What questions should I ask a mortgage lender in Buffalo ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.
USDALoanInfoNewYork is going to go through 10 different questions that you can ask your mortgage lender in Buffalo. Be aware that your USDA Loan or Mortgage broker will be getting the loan that you need and the service that you want.
The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.
How Much Will a Mortgage Broker Cost?
Most mortgage lenders in Buffalo actually work for free.
So it doesn’t actually cost you anything in order to do it.
They get money because they are paid by the banks when you successfully get a loan.
So they get a small commission of the loan that you apply for and if you get it.
Mortgage Lenders - How to Choose the Right One For You
So most mortgage brokers in Buffalo will work for free and it won’t cost you anything.
However, there are some mortgage brokers out there who do require deposits or who do require you to pay.
So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.
How much do Mortgage Lenders earn in commission from me and from my loan?
This is less to understand exactly how much they make.
You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.
But it’s more to understand whether or not they’ll be willing to give you this information.
A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.
A Mortgage Is Not A Loan
If they skirt around this issue and they don’t tell you how much they earn.
Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.
So, I’m just trying to establish whether or not this mortgage broker in Buffalo is someone that I can trust.
And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.
So ask that question and see how they respond.
Do Mortgage Lenders Invest Themselves?
Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.
However, if they are interested in property in Buffalo, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.
They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.
If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.
Choosing a Mortgage Lender That's Right for You
Some of the mortgage lender folk who work with people who are doing particular investment strategies.
So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.
>>> WELCOME BACK. WHETHER IT IS TIME TO OWN YOUR DREAM HOME, FINDING THE RIGHT HOUSE IS ONLY THE BEGINNING. >> FIGURING OUT HOW TO PAY FOR IT IS EVEN MORE IMPORTANT. JOINING ME NOW IS JEFF MCCARTHY AND PAT GOSA FROM FIRST BANK FINANCIAL CENTRE WITH SOME IMPORTANT QUESTIONS THAT YOU SHOULD WHEN YOU ARE LOOKING AROUND FOR A MORTGAGE LENDER. GOOD TO SEE YOU GUYS THANKS FOR BEING HERE. AS I MENTIONED FINDING THE HOME IS LIKE THE FIRST GOOD LIKE MOMENT. THAT'S WHAT YOU GOT TO DO, BUT AFTER THAT, KNOWING THE RIGHT QUESTIONS TO TALK ABOUT WITH YOUR MORTGAGE LENDER OR SUCH IS IMPORTANT. >> ABSOLUTELY. SO MANY PEOPLE SPEND YOU KNOW MONTHS LOOKING FOR THE DREAM HOME, THAT THEY ARE GOING TO RETIRE IN OR RAISE THEIR FAMILY IN, BUT A LOT OF PEOPLE DON'T TAKE THE TIME TO FIND THE RIGHT MORTGAGE LENDER FOR THEM. IT'S ALMOST AN AFTERTHOUGHT FOR A LOT OF PEOPLE. THAT CAN BE A BIG MISTAKE IN THE PROCESS. >> WHEN SHOULD PEOPLE START LOOKING FOR THE RIGHT LENDERS? IS THERE A SPECIFIC TIME? >> I TELL YOU, SOONER THAN LATER BECAUSE, YOU WOULD HATE TO HAVE TIFFANY SOMEBODY FIND THEIR DREAM HOME AND FIND OUT LATER THEY DON'T QUALIFY FOR THAT MORTGAGE LOAN. THE SOONER CAN YOU GET IN TO TALK TO A LENDER THE BETTER. AND PREPARE. WHETHER IT IS YOUR FIRST TIME BUYING A HOME OR FOURTH TIME, OUR GUIDELINES ARE ALWAYS CHANGING, THE LOAN PROGRAMS CHANGING, SO IT'S GOOD TO GET IN AND TALK ABOUT YOUR INDIVIDUAL SITUATION WHETHER IT BE INCOME, CREDIT, DOWN PAYMENT WHAT HAVE YOU. >> I KNEE BEING PRO APPROVED AND KNOWING WHAT