In this post, USDALoanInfoNewYork wants to talk about hiring a really good loan officer or Mortgage Lender in New York and the importance of doing that, especially when searching for a USDA Loan in New York.
We want to give you a real-life scenario that happened to a buyer who was searching for a mortgage lender in New York this week. This should serve as a sample to really drive home the point on how important it is to hire and make sure you get a really good loan officer.
USDALoanInfoNewYork believes that you should search for an honest mortgage lender, no matter where your house buying adventure takes you.
To get started with our Mortgage Lender example, we find ourselves taking a buyer call with what happened. One of our officers had just got back from vacation and found out that there was a problem with the USDA Loan in New York. The lender that the prospect had hired actually made an error which delayed three days of the process!
A mortgage is usually thought of as a home loan, but a mortgage is not a loan. You are not given anything by a lender through a mortgage; instead, a mortgage is a security instrument you give to the lender. The lender's interests in your property are protected through a mortgage document.
A mortgage is executed by two parties - the mortgagor (borrower) and lender (mortgagee). The mortgaged property cannot be sold or transferred to someone else until you pay the debt that releases the lien. The lien is created by the mortgage document and it provides security for the lender on the debt owed by you. Full title to the property stays with you, even though your loan is secured by a mortgage and you do have full ownership rights.
If the debt is not paid, the lender is given the right, through the mortgage, to sell the property to recover the money owed them. A foreclosure sale is the process used to sell property that has fallen into this category and because of the mortgage used for security, this process has to go through the court system. Judicial foreclosure is what this type of foreclosure is called.
A mortgage should not be confused with a deed of trust. Over half the states in the United States use a deed of trust, which acts as a means of security for the lender in much the same way as a mortgage, with a few exceptions. A deed of trust is recorded in public records, which lets everyone know there is a lien on your property. Whereas there are two people involved in a mortgage, a deed of trust involves three parties, the lender (beneficiary), a trustee and trustor (you). The trustee holds temporary title of the property until the lien is paid and released. The trustee is not allowed to take your property and there are laws in place to protect you against them doing so. The trustee has to be a disinterested party and usually attorneys will perform the responsibility of trustee.
If foreclosure becomes necessary, then a mortgage and deed of trust will affect you differently, as the property may be sold by the trustee. This is the trustee's responsibility if the loan becomes delinquent. He will be given proof of the delinquency by the lender and the lender will ask the trustee to start foreclosure proceedings. This type of foreclosure proceeding bypasses the court system and results in a much faster and cheaper way for the lender to foreclose.
You do not have the option of choosing which type of loan security you want, as this is decided according to the state where you live. But, it is essential you understand what type of lien is securing the debt for your property.
When purchasing a home, a mortgage broker provides a borrower with a program best suited for that particular individual. They are professional and can find a lender to meet your needs, even though you may have difficult requirements or special requests. A mortgage broker is regulated by state banking laws. A broker works for you, the consumer, in negotiating and processing loans.
When borrowing for the purchase of a house, the amount of money lent to you by the lender is called the mortgage amount and the amount of your monthly payment is determined by the term or number of years you pay back the borrowed amount. A term of 30 years is the most popular, as spreading out the payments over a longer period of time, reduces your monthly payment. The shorter the term, the higher the monthly payment, so keep in mind there are also 10 year, 15 year and 20 year terms.
Interest rates are on the rise again and this is something else to consider, when purchasing a home.
The Mortgage Lender wasn’t using the builders lender so what happened is the Builder was charging them $300 per day for every day they did not close.
The prospective client was getting hit with a $900 bill the good thing is they had a really good loan officer with a really good company and they basically stepped up to the plate and paid that bill!
Here, you might be thinking to yourself well yeah of course they should and you’re absolutely right. They should but, we have been on the end where these lending companies not they’re just like ‘hey we’re sorry this stuff happens it’s not our fault we’ll get the loan done as quick as we can’.
There’s situations, especially in this market right here in Pennsylvania that we’re in – meaning we are in a seller’s market – where, if you don’t close on time and there’s a backup offer that’s better than yours on a pre-owned home.
If that happens, they might just cancel the contract and they let it expire and take the other offer.
