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Best Questions to Ask a Mortgage Lender When Buying a Home. TIP for getting the BEST Loan Possible
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These are the best questions to ask your mortgage lender when buying a home. In this video you'll get the #1 Tip on how to get the best mortgage loan possible. If you're a first time home buyer, watch this video!
How can you know what lender to use? Start with a Google search to look at their reviews & ratings.The best lenders will have great customer service. You shouldn’t have to wait 24 hours to hear back from them. If they don’t call you back by end of the day, drop them. Also, most real estate agents know a trusted lender that has proven to be someone they can count on. There are multiple loan programs available. Most people like conventional loans, but there’s FHA, VA, USDA, Rural, jumbo & some may qualify for down payment assistance.
The best lenders will have great customer service. You shouldn’t have to wait 24 hours to hear back from them. As a matter of fact, if they don’t call you back by the end of the day, I’d drop them like a bad habit. Maybe, just maybe I would make an exception to this rule in times of insane rate drops, natural disasters or things of that nature. Also, most top LOs will offer their personal cell phone #.
You’ll need to fill out an online loan application. It could take an hour. The lender will also ask for a lot of personal information. People often get frustrated during the approval process, be prepared for that. Once the lender has had time to look at your credit & review your documentation, ask them what your best option is for a loan.
Here’s 8 great questions you should ask lenders.
#1 What programs would you recommend & why? Tell them what’s most important to you. Do you need help with your closing costs or is getting the best mortgage rate the most important thing?
#2 What’s the mortgage interest rate? Remember that mortgage rates go up & down on a daily basis & often more than that. You could get a quote in the morning & have a different rate by lunch time. No one ever knows exactly what mortgage rates will do, but the best lenders understand what drives rates & they can usually give you a fairly accurate guess as to if rates are going to go up or down. They can give you recommendations if you should lock your rate now because they believe rates are going to go up or if you should wait to lock because rates should be going down. Normally, I don’t recommend buying down your rate & it’s important to understand that if you buy down the rate, your closing costs will increase. If you’re planning to stay in the home for a long time, it may make a sense to buy down your rate. If you’re not sure, it rarely makes sense to buy down your rate.
#3 What are all of the costs involved? A good lender will break this down. Closing costs are different from down payment. Down payment is the cash you’ve saved to put down on the home. Closing costs is what the lender is charging to do the loan for you. Closing costs can vary significantly from lender to lender & these closing costs will add up to approx 3% of the home price. So, on a $350,000 home, you can expect to pay about $10,000.
#4 Can I buy down my mortgage rate? You can buy down your rate, but it can be expensive. A point is 1% of the homes price. So, on a $350,000 house, 2 points will cost about $7,000 which will buy down your mortgage rate ¼ of a %.
#5 How long can I lock my rate? You can lock your rate at no additional cost for 30-60 days. You’ll need to pay additional money for anything beyond that. Normally, I’d tell you not to pay for an extended rate lock because in most situations, it would be better to apply that money toward your down payment reducing them total money you’ll owe the bank.
#6 What is a realistic timeline to close on the loan? The process will take 30-60 days depending on where you live & current market conditions.
#7 Is the underwriter in-house? To get a final approval, your loan will need to go through underwriting. Usually an in-house underwriter will be faster & the process will often go smoother.
#8 Will my loan have prepayment penalties? Some loans will actually penalize you for paying off your home early. You’ll want to make sure you do NOT have a loan like this because even if you’re NOT planning to contribute additional money right now, you may want to do it in the future.
Ty Wilde
801-995-2337
Wise Choice R.E.
Find me on Social Media -
Ty Wilde is Utah's best real estate agent on YouTube with over 100 real estate videos. Ty is Utah's best Realtor on YouTube for New home construction videos. Ty has some of the Best Videos on buying a home, selling a home and Real Estate investing. Subscribe to Ty’s channel for the best real estate videos on YouTube.
How can you know what lender to use? Start with a Google search to look at their reviews & ratings.The best lenders will have great customer service. You shouldn’t have to wait 24 hours to hear back from them. If they don’t call you back by end of the day, drop them. Also, most real estate agents know a trusted lender that has proven to be someone they can count on. There are multiple loan programs available. Most people like conventional loans, but there’s FHA, VA, USDA, Rural, jumbo & some may qualify for down payment assistance.
The best lenders will have great customer service. You shouldn’t have to wait 24 hours to hear back from them. As a matter of fact, if they don’t call you back by the end of the day, I’d drop them like a bad habit. Maybe, just maybe I would make an exception to this rule in times of insane rate drops, natural disasters or things of that nature. Also, most top LOs will offer their personal cell phone #.
You’ll need to fill out an online loan application. It could take an hour. The lender will also ask for a lot of personal information. People often get frustrated during the approval process, be prepared for that. Once the lender has had time to look at your credit & review your documentation, ask them what your best option is for a loan.
Here’s 8 great questions you should ask lenders.
#1 What programs would you recommend & why? Tell them what’s most important to you. Do you need help with your closing costs or is getting the best mortgage rate the most important thing?
#2 What’s the mortgage interest rate? Remember that mortgage rates go up & down on a daily basis & often more than that. You could get a quote in the morning & have a different rate by lunch time. No one ever knows exactly what mortgage rates will do, but the best lenders understand what drives rates & they can usually give you a fairly accurate guess as to if rates are going to go up or down. They can give you recommendations if you should lock your rate now because they believe rates are going to go up or if you should wait to lock because rates should be going down. Normally, I don’t recommend buying down your rate & it’s important to understand that if you buy down the rate, your closing costs will increase. If you’re planning to stay in the home for a long time, it may make a sense to buy down your rate. If you’re not sure, it rarely makes sense to buy down your rate.
#3 What are all of the costs involved? A good lender will break this down. Closing costs are different from down payment. Down payment is the cash you’ve saved to put down on the home. Closing costs is what the lender is charging to do the loan for you. Closing costs can vary significantly from lender to lender & these closing costs will add up to approx 3% of the home price. So, on a $350,000 home, you can expect to pay about $10,000.
#4 Can I buy down my mortgage rate? You can buy down your rate, but it can be expensive. A point is 1% of the homes price. So, on a $350,000 house, 2 points will cost about $7,000 which will buy down your mortgage rate ¼ of a %.
#5 How long can I lock my rate? You can lock your rate at no additional cost for 30-60 days. You’ll need to pay additional money for anything beyond that. Normally, I’d tell you not to pay for an extended rate lock because in most situations, it would be better to apply that money toward your down payment reducing them total money you’ll owe the bank.
#6 What is a realistic timeline to close on the loan? The process will take 30-60 days depending on where you live & current market conditions.
#7 Is the underwriter in-house? To get a final approval, your loan will need to go through underwriting. Usually an in-house underwriter will be faster & the process will often go smoother.
#8 Will my loan have prepayment penalties? Some loans will actually penalize you for paying off your home early. You’ll want to make sure you do NOT have a loan like this because even if you’re NOT planning to contribute additional money right now, you may want to do it in the future.
Ty Wilde
801-995-2337
Wise Choice R.E.
Find me on Social Media -
Ty Wilde is Utah's best real estate agent on YouTube with over 100 real estate videos. Ty is Utah's best Realtor on YouTube for New home construction videos. Ty has some of the Best Videos on buying a home, selling a home and Real Estate investing. Subscribe to Ty’s channel for the best real estate videos on YouTube.
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