Real Estate Wise
  • Real Estate Wise
  • About Us
  • Sellers
    • How do we help you make the wise move in selling your home?
    • PULL HERE TO SELL!
  • Buyers
    • How we help our buyers find their perfect home.
    • Search for your home
  • Make the Wise Move
  • Client Reviews
    • Places to review me

Shopping for a mortgage.

12/15/2012

15 Comments

 
First, congrats on shopping the rate.  That is a great first move.  Too many people overlook this altogether.  Loan officers are typically paid a commission by the lender to sell you a mortgage.  The higher the rate, the higher the yield split, OR commission for the loan officer. 

This is mainly focused at borrowers looking to buy a home.  However, anyone looking to get a mortgage of any kind would benefit to read through.

#1) Know that if you are purchasing a property, there is some risk if the mortgage company does not get the job done.  Real estate contracts have a closing date on them.  There is typically a seven day unilateral extension option on standard GAR contracts.  However, after that, your earnest money will be in jeopardy.  So, if your lender cannot close on time, you could lose the earnest money and the right to buy the house.

#2) Know that if you are shopping today and can't lock today, that you will need to shop again when you have the property to get the lowest rate.  Why? 

Well, first, there are some loan officers that will lie about what they can do today, so that they undercut everyone else you are talking to.  Suddenly, those other names go in the trash, and when you go to lock in the rate, they have no competition at that point.

Second,  there are times the lender is trying to 'buy' the market.  In other words, one lender may be less right now, but in two weeks, another one might be.  Lenders, like every other business have a maximum capacity.  When they get to that point, they may raise their rates a little to increase the margins to pay overtime, temp workers, or just to make it worth it to put additional stress on their system.  If a lender is slow, they may lower their rates just a tick to keep the loans coming in.

#3) There are direct lenders and mortgage broker.  A direct lender is a company that will be handling the entire process.  A mortgage broker has the ability to shop many different mortgage companies.  So, which is better?  A mortgage broker can often find the best rates.  (they may also use that to just put extra money in their own pocket)  However, mortgage brokers will often go with whatever company is giving them more profit for the lowest rate.  If it is a difficult company to work with and your loan may not get done in time, many of them don't factor that in.  Smaller direct lenders like Guarantee Mortgage and Brand Bank tend to have good rates and the ability to close on time, 99.9% of the time.  (Especially if you have a good loan officer.)  Larger banks are often the worst of both worlds.  I have one specific large lender that I would never advise anyone to use.  They nearly cost one of my buyers their earnest money TWICE.  I won't say their name, let's just call them Stank of Amerika.   If you are considering using a mortgage company that rhymes with this...reconsider.

#4) When you get locked, ask for a copy of the lock sheet.  Otherwise, the lender is playing roulette with your money.  They are hoping rates go down, so they can make more money.  Most, however, will not eat the difference if rates go up.  They will call and make up an excuse as to why your rate is different.  And, you may be two weeks into the process and need to close to save your earnest money and get the house you want.

#5) There are new regulations that will protect you somewhat compared to five years ago.  These keep loan officers from making a mint off of you.  However, that is very limited and there is a lot of wiggle room.

#6) And, this is very, very important.  If you intend to be in the house long term, especially if it is the entire term of the mortgage, shop by the APR.  The APR is the actual cost of the loan to you.  Lenders can charge points and fees, and all sorts of different things as profit centers.  A 3.5 interest rate with no points and low fees is most likely a better deal than a 3.375 interest rate with a 1 point origination fee.  The APR factors in ALL costs for the length of the loan.  This can make it MUCH easier to cut through all the fees and charges on the quotes.  

#6a) If you are planning to move in less than ten years, and the lower APR has higher fees up front, then you have more work to do.  If the lower APR has higher up front fees, then take the additional fees and divide it by the amount of money you will save per month.  So, if one payment is $25.00 per month less, but it costs you $2500.00 more to get the loan.  You will break even in 100 months.  So, if you plan on moving in less than 8 years, it would be smarter to go with the one that has the fewer upfront costs.  
15 Comments
payday loans link
2/17/2013 04:55:11 pm

Borrowers should contact with a good loan officer for getting this mortgage Loan at lower interest rate. Loan officer plays an important role in the finance industry. These Loan officers are generally paid a commission by the mortgage loan lenders to sell their mortgage loan products.

Reply
mortgage refinancing link
4/23/2013 10:16:29 pm

Everything related to mortgages and refinancing.

Reply
VA mortgage reviews link
4/24/2013 12:19:17 am

If you’re buying a home or simply refinancing, the first decision you need to make is where to obtain financing.

Reply
mortgage company buyout link
5/10/2013 07:54:48 pm

At very low interest rates that you can now get a loan to buy a house.

Reply
http://vamortgagespecials.com link
5/13/2013 08:17:25 pm

Unique offer with which you can get a mortgage loan for a home purchase.