If you’re working with a builder or if it’s on a relocation company, there’s a per diem every day if you don’t close and it could wind up into hundreds if not thousands of dollars.
If you’re searching for a Mortgage Lender in New York, you need to make sure the lending company that you hire is:
-Understands the USDA Eligibility Guidelines
AND is someone who’s going to do the right thing. USDALoanInfoNewYork suggests that you always ask for references.
The best place to start is your real estate agent if they’ve been in the business a while they should have a really good relationship with a really good loan officer and mortgage lender company.
Mortgage Lenders in New York: Here’s how to Apply for a USDA Loan
Hi everyone, This is you Tampa BayRealtor Lance Mohr.
In this video I want to talk about hiring a really good loanofficer in the importance of doing that I want to give you a real-life scenariothat happened to one of my buyers this week to really drive home the point onhow important it is to hire and make sure you get a really good loan officeran honest company all right so I had a buyer call me upand what happened I just got back from vacation and I found out that there wasa problem with the loan the lender that he hired actually screwed up and it wasbeing delayed three days and he wasn't they were not using the builders lenderso what happened is the Builder was charging them $300 per day for every daythey did not close and so he was getting hit with a $900 bill the good thing isthey had a really good loan officer a really good company and they basicallystepped up to the plate and paid that and you might be thinking to yourselfwell yeah of course they should and you're absolutely right they should butI've been on the end where I've seen these lending companies not they're justlike hey we're sorry this stuff happens it's not our faultwe'll get the loan done as quick as we can and there's situations especially inthis market right here that we're in in a seller's market where if you don'tclose on time and there's a backup offer that's better than yours on a pre-ownedhome they might just cancel the contract and they let it expire and take theother offer or if you're working with a builder or if it's on a relocationcompany there's a per diem every day if you don't close and it could wind upinto hundreds if not thousands of dollars so you need to make sure thelending company that you hire is good is reputable is honest and someone who'sgoing to do the right thing always ask for references the best place to startis your real estate agent if they've been in the business a while they shouldhave a really good relationship with a really good loan officer and mortgagecompany I hope this helps please give me a thumbs up if you like these videos andif you have any questions at all don't forget to leave them in the commentsbelow have a wonderful day you.
Top Mistake People Make When Applying for a Mortgage | Home Loan Application Mistakes
What is the best loan program for a first-timehomebuyer? How's it going everyone, Matt Leighton welcomeback to another video.
In this video we're going to go over the bestloan program for a first-time homebuyer.
I'm here with Sean Glennon.
Sean, take it away, what's the best programfor a first-time homebuyer? Well, beauty is in the eye of the beholder.
So it depends.
Now there's a lot of first-time homebuyerpopular loan programs and it really depends on what you're capabilities are in terms ofdownpayment, whether or not you have gift funds to use toward the downpayment or closingcosts, what your income limit is, that's a big one.
How many people are going to be on the loan,because a lot of these first-time homebuyer loans, what the big difference is betweenthem and other typical loan products is that there are restrictions.
They don't want to be given 100% financingproducts to people who aren't making a ton of money and things like that so income limits,sales price limits, credit score limits, all that is going to be apart of these programsbut we can dive into some of the more specific.
Let me ask you this, if you are a Veteran,and also a first-time homebuyer, is it a no-brainer that the VA loan program is the best program? Yes.
Alright so obviously if you're a Veteran,first of all THANK YOU, and then go with the VA loan program, there is no competition.
So with that being said, let's just focuson conventional and FHA because with FHA 3.
5% down, compared to Conventional, you can goas low as 5%? Or can you go lower than that? There's actually a new loan program you cango lower.
When we talk loan programs, the first thingyou're going to want to do is get pre-approved to determine what you're qualifications areand what doors are opening or closing to you depending on whether you fit the bill forcertain programs.
100% financing, VA, USDA, and USDA is a ruralhousing loan so if you're looking in and around cities, it really won't be applicable to you.
And VA only if you're a Veteran; are goingto be your best 100% financing products.
Now there are certain loan programs in eachstate that usually have first-time homebuyer 100% financing needs.
In Virginia, VHDA is the one that comes tomind as the most popular.
But most people are going to fall into theumbrella as FHA or conventional loans.
FHA is going to be 3.