YOU CAN AFFORD ARE IMPORTANT. WHAT ARE THE VERY FIRST THINGS YOU SHOULD ASK YOUR LENDER? IF I COME IN TO MEET WITH YOU OR ONE OF YOUR SALES STAFF WHAT SHOULD I BASICALLY SAY? >> USUALLY. PEOPLE HEAR FROM THEIR FAMILY AND FRIENDS AND SAY FIND OUT WHAT THE RATES ARE AND CLOSING COSTS ARE. A IMPORTANT ASPECT OF COURSE. MORE IMPORTANT IS REALLY, ASKING ABOUT THE DIFFERENT LOAN PROGRAMS THEY MAY QUALIFY FOR. ALSO THEIR INCOME. YOU KNOW WE HAVE TO SOURCE THAT. IS IT JUST W2 INCOME, COMMISSION INCOME. WE NEWS INCOME THEY ARE TRYING TO COUNT TO QUALIFY. SAME WITH ASOCIETIES WE HAVE TO TRACK THOSE ASSETS A PAPER TRAIL WHERE ARE THEY COMING FROM. THE SALE OF A HOME OR ASSET. MONEY THAT IS GIFTED TO THEM. WE HAVE TO NAVIGATE THROUGH ALL OF THAT. THEN GIVE THEM A GREAT IDEA WHICH LOAN PROGRAM IS BEST FIT FOR THEM. >> THERE ARE DIFFERENT LOANS THAT CAN HELP YOU THAT ARE SO IMPORTANT. WHY DO YOU THINK IT IS IMPORTANT THAT A LENDER HAS EXPERIENCE? >> I THINK A LOT OF TIMES BECAUSE THEY ARE ASKING THOSE QUESTIONS. THEY ARE ASKING ABOUT THE INCOME, THE ASSETS AND WHAT HAVE YOU. THEY KNOW THE LOAN PROGRAMS, THE LOPE GUIDELINES. YOU WANT SOMEONE THAT IS VERY EXPERIENCED IN THOSE TO ASK THE RIGHT QUESTIONS NOT SO MUCH THE CUSTOMER ASKING YOU THE QUESTIONS, BUT SO THEN YOU CAN CREATE THAT PRODUCT FOR THEM, THAT FITS THEIR NEEDS. >> UH-HUH. DO YOU SEE OFTENTIMES PEOPLE COME IN AND THEY DON'T REALLY KNOW WHAT TO ASK OR THEY DON'T KNOW WHAT THEY CAN AFFORD? >> EXACTLY. >> I BET. >> I REALLY SUGGEST PEOPLE TO GET IN AND GET PREQUALIFIED. EVEN BETTER TO GET PREAPPROVED THEN IT GOES TO THE UNDERWRITER TO MAKE SURE WE HAVE ALL OF OUR DUCKS IN THE ROW. >>> A LOT OF PEOPLE I WOULD GUESS JUST GO IT THEIR PRIMARY BANK. THEY THINK OKAY I ALREADY HAVE AN ACCOUNT WITH THESE PEOPLE THAT WORKS. I'M JUST GOING TO GO THERE BECAUSE I'M FAMILIAR WITH IT. THAT'S NOT ALWAYS THE RIGHT DECISION. CORRECT? >> IT VERY WELL COULD BE. IT MIGHT NOT BE YOU'RE RIGHT. DOES THAT LENDER USE GRANTS THAT ARE AVAILABLE TO FIRST TIME HOME BUYERS? DO THEY DO CONSTRUCTION LENDING. COULD THEY DO PORTFOLIO LENDING. FHA, VA. DO THEY HAVE ALL OF THE COATS IN THE RACK SO TO SPEAK WITH THE DIFFERENT LOAN PROGRAMS OUT THERE AND DO THEY UNDERSTAND THEM IF THEY DON'T DO A LOT OF THEM THEY MIGHT NOT BE THE BEST CHOICE. >> UH-HUH. >> ARE THEY COMPETITIVE WITH THEIR RATES OF COURSE AND CLOSING COSTS. >> LIKE YOU SAID THE FIRST THING PEOPLE THINK OF IS WHAT IS THAT PERCENTAGE AT. THAT'S WHAT IS MOST IMPORTANT. IT IS NOT ALWAYS WHAT IS THE MOST IMPORTANT PIECE OF IT ALL. WHAT DO YOU GUYS THINK SETS YOU APART AT FIRST BANK FINANCIAL CENTER? >> FOR ME MY SALES TEAM. WE HAVE AN EXPERIENCED GROUP THEY KNOW TO ASK THE RIGHT QUESTIONS. THEY ALSO HAVE A PASSION FOR THE BUSINESS LIKE I DO. THY THINK THEY WANT TO HELP THAT CUSTOMER HAVE A GREAT EXPERIENCE THROUGH THE LOAN PROCESS AND, NAVIGATE AGAIN, TO BE YOU KNOW LIKE A FUN EXPERIENCE TOO. >> OWNING HOME IS STILL I THINK THE AMERICAN DREAM WHETHER IT IS A CONDO, A HOME, A TOWN HOME WHATEVER THAT MEANS TO YOU, OWNING I STILL THINK IS THE BIGGEST THING. YOU HAVE A GREAT OFFER FOR PEOPLE WHO ARE WATCHING TODAY TO WORK WITH YOU GUYS. >> WE DO FOR MORNING BLEND VIEWERS IF THEY GO TO FVFCWI. COM/300 CLOSING THEY CAN DOWNLOAD A COUPON FOR $300 OFF CLOSING COSTS. THEY CAN USE THAT MONEY FOR PAINT OR A RAKE, TO RAKE NEW LEAVES IN THEIR YARD. WHATEVER THEY NEED FOR THEIR NEW HOME. >>I LOVE IT IT'S GREAT YOU GUYS. PEOPLE CAN COME IN AND MEET WITH ANY OF YOUR GREAT STAFF. FIND OUT A LITTLE MORE ABOUT WHAT THEY ARE QUALIFIED FOR OR DIFFERENT TYPES OF LOANS THAT WILL HELP THEM GET THE DREAM HOME THEY HAVE ALWAYS WANTED. >> ABSOLUTELY. >> HERE'S INFORMATION FOR FIRST FOR FOR FOR FIRST BANK FINANCIAL CENTER. THERE IS A COUPON ON THERE AS JEFF MENTIONED FOR $300 OFF OF CLOSING COSTS. MAKE SURE YOU DO THAT, GET THOSE $300 AND LIKE YOU SAID YOU CAN USE THAT FOR PAINT OR WHATEVER YOU WANT MAYBE TOWARDS THE NEW.
