Looking for the Top Mortgage Lender in New York City?
When you’re searching for your first home, you’re also searching for your first mortgage lender.
Now, it’s difficult to make specific recommendations on lenders because it’s way too tough to stay up to date on the many thousands of lenders who work in the New York State Area
However, USDALoanInfoNewYork can give you some very useful tips for how to approach your search for a lender.
When you’re looking for a mortgage lender you want start off by talking to a mortgage broker who has a good reputation in your area.
What questions should I ask a mortgage broker?If you're dealing with a mortgage broker there's some questions that you should ask both onyour first meeting with the mortgage broker and throughout working with your mortgagebroker to make sure that you're getting the best service possible.
I'm going to go through10 different questions that you can ask your broker to make sure you're getting the loanthat you need and the service that you want.
The first question that I think everyone shouldask a mortgage broker is a pretty straightforward one.
And that's, "How much will it cost me?"Most mortgage brokers actually work for free.
So it doesn't actually cost you anything inorder to do it.
They get money because they are paid by the banks when you successfullyget a loan.
So they get a small commission of the loan that you apply for and if youget it.
So most mortgage brokers 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 requireyou to pay.
So, it's important to ask, "How much will this cost me?" when assessing whichmortgage broker you want to go with.
Another question that you want to ask themortgage broker is simply, "How much do you earn in commission from me and from my loan?"This is less to understand exactly how much they make.
If you want to understand how muchmortgage brokers make, I've done an episode on that, which you can check out at onproperty.
And you can see what percentage of commissions they make and things like that.
But it's moreto understand whether or not they'll be willing to give you this information.
A transparentmortgage broker is someone that'd be willing to give you this information and you knowthat they have your best interest at heart.
If they skirt around this issue and they don'ttell you how much they earn.
Well then that would send out red flags for me because Ican't trust them to put my best interest at heart because there are some circumstanceswhere one loan will earn them more money than a loan that could potentially be better forme but not as good for them.
So, I'm just trying to establish whether or not this mortgagebroker 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 youcan trust them.
So ask that question and see how they respond.
Question number three is, "Do you invest yourself?"Now, I don't think a mortgage broker has to be a property investor in order for them tobe able to get you a good loan and for them to help you successfully invest in property.
However, if they are interested in property, if they do invest themselves, then that isgoing to go a long way to help you because they understand what it's like to be in yourshoes.
They understand what you're trying to get out of this and they've done it themselvesso they can help you miss some of the pitfalls and things like that.
If they don't investthemselves, then I would want to ask them, "Have you worked with many people that investin property?" Because as mortgage brokers, some of them just work with people who arebuying their own home.
Some of them work with people who are doing particular investmentstrategies.
So, some might work with people who invest in positive cash flow propertyor who invest in rural areas, who invest using developments.
So I would want to find a mortgagebroker who either had that experience themselves or who had clients that they had got similardeals for 'cause that way I know that they can negotiate on my behalf and they can getthis deal across the line.
The next question will be, "What details doyou need from me?" It's one thing to call up a mortgage broker and just to get an estimateof 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 mightneed pay slips; you might need proof of identity, all of that sort of stuff.
If you ask themupfront, "What details do you need from me?" And when you go to your meeting with themyou actually provide them with those details, well that just makes things so much easier.
Remember, a mortgage broker is only paid once the deal goes through and once you actuallyget financing.
So the easier you make it for them, the more likely you are going to getbetter service.
Which leads me to my next question is, "Howcan I make your life easier?" Or "What can I do as a client to make this go as smoothlyas possible?" You have the goal of getting financed for your property, the mortgage brokerhas 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 Imake things easy for you?" They're the experts; they know what they're doing.
They can tellyou exactly what they need and then you can work hard to provide that for them so thatthey 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 thatwhen there's difficult customers that you don't want to deal with, it just makes lifeso much harder and you don't want to work hard for those people.
And when there's customerswho are really nice to you and who try really hard to help you provide them with the serviceyou provide, you will bend over backwards to do anything you can for those customersto get them across the line, to help them as much as possible.
So, be one of those customersthat the mortgage broker wants to bend over backwards to help you because you have theirinterest at heart as well.
You want to see them get paid.
You want to see them do aneasy mortgage so they get paid easily.
And so you can develop a relationship into thefuture.
So ask them, "How can I make your life easier?" Next question is, "Which lenders can I borrowthe most from?" Most people go into a mortgage broker looking for the cheapest interest ratepossible.
What is the cheapest interest rate I can get? And the fact of the matter is amortgage broker is likely to show you the banks that will lend you the amount of moneyyou need and will also have the cheapest interest rate as well.
However, they might not showyou banks that will lend you more money than you potentially need at the moment.
Now, it'simportant to ask, "Which lenders can I borrow the most from?" because this will help youto project into the future.
