talk to a regional lender, a credit union (if you belogn to one or you can join one) and a small local bank.

Each of these different types of lenders will offer different loan programs at different prices.

You should also ask friends and relatives who they've used for their home loans and how the experience went.

But emphasis is on the experience.

I have a great friend who once asked her sister for a lender recommendation, and the sister gave her a name and my friend had this horrific experience.

And when she went back to her sister to see what kind of experience her sister had had with this person, the sister confirmed that she, too, had a horrific experience.

"Hello! Why did you give me that lender's name?" my friend asked, and the sister said, "Well you weren't specific that you wanted someone good.

" Sounds like a Seinfeld episode, right? And yet, this kind of stuff goes on all the time.

So here are some questions you should ask the person providing the recommendation that will help separate the wheat from the chaff: Did the lender repeatedly ask for the same documents? Is the lender organized? A good lender should enable you to close on a home within about forty-five days - unless there's some real serious problems with the house - so make sure to ask your friends and relatives if their lenders were able to meet that standard.

It may sound obvious, but it's a good idea to look for a lender who specializes in making residential loans and has a reputation in your area for coming through with these loans.

Banks that aren't generally known for their mortgage lending can be tougher to work with than some of the really big lenders.

And while you may be thinking to yourself, "I want to avoid the big banks," you're probably going to end up with one anyway.

Even if you go with a mortgage broker, that mortgage broker may actually work with a whole bunch of big lenders to fund your loan.

Above all, you need to find a lender that helps you understand the mortgage application process in a way that makes you feel comfortable and secure.

This is a huge decision.

You're going to finance this property for the long run, and you want to do that with the right kind of partner.

And I just want to give a shoutout to anybody who is closing around October of 2015.

If you are, please watch the videos that I've made on the TILA-RESPA changes that are coming your way.

Right now they're scheduled to go into effect October 3rd of 2015.

If you are looking to close around that, either before or after, you may have to build in some extra time to make sure that you don't get caught up in all the craziness that's going to go on I think when TILA-RESPA actually goes into effect.

Thanks for watching this video.

If you've got a question about buying real estate, investing in real estate, or financing real estate, you can send it to me at questions@thinkglink.

Com or you can sent it to twitter @Glink.

Check out my next Real Estate Minute video on Monday for information on how to prepare for your first mortgage application.

See you next time.

I'm Ilyce Glink.

10 Questions You Should Ask Your Mortgage Broker (Ep268)

Prequalify For Home 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 Rural Housing

USDA Loan in Pennsylvania (888) 464-8732