So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.
What details do Lenders need from me?
It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.
You might need pay slips; you might need proof of identity, all of that sort of stuff.
If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.
How To Pick A Mortgage Lender When Buying A House
Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.
So the easier you make it for them, the more likely you are going to get better service.
What can I do as a client to make this go as smoothly as possible?
You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.
And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.
They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.
You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.
And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.
So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.
You want to see them get paid.
You want to see them do an easy mortgage so they get paid easily.
And so you can develop a relationship into the future.
Which lenders can I borrow the most from?
Most people go into a mortgage broker looking for the cheapest interest rate possible.
What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.
However, they might not showy ou banks that will lend you more money than you potentially need at the moment.
Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.
Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.
Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.
And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.
Because, yes, interest rate is important but how much you can borrow is also important as well.
Can I see a full list of my borrowing options?
Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.
And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.
You’re probably going to still choose from one of the top three ones.
But you just want to see that they’re giving you the full amount of information.
And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.
And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.
So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.
Will this put a mark against my credit file?
And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.
When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.
And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.
So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.
But if you’re getting lots and lots of marks against your credit file, then that could be an issue.
So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.
How soon can I revalue or borrow again?
So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.
There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.
So, speak to your mortgage broker about the lenders that will allow you to revalue faster.
And basically, this will give you an idea of how quickly you can revalue to consider going again.
You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?”
Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.
Will My Loans be ‘cross-collateralised’?
Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.
And basically, you want to avoid this at all costs from what I hear.
And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.
So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.
So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.
If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.
You can see what high rental yield properties look like that are likely to generate a positive cash flow.
Did You Know – You Can Get Pre-Approved for a USDA Loan in Buffalo?