Maybe you don't need to know that for this loan right nowbut maybe, in the future, you might need to borrow money again and you know, or roughlymy 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 upyour deposit and invest in two investment properties instead of just one.
And so askingthem, "Which lenders can I borrow the most from?" is a great question to ask to reallyunderstand your position.
Because, yes, interest rate is important but how much you can borrowis also important as well.
Another question to ask your mortgage brokeris, "Can I see a full list of my borrowing options?" Most mortgage brokers will provideyou with, usually, like a top three or sometimes only a top one.
"This is the one that I recommendfor you.
" 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 wantto see that they're giving you the full amount of information.
And most mortgage brokersare good people but there are some dodgy mortgage brokers out there who are just trying to getthe deal that gives them the biggest commission.
And so by asking to see a full list of whatyour borrowing options, you can then look at that and you can then assess, "Okay, wellwhich loan do I think is going to be best for me?" rather than just taking the recommendationof the mortgage broker who may or may not be thinking about themselves.
So, again, mostmortgage brokers are great people out there to help you but it's always a good idea toget a full list of your borrowing options that are available.
Next question to ask is, "Will this put amark against my credit file?" And so this is when you're trying to work out how muchyou're going to borrow and stuff like that.
When you go into a bank and you try and findout how much you can borrow, often, the bank will do a credit check and this puts a markagainst your credit file.
And what happens is if you have a lot of these marks againstyour credit file, even though it's nothing bad, this can actually stop you getting aloan.
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 againstmy credit file?" 'Cause it's not bad to have a couple or whatever.
But if you're gettinglots and lots of marks against your credit file, then that could be an issue.
So justmake sure and you know when a mark's being put against your credit file and when a markisn't being put against your credit file.
Second last question to ask is, "How sooncan I revalue or borrow again?" So if you're investing in a property to renovate it orto develop it or even if you're investing in a property that's potentially under marketvalue, you want to know how quickly can you revalue that property so you can get equityand then hopefully draw equity out of the property to go ahead and invest again.
Thereare 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.
Andbasically, this will give you an idea of how quickly you can revalue to consider goingagain.
You're also going to want to ask them, "After I invest in this property, how sooncan I borrow again or what do I need to do to put myself in a position to be able toborrow again and to purchase the next property?" Because hopefully, your goal isn't just topurchase one property but to grow your property portfolio and to achieve that financial freedomand that financial security that you're striving for.
And last question is, "Will my loans be cross-collateralised?"Now, I have heard a lot of stories about investors whose loans have been cross-collateralisedand it's cause major problems when they've gone and sold their property because the bankshave been able to take that money and pay off debt.
And basically, you want to avoidthis at all costs from what I hear.
And so, it's good to ask your mortgage broker, "Willmy loans be cross-collateralised in any way?" Generally going with the same lender for twoloans does it by default, even though it doesn't say they're cross-collateralised.
So, it'sjust something that you want to look at the fine print, you want to understand, "Are thesecross-collateralised?" And if they are, try and avoid it, try and get loans that aren'tgoing to be cross-collateralised.
So there you have some questions to ask yourmortgage broker next time you go and see a broker to find out how much you can borrowor get pre-approval or get financed for another property.
So I hope that has been helpful to you.
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So until next time, guys, stay positive.
You should also, at the same time, talk to a regional lender, a credit union (if you belong to one or you can join one) and a small local bank.
Each of these different types of lenders will offer different loan programs at different prices.
You should also ask friends and relatives who they’ve used for their home loans and how the experience went.
But emphasis is on the experience.
I have a great friend who once asked her sister for a lender recommendation, and the sister gave her a name and my friend had this horrific experience.
And when she went back to her sister to see what kind of experience her sister had had with this person, the sister confirmed that she, too, had a horrific experience.
“Hello! Why did you give me that lender’s name?” my friend asked, and the sister said, “Well you weren’t specific that you wanted someone good.
Sounds like a Seinfeld episode, right? And yet, this kind of stuff goes on all the time.
So here are some questions you should ask the person providing the recommendation that will help separate the wheat from the chaff:
- Did the lender repeatedly ask for the same documents?
- Is the lender organized?
A good lender should enable you to close on a home within about forty-five days – unless there’s some real serious problems with the house – so make sure to ask your friends and relatives if their lenders were able to meet that standard.
It may sound obvious, but it’s a good idea to look for a lender who specializes in making residential loans and has a reputation in your area for coming through with these loans.
Banks that aren’t generally known for their mortgage lending can be tougher to work with than some of the really big lenders.
And while you may be thinking to yourself, “I want to avoid the big banks,” you’re probably going to end up with one anyway.
Even if you go with a mortgage broker, that mortgage broker may actually work with a whole bunch of big lenders to fund your loan.
Above all, you need to find a lender that helps you understand the mortgage application process in a way that makes you feel comfortable and secure.
This is a huge decision.
You’re going to finance this property for the long run, and you want to do that with the right kind of partner.