5% down and is very friendlyon underwriting guidelines.
Conventional is a little bit more strict,but recently they actually came out with a program that is trying to compete with FHA.
It's called Fannie Mae's Home Ready Programthat allows for a 3% downpayment instead of the typical 5% downpayment.
Yeah a lot of times you're seeing people diveto what's the lowest downpayment I can have? That has to be the best loan, maybe that'sright, maybe not because with FHA you do have the monthly insurance on the loan there'sanother program with the conventional.
And let me ask you this, are people re-financingout of these loans? For instance, I had a client a couple weeksago they went in with a VHDA loan which is Virginia-specific, so if you're not in Virginia,you may not be aware, but they went in with that and I don't know a week later or whateverthe minimum time is that you can re-finance, they said oh yeah, that's what we're goingto do.
Are you seeing this? Or is this kind of a unique situation? No, I've seen a lot of it.
What a typical game plan is for a lot of peopleis, a disclaimer that you can't always bank on re-financing because you never know whererates are headed.
But as long as rates stay solid or at leastin the range that we've seen them right now, or around where you originally purchased yourhome, it's very common for people to bite the bullet and get the VHDA or FHA loan whichcarries with it a little more in fees and mortgag insurance and things like that.
But it allows them to get in the propertywith very little out-of-pocket and then once they get a little equity in the property orsave up a little money, they try to re-finance into a conventional loan to eliminate someof that burden with the mortgage insurance and things like that.
Get themselves a much more healthy and manageablemonthly payment.
Yeah the VHDA loan program is becoming morepopular here in Virginia but sometimes with these loan programs it's really hard to getinto, you have to be making $82k - $85k, be born in a certain ZIP code, and be left handedand live on Main Street or something like that where it's like it shouldn't have tobe that hard.
Quickly go over maybe a broad overview ofwhat it takes to be eligible for a certain grant program like the VHDA.
Well some of these grant programs, most ofthem are all going to have income limits.
So that's the big one.
If you're making $250,000, there's a goodchance you're not going to qualify for the local first-time homebuyer and grant programs.
Income limits, sales price limits, heightenedcredit score minimums.
When they're giving out 100% financing, that'sa high-risk loan so they want to give it to borrowers that are well qualified.
There are a lot of niche things that go alongwith it and the grant program.
VHDA is a little more broad, but county and local grant programseven more, very niche, sometimes you're in a lottery with others.
It's a nice thing to have in your back pocketbut nothing I would recommend anyone bank on.
Good to know.
So we're going to wrap this video up withone final question.
But you know obviously this is more Virginia-centered,there's VHDA loan program, in your own state, there might be other grants available.
So maybe FHA is right for you or maybe talkto your lender and find out the grants available.
Sean my question is, if you were to imagineyour last 100 first-time homebuyers, out of those 100, what's the most popular loan programthat you're seeing for first-time homebuyers? I would say if you had asked me for any yearin the last 8 or 9 years I've been in the business, the answer would be FHA.
I would say since Fannie Mae last year rolledout there Home Ready Program with 3% down, most homebuyers do qualify for it and fallwithin the income limit.
The area median income limit, you can actuallylook it up on Fannie Mae's website.
As long as you fall under that, you qualifyfor, it does give a little more beneficial terms on the mortgage insurance terms, it'sa half percent lower on downpayment, and there's a little more flexibility with some of thethings that you can do down the line with the loan like remove the mortgage insurance.
I would say FHA, historically, Fannie MaeHome Ready Program recently.
Things are changing.
So FHA for the longest time was the best optionout there, it may still be the best option depending on your circumstance, but you mayknow the best option, but your lender will know the best option.
Be sure you're talking with local lendersout there and know all your options because a lot of things are changing in terms of guidelines,what I'll do is link and list a video up here in the corner that talks about recent changesin the market place that may affect which loan program that you being available to getinto and get a loan.
You got it out.
What movie is that from? Billy Madison.
Well on that note Sean, why don't you tellthe people where they can connect with you.
You can email me at sglennon@hstmortgage.
Comor call the office.
Myself or anyone else in The Glennon Groupwill be happy to answer your call and help you with any questions.
And my man Matt will hook it up down loan.
Thank you very much for watching.
Until next time, create a productive day.
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