Tuesday, September 19, 2006
Mortgage Lenders - how to deal.
Mortgage Lenders:
Choosing a lender may seem to be a matter of just checking the rates and closing costs. It isn't. The competency of your loan officer matters. A lot of people got into the business in the last 2 or 3 years while business was booming EVERYBODY was busy. A lot of those new 'loan officers' though know very little about the multitude of financing options available. They will say "Sure we do FHA and conventional too". Not only that but the house you choose may have an effect on what mortgage product is best. The lender should tell you how much you are permitted to receive in seller assistance (*if you can get it). Generally 3% of the purchase price is the limit for conventional loans and 6% for FHA. But not always and there can be restrictions. The loan officer's knowledge and ability to communicate with your Realtor may make a HUGE difference in the cost of your loan. One reason the house matters is because if it needs work you may be very well served by using a lender that will do a 203k streamline. Most of them don't know what it is and if they do - can't do it because they don't know what to do with it if they have one.
* Your Realtor must know how to apply the mortgage company restrictions in coordinating your offers, requests for seller's assist and (potentially) home inspection repair credits to the permitted seller assist amount. An exclusive buyer's agent can help you A LOT. This is just the tip of the iceberg. If you want to know more and you are in the market for a home in South Jersey call me. Paul Howard 856-488-8444
Choosing a lender may seem to be a matter of just checking the rates and closing costs. It isn't. The competency of your loan officer matters. A lot of people got into the business in the last 2 or 3 years while business was booming EVERYBODY was busy. A lot of those new 'loan officers' though know very little about the multitude of financing options available. They will say "Sure we do FHA and conventional too". Not only that but the house you choose may have an effect on what mortgage product is best. The lender should tell you how much you are permitted to receive in seller assistance (*if you can get it). Generally 3% of the purchase price is the limit for conventional loans and 6% for FHA. But not always and there can be restrictions. The loan officer's knowledge and ability to communicate with your Realtor may make a HUGE difference in the cost of your loan. One reason the house matters is because if it needs work you may be very well served by using a lender that will do a 203k streamline. Most of them don't know what it is and if they do - can't do it because they don't know what to do with it if they have one.
* Your Realtor must know how to apply the mortgage company restrictions in coordinating your offers, requests for seller's assist and (potentially) home inspection repair credits to the permitted seller assist amount. An exclusive buyer's agent can help you A LOT. This is just the tip of the iceberg. If you want to know more and you are in the market for a home in South Jersey call me. Paul Howard 856-488-8444