Reply
realtors in louisville ky link
5/14/2013 09:26:09 pm

I have recently bought a house in louisville ky with mortgages.

Reply
http://www.bondage-society.com/us/california-dominatrix/bdsm-glendale.shtml link
10/10/2013 06:32:19 pm

Great blog post, thanks for posting this.

Reply
BDSM Glendale link
10/14/2013 05:03:27 pm

Found your site through Weebly and wanted to say hi

Reply
BDSM Glendale link
10/15/2013 01:33:05 am

Nice blog, just wanted to say I found you through Google

Reply
hong kong company formation link
3/1/2017 04:29:38 am

This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post.

Reply
Corals at Keppel Bay link
11/23/2017 11:11:12 am

This article examines how to design vinyl banners that will effectively market a real estate agency in a highly visible way. It covers what material and size to order, what the message should say, and how the signage should look.

Reply
Second Citizenship Dominica link
2/19/2018 10:04:27 pm

At present, the real estate in Myanmar is a seller's market. In fact, the Myanmar Survey Research has released its 2012 report about the increase in the real estate price in Yangon. According to the report, the price of land has reached nearly five times higher than in 2002. Actual prices of expatriate residential properties and corporate offices also increased quite aggressively within an 18-month research period by several real estate experts.

Reply
Best Realtors In Surrey link
7/21/2018 04:27:38 am

Your home is most likely to be your most valuable asset, which is why when it comes to buying or selling it is no surprise that most people enlist the help of a professional Real Estate Salesperson to take care of the sale. When choosing a Real Estate Agency it is important to do your homework first so that you choose not only a company but a salesperson that you trust to work hard to get you the best result possible.

Reply
Location of Farrer Park link
12/3/2018 02:46:36 am

Love what you're doing here guys, keep it up!..

Reply
prudentialmagnoliarealty.com link
8/17/2020 12:35:15 am

Thus, the role of real estate property advisors is a very crucial one as they can help an investor make a decision about a piece of property worth hundreds and thousands of money.

Reply



Leave a Reply.

    RSS Feed

    David and Amanda Blanton

    Make the Wise Move!

    Categories

    All
    Alpharetta
    Appraisal
    Assessment
    Avoid Foreclosure
    Braselton
    Buford Ga
    Buyer Tips
    Choosing A Real Estate Agent
    Cumming
    Dacula
    Duluth
    Financing
    Flowery Branch
    Foreclosure
    For Sale
    Ga
    Grayson
    Gwinnett County
    Hoschton
    Jackson
    John Maxwell
    Johns Creek
    Keller Williams
    Lawrenceville
    Lender
    Listing
    Loan Modification
    Loganville
    Mall Of Geogia
    MI
    Mortgage
    Mortgage Insurance
    Nocross
    Peachtree Corners
    PMI
    Private Mortgage Insurance
    Property Tax Assessment
    Property Taxes
    Real Estate
    Real Estate Agent
    Real Estate Market
    Restaurant
    Review
    Seller Tips
    Shopping For Mortgage
    Short Sale
    Snellville
    Sugar Hill
    Suwanee

    Testimonials
    557886
    ' David is awesome to work with. He knows the area very well. He is extremely responsive, always took my calls and answered my emails and txts. He truly ... more '
    5.0/5.0
    by philipkupersavage
    557657
    ' David was extremely helpful.....We were very picky buyers & he never pressured us to look at a house outside of our parameters or place an offer... he ... more '
    5.0/5.0
    by dwcourter
    309784
    ' Mr. Blanton helped us find the home of our dreams and he did by listening to what we wanted. He taught us about the housing market, guided us in the ... more '
    5.0/5.0
    by user30821228
    Zillow
    David C. Blanton - Agent at Keller Williams Realty

    Archives

    May 2016
    February 2016
    June 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    November 2013
    September 2013
    August 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    July 2012

    Categories

    All
    Alpharetta
    Appraisal
    Assessment
    Avoid Foreclosure
    Braselton
    Buford Ga
    Buyer Tips
    Choosing A Real Estate Agent
    Cumming
    Dacula
    Duluth
    Financing
    Flowery Branch
    Foreclosure
    For Sale
    Ga
    Grayson
    Gwinnett County
    Hoschton
    Jackson
    John Maxwell
    Johns Creek
    Keller Williams
    Lawrenceville
    Lender
    Listing
    Loan Modification
    Loganville
    Mall Of Geogia
    MI
    Mortgage
    Mortgage Insurance
    Nocross
    Peachtree Corners
    PMI
    Private Mortgage Insurance
    Property Tax Assessment
    Property Taxes
    Real Estate
    Real Estate Agent
    Real Estate Market
    Restaurant
    Review
    Seller Tips
    Shopping For Mortgage
    Short Sale
    Snellville
    Sugar Hill
    Suwanee

    RSS Feed

Powered by Create your own unique website with customizable templates.