Congratulations, on your decision to start the process of finding home lender. Now that you have made this life changing decision how do you differentiate between a good mortgage lender and a bad mortgage lender? To answer that question, first you will need to know what the qualities are in a good mortgage provider. Below is a list of things that you might find in a good accredited home lender:
a) They will provide information on the widest choice of options and terms available for your specific needs.
b) Your mortgage lender will serve as a personal guide in the mortgage marketplace.
c) They will counsel the homebuyer on the available financial alternatives.
d) A great lender will become creative to finding you solutions upon the unavailability of a traditional bank mortgage.
e) They will deal on your behalf with all other potential lenders.
f) A good home lender will then arrange for a mortgage loan that is best suited for your needs.
g) They will also arrange for the best rates for the home mortgage loan that you have chosen.
With that information, it is easier to search for a good sincere and honest mortgage lender. But, not stopping at that list of qualifications there're some extra things that will add to the list of benefits. Another advantage is that with certain types of loans a mortgage company may act as a mortgage lender, on others, it may simply play the role of a broker. A Mortgage lender may also operate from different locations, at certain times, they prove to be more beneficial than your local lender. Since the Internet has become everyone's favorite informational portal, lenders no longer operate within their own territories; instead, a nationwide service is what they look forward to. Providing future customers with more options, as that particular lender is well resourced.
Not stopping, there a good home lender does more than just going for the best loan rates available for their future homebuyer. For instance, if you were self-employed, you might not qualify for a traditional bank mortgage, for whatever the reason might be. Sometimes it might not be a fault of your own, but the financing bank is just unwilling to finance the home loan, because they think it will be a risk to their institution. This is where the home lender will step in, and act as liaison, or as a consultant if a cash-back, or a second mortgage is the requirement.
Here's a little bit of information on the different types of mortgage lenders, and providers:
I. Hard moneylender: They are known for short-term mortgages and in most cases offers worse rates than a traditional banking organization.
II. Traditional Mortgage Providers: Banking organizations and licensed mortgage dealers, operating both online and offline.
As stated earlier in the article a mortgage provider also works as a broker at times, it's important for the future homebuyer to know what will be covered within the brokerage service.
Apart from chalking effective marketing plans to attract future homebuyers, a mortgage provider also does the assessment of the borrowers circumstances including assessment of credit history, verifies affordability through documentation or alternative processes, and assesses the market to find a suitable mortgage loan fitting the future homebuyers requirements. Which will also help if the mortgage provider has to act as a liaison on your behalf.
Finally, an accredited home lender must take into consideration the affiliation from the top wholesale institutions, namely, Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage (Freddie Mac). Mortgage loans given out by an accredited home lender must comply with their jointly derived standard application form guidelines. This enables a home lender to become an eligible seller for the wholesale institutions and offer a larger scale of services to their future homebuyers, or investors. Packaging mortgage portfolios in the conformity that occurs with the secondary market does this. The agreement maintains the ability for the mortgage lender to sell mortgage loans for cash, so that if there's a drop in the interest rates and the portfolio features a higher average interest rate, it can be sold through a banker for a larger profit.
Now the next big question: When should you start looking for a mortgage lender?
To simply put it, when you feel that you're ready to take the steps to mortgage a property, and pursue ahead to get a mortgage loan that will make your life dreams a reality. To be honest no one can determine that for you, only you will know when you are financially, emotionally, mentally, and everything else that comes along with the "ally's" when you will be ready.
Good Luck on find the right accredited home lender. I hope that they will be able to assist you in purchasing the home of your dreams!
If you found this article beneficial to you, please share it at your favorite social bookmark site or email this article to a friend.
How To Pick A Mortgage Lender When Buying A House
Hi everyone this is your Tampa Bay RealtorLance Mohr.
In this video I want to talk about how tochoose a mortgage lender and that I'm going more specifically go over mortgage brokersversus banks versus credit unions.
Tell you the difference between those.
Tell you the pros.
Tell you the cons and then we're going togo over a little bit about what questions you need to ask the lender to make sure youget a really good mortgage lender for you.
So let me start off talking about differenttypes of institutions where you could get home loans.
Through a lot of times when people think aboutbuying a home they think.
Hey, let me just give my local bank.
Bank of America, Wells Fargo a caller whenthey give my credit union their call or what's the whole thing with mortgage brokers? What's a mortgage broker? How does that work? What's the difference between a mortgage brokerand a bank? The difference between that and a credit union.
So I'm going to go over all this.
