Most people ask about loan rates, rarely do they inquire about Loan FEE's.
Borrowers have been trained through marketing to watch loan rates, and Lenders know this. Rates are everywhere so naturally you're led to believe they're important, and they are. However don't let a lender low ball the rate just to get you in their office, chances are the rate will change later, here's why ...
Rates are Rates.
Every bank is going to be very similar in rates on any given day because it's all tied to what the current market is doing. The "market" includes influences from Bonds, Treasury, Mortgage Backed Securities, Jobs reports, Inflation, The Federal Reserve Bank, the Stock Markets (world wide) and a host of other things. The bottom line here is this - the rates available to you are based on exactly Two things:
Loan Fee's are less know but cost you much more money
Loan fee's are different across most banks and these can fluctuate, often times adding Thousands of Dollars to the cost of your loan. ALWAYS inquire about Loan FEE's, how much are they charging you and are there any upfront costs? You shouldn't have to pay an application fee or Credit Report fee upfront. Many lenders will charge a 2-3% loan origination fee, this is often an unnecessary cost to you and it's based on the loan amount. A $200,000 loan would add a cost of up to $6,000 to YOU, so it's very important to watch for this.
Service and Speed Matter in Lending
SERVICE means finding the Best Professional to help, this is the key to getting a Pre-Qualification and ultimately a home loan that meets your needs based on your situation. There's a lot more to it than just reviewing your application, a Great loan officer will review your situation by looking at your income, your debts, your credit report and Your Dream.
Then the process begins by Tailoring a loan that meets what you want to accomplish with what you have. This requires running multiple loan scenarios across multiple loan programs, determining if any debts should or need to be paid down, whether it's cost effective and feasible to increase your credit score so you may get a better rate or into a better loan program. The results of a Great loan Professional taking the time to complete all of this for you will be astounding, you'll have clear and concise loan options and a course of action.
SPEED is action and execution, both are essential to successfully help you achieve home ownership. Today, getting a loan done in 30-45 days just doesn't cut it because cash buyers are closing faster and they're stealing the dream homes of would be buyers.
When you get to the point of writing an offer on a home, you've got to write it to win it and I'll will cover more on this later. What's important to know right now is that you MUST close in 30 days or sooner, 15 days is awesome and it can be done, so long as you have the right loan Professional.
I'm into All Things Real Estate, right?
I am licensed as Mortgage Loan Originator and work under Fairway Independent Mortgage Corporation who is licensed to do lending in all 50 states. With me, it's all about Service, Speed and Client Satisfaction. There are no application fees, there's no upfront charge for a Credit Report and there's none of those BS Origination fees charged.
Would you like to hire me to help you get Pre-Qualified for the Home loan that's best suited for your needs?
If you'd like to read more about what I do at Fairway Independent Mortgage Corp simply click HERE and you'll be taken to my corporate lending page.