Buyers who are shopping for a loan must read this page. Initial________ Date ________
The biggest reason people get turned down for a loan is poor credit. Reviewing your credit status and correcting any mistakes before applying for a loan can help you avoid surprises or disappointments. Consumers may request a copy of their credit report from one of three major reporting services:
Equifax: 1-800-685-1111
Trans
Experian: 1-888-EXPERIAN (1-888-397-3742)
A small fee may apply.
A home loan is a huge obligation so a Mortgage Broker must be professional, experienced, and devoted to the borrower´s best interests at all times. I suggest locking in the lowest fixed rates possible instead of teaser variable rates that can change. Make sure there are no pre-payment penalties so you can pay off the loan early if you can. Suggested book to read: "The Total Money Makeover, A Proven Plan For Financial Fitness" by Dave Ramsey http://www.daveramsey.com/home/ .
It is the buyer´s responsibility to interview and pick their lender. Mortgage Brokers are listed below for your convenience to interview for the job. Buyers should shop around for the most competitive loans. Do not give your social security number out, to check credit, until you have selected the lender you want to do business with. Compare Good Faith Estimates and APRs from several lenders. Keep the good faith estimate to compare it with the HUD-1 settlement statement at closing. HUD-1 statements should be available to the borrower for review before closing. Discrepancies are worth questioning. Buyers can refuse to sign if the original terms of the loan have been changed and can file a complaint against the Lender.
BUYER BEWARE... We are in a credit distressed world! The most important thing a buyer can do in todays market is to get loan pre-approved up-front so that the only thing needed for the bank with an offer is a property address (copy of an accepted offer) and an appraisal. The buyer has all the power to shop for the best loan rates BEFORE offers are made but after an offer is accepted there are deadlines that limit the time to competitively shop. Offers typically allow only 5 days to apply for a loan which is not enough time to shop for the best terms.
The dirty little secret about mortgage brokers is the incentives they get for selling loans at higher interest rates! You must tell them that you are competitively shopping for the best rates and terms. Being pre-approved ahead of time reduces the likelihood of last minute buyer concessions (higher interest rates, larger downs, bank fees, points, insurance, etc), and the likelyhood of delays in closing will be less.
The president of a local title company recently said it is normal in this market to see extensions, and 90 day closings for traditional/non-distressed home sales from buyers waiting for loan approval! Banks love to charge more when the buyer has no time to competitively shop!!! Bottom line is the buyer has the power to control the best terms and conditions when the loan is pre-approved, and will be in a stronger position to negotiate the best price with the seller.
Todays interest rates are phenomenal for those who are pre-approved so shop early for a loan. Mortgage brokers listed below are for your convenience. I have no current or past relationship including, but not limited to, a business or familial relationship with these lenders. Some of these have been praised by my past clients but it is up to the Buyer to interview the lenders and shop for the best rates.
Make sure the lender you pick can perform within the terms and conditions of a Purchase & Sale Agreement. They need to order the appraisal the same day inspections are satisfied, deliver a complete loan package to the underwriter the same day the appaisal is satisfied, overnight deliver signed closing documents, and close the loan by the closing date. The lenders need to ask for all the documentation they need from you from the outset, not the last day before closing. The loan lock needs to provide ample time to close plus any potential delays because the bank will charge for extending the lock. Once the loan is made will it be sold, and if sold how does that effect your loan? When you are interviewing Mortgage Brokers discuss these important performance issues with them....
Primary Residential Mortgage, Eric Stinson, 10000 NE 7th Ave, Suite 403, Vancouver, WA 98685, 360-213-0064, estinson@primeres.com
Paramount Equity Mortgage, 915 Broadway St. Suite 200, Vancouver, WA 98660 (In same building as Keller William's Vancouver office). Scott Mckenzie Haij, shaij@paramountequity.com, 360-816-9616, Cell 360-241-0090. (OR) Tami Kaye Hanson thanson@paramountequity.com, 360-816-9638, Cell 530-780-1518. (OR) James Michael Spooner jspooner@paramountequity.com, 360-816-9633.
MetLife Home Loans, Matt Elerding, 1200 NE 99th Street,
Summit Mortgage Corporation, Debra McElveny, 4317 NE Thurston Way, Ste. 140, Vancouver, WA 98662, 360-907-0335, FAX 360-397-2724, debram@go-summit.com .
I suggest using experienced "brick & mortar" "local" mortgage brokers but if you insist on checking out on-line loan options Economist Gary North says "What is the lowest rate anyone can get in your region? Do you know how to find out? It´s easy. Go here:www.realestate.yahoo.com/loans. I bought a house in 2005 using this service. I found the best rate there."
To help me prepare accurate home searches, and accurate offers I will need the following information from your lender: Loan type, amount of down payment, financing timeline, special loan cost provisions, and approved loan amount. This will usually come in the form of a pre-approval letter from your mortgage broker.