Let me first start off with credit unionsand you know I'm just going to give you how I see it because I've been in this industryfor over 20 years prior to being in real estate as an agent.
My prior life was a mortgage banker and that'swhat I did for a number of years.
I'm going to give you things how I see.
I'm not a big fan of the credit union.
I think credit unions are great.
They do car loans that you do checking savingsCDs much like a bank.
They have really really good customer service.
They really care about their members and Ithink that's great.
The problem is I don't really think the trainingthere and I'm a person that really really believes in knowledge.
You know I'm not saying that if you work witha credit union or you know someone works with the credit union in or go through a creditunion.
Not saying this about all credit unions.
I'm using this in a general sense.
They just don't have the best training inthe world.
The other problem with credit unions is thepeople who are doing the loans.
The loan offices the credit union a lot ofthem are strict salary.
If they're not strict salary, their salaryplus bonuses and I'll get to this in a little bit later.
So that's why I'm not really a big fan.
Years ago when I used to be in mortgage banking.
I actually used to go to credit unions.
They were some of my clients to get loansfrom because they didn't have all the knowledge and they were telling people they weren'tqualified because they could not work with them.
Now the good thing about credit unions becausethey are so customer service oriented they would pick up the telephone and say hey Lancewe can't do this loan can you do it? So at least they're going to do that.
Banks? Nope, they're not like that.
This is one of the things with banks.
Banks have a lot of a lot of good advantages.
As a matter of fact, if you're going to beusing bond money.
You're probably going to be using banks.
If you need construction loans you're probablygoing to be using banks but banks like credit unions.
They're a jack of all trades.
They're not a master of one.
They're doing the checking, they're doingsavings, they're doing CDs, they're doing car loans, boat loans you name it.
They're doing anything and everything andwhen you tend to go to the loan officers and a lot of banks not all of them.
So again you know if you work with a bankdon't get mad but I know a lot of people that have worked for banks and what happens isyou they get what's called the foot traffic.
They're not going out there hitting the pavementevery day.
A lot of the loan officers where the banksare just sitting in the bank and just waiting for the business to come to them.
They're not going out.
It's sort of like I always look at our industry.
Are you have the lion and you have the gazelle.
Oh, there are a lot of lions with banks butmost of them are gazelles.
They're sitting back.
Again banks pretty much most of the loan officersare on a salary plus a Bonus.
So you know they're not straight commission.
That's one of the things.
Now when it comes to banks again there aretheir pros.
When it comes to banks you have to understandthat they're only one when lending their money.
This could be a problem if you go in and maybefigure on an FHA loan and maybe that's not really very good in their wheelhouse.
They might tell you well you're not qualifiedfor a loan.
They're not going to say well you could probablyget a loan but you just can't get one through us that's the problem because you're onlyusing their money.
If you're a square peg and they have a roundhole you're going to have a hard time fitting in that and that's the unfortunate thing.
You know there's a lot of fallout.
There’s a lot of people banks tend to wantthe cream of the crop buyers.
If you're walking in with 750 credit scores.
Putting down 20% your salary and employeegreat but what happens if you don't fit into that? You may be working with a bank.
You may not know the thing about banks isthey're generally a little higher on the interest rates than say a mortgage broker but they'rea little bit what lower on closing costs because everybody's in-house and that's the nice thingabout banks is their in-house.
Now I will say this if you are going to usea bank.
If you’re going to use a credit union, ifyou are going to use a mortgage broker get someone local don't go with Wells Fargo andgo to some 800 number or you walk into Bank of America and they say oh let me give youthis 800 number Des Moines Iowa and you're what I am in Tampa or somewhere else.
You want someone local.
Out of sight out of mind.
You want someone if things aren't going yourway you could go in there and pound on their desk and say what the heck's going on.
So just keep that in mind but you know themgenerally everybody's in a localized area.
You'll have your underwriter there.
You have your processor there.
They do have some programs that they havea little bit more flexibility on because they could just decide not to sell that but theymight keep it they might keep it in their portfolio but generally speaking the mainthing I would probably rather choose and I'll get into mortgage brokers in just a littlebit.
Why I tend to like mortgage brokers betterbecause a bank their loan officer is getting paid usually a salary plus a bonus.
That’s the opposite.
So, now let’s talk about mortgage brokers.
Mortgage brokers they're basically prettymuch all of them out there.
It's sink or swim.
They don't get paid unless they find a wayto say yes.
So if you walk in like when I was in mortgagebanking and brokering.
If you walked in and I'm with the broker andyou were on an FHA loan program I'm probably going to have one lender for that.
That it's going to be really really focusedon FHA.
If you're VA you're probably going over tothis later.
If you're on maybe a conventional in a fightfor sit down you're over here.
If it's a 20% down you're over here.
If it's a jumbo it's this linker if you goin and maybe you have low credit scores you're over with this lender right here.
So they don't have just their money.
They have everybody's money now.
I know you go into these brokers and they'relike, we have 50 lenders.
Let’s face it most mortgage brokers willonly use two or three.
They'll probably have five to seven at anyone time but they are very efficient because this is all they do and they don't get paidand unless they find a way to say yes that's why I sort of break it up.
Is there are the lions and there are the gazellesand I would have rather have someone that is on a straight hundred percent commission.
That if they don't find a way to say yes theydon't get paid.
That's a huge motivator.
So there is the thing with a little bit differentlike the banks.
Keep in mind brokers broker out so they'regoing to broker out to a bank.
They could even be broken out to the samebank you're getting the quote from.
It's pretty rare but it could happen but they'regoing to have usually a little bit more costly because they're going to have the underwriterin-house and I mean in-house but they're going to charge for that.
They're going to have the processor that therebeen a charge for that.
So they're going to have a little bit morecost but they get their pricing and wholesale pricing not retail like a bank.
It’s usually going to equal out so there'sand if you're looking at going with bond money you pretty much never going to go with a brokerif you're looking to get in a construction loan.
You're probably not going to go with the brokerbut again it's all about choosing the right broker.
It's all about choosing the right loan officerand you know that's what you need to do.
You need to choose the right person.
So I did a video if you want to know how toget the best interest rate I'll put it up above.
You could look at it but let's go over whatyou really need to do when it comes to choosing a loan officer.
You want to always start off with your realestate agent.
First know maybe you could get a recommendationfrom your real estate agent you could get a recommendation from friends, co-workersbut dig a little deeper.
Don't just get that recommendation.
Ask enough to say why you think this loanofficer is so good.
Why are you referring me to this person? What is it about them that makes them so good? You can also go and take a look at sites likeYelp.
Go to their LinkedIn page check their website.
Read up on them but overall loan officersare horrible at marketing so don't hold that against them.
I know when I was a loan officer I wasn'tthe best marketer in the world.
So you know you definitely want to dig a littledeeper and ask him and then when you're talking to them just like an interview in a real estateagent.
You need to ask them two questions at least.
These two questions why should I work foryou and why should I work for your company? Basically, let them tell you what makes themgood.
Let them tell you why you should be workingwith them.
If they don't have an answer to those questionsyou really have to wonder but you know you definitely talk to your real estate agent.
That's a good source and just make sure theloan officer knows what they're doing.
Yeah I mean feel free to ask them what trainingyou have.
I mean I never got this when I was in a loanoffice.
When I was one officer but I had no problemI don't have it when people ask me.
This is a real estate agent if they're interviewingme or asking about my experience or how long I've been in the business or why they shouldwork with me or what makes my company good.
It's not as important as a realtor but whatthe loan officer it's everything if you go into the better business bureau and they don'thave a good rating.
You really have to wonder if that someonewho you want to work with.
So do these and you're going to be good togo but definitely pick loan officer at the end of the day get someone that you trustto get someone that you know is knowledgeable.
Who's been in the business that you feel hasthe proper training because one thing I discuss in my video? How to get a really good interest rate isit's more about the loan program.
If you're in the wrong loan program the interestrate doesn't matter and if you choose a loan officer that doesn't understand differentloan programs and they put you in the wrong one program.
You could have a great interest rate thatone program but it may not be the greatest interest rate you could get or you need.
If you like these videos give me a thumbs-up.
If you want to subscribe to my channel hitthe subscribe button hit the belly button and you'll get notified of my new videos.
I wish you all the best of luck.
If you're looking for a realtor in Tampa BayI would love to help you.