And I just want to give a shoutout to anybody who is closing around October of 2015.
If you are, please watch the videos that I’ve made on the TILA-RESPA changes that are coming your way.
Right now they’re scheduled to go into effect October 3rd of 2015.
If you are looking to close around that, either before or after, you may have to build in some extra time to make sure that you don’t get caught up in all the craziness that’s going to go on I think when TILA-RESPA actually goes into effect.
Hi everybody, your real estate expert, LanceMohr.
And in this series, I'm talking about how to buy a house.
Today, I'm going to talkabout how to pick a mortgage lender.
If you don't need financing, don't worry aboutwatching this video unless you just want more information.
Alright, so how to pick a lender.
First off, if you've already chosen a real estate agent, this is a good place to start.
You could also ask some friends and family members, co-workers, get an idea who theywould choose.
Now personally, I was in the mortgage banking industry for several yearsand I was a co-owner of a mortgage company.
There's three types of lenders out there;number one is your big bank, your Bank of America, Wells Fargo and then you have yourmortgage bankers and then you have your mortgage brokers.
Now I'm not a real big fan of thebig banks or credit unions for that matter.
I think there's a lot of credit unions thatare really good, don't get me wrong and I'm not saying that there is anything wrong withbig banks.
I'm not a fan of them and the reason is – the reason why I don't like big banksis because if you go into a bank like Bank of America or say a Wells Fargo, you are onlyusing their money.
So if you go in and you have a very unusual circumstance and maybeyou don't qualify for their loan, they're not going to tell you "you don't qualify forour loan, go somewhere else".
They're just going to say, "You don't qualify for a loan.
" Now you may go to a mortgage banker or a broker and qualify for theirs.
So that's the problem, they are very, very limited because they only lend their money.
If you are round, you're not going to be able to fit in their square hole.
So it's not areally good way.
Now if you do use a bank, if you say Bank of America which I'm not afan at all, I haven't had them close a transaction on time in years, if they even close it atall.
So I got to say that, the only bank I can say that about.
But let's say you go toa Wells Fargo or you go to a Bank of America, always try to use a local loan office or don'tuse someone out of state, because you've heard of the term, "out-of-state, out of mind","out of area, out of mind".
That's really how it is.
You want someone local that knowsthe local ways in Florida, and more specifically I'm in Florida, I'm in Tampa, so the cityyou live in.
So that would be my first personal recommendation and I know a lot of lendersout there might be getting mad if they're watching this right now, especially if theywork for Bank of America.
But that's my opinion, I've worked with a lot of credit unions whenI was in the lending business and certainly not all of them.
Credit unions, the good thingis they really care about their customer.
The problem is they don't really do a lotof training to their loan officers unfortunately.
And you know, a lot of times when you're goinginto and getting a loan with a bank or credit union, a lot of times the loan officer ison a salary plus bonuses, and you want someone who, if they don't get you a loan, they don'tget paid any money.
That's the best way you are going to get a loan.
So I am a big fanof bankers.
Now really the difference between a bankerand a broker, is a banker lends their own money and will underwrite the file, usuallyin-house.
They are also called correspondent lenders.
Now I've worked for bankers before,and if bankers just don't have a competitive program – let's say you go in and maybeyou are a veteran and they're not real competitive on VA loans, let's just say.
They will usuallyhave brokers that they work with as well as and they could do different things.
So theyare usually good.
Brokers, I've worked for brokers when I wasn't lending as well andit's the same thing, but the difference is brokers have access to dozens and dozens oflenders.
Don't get fooled by that.
Most brokers only have about 5 to 7 lenders they work withat any given time; they might have a lender for their conventional financing, they havea lender for their government financing, they have a lender for their jumbo finances.
So don't get caught up into all that.
But the difference between bankers and brokers,if they don't find a way to say yes, they don't get paid.
And a lot of time what peoplewill do, is they will go out and they will be picking say maybe three companies, andthey will call up for a rate quote.
But you really, when you are calling up for a ratequote, you need to ask very specific questions and you need to do it all on the same day.
Because you could call one institution on Tuesday and rates could have changed up ordown on Wednesday.
And then you need to call the same day, you need to give the same parametersfor each one of them, "So I'm calling, I want to get a loan amount of $200,000 and what'syour rate lock?" Now I'm not a big advocate of going around and doing rate shopping becauseat the end of the day, lenders all get their money from the same place at the same price.
If you call 10 lenders, probably nine of them are going to give you the same quote for themost part.
Now banks will generally be a little bit more in the interest rate, but less inthe fees because everything is in-house, where a broker, they get their pricing at wholesale.
So there you could usually be more competitive on the interest rates, but they are a littlehigher on closing costs because they have to sort of outsource it and get it underwrittenover here in the process and all that stuff.
So get the information and call them all up,talk to them, ask them again the question, why should I work with you, what makes youdifferent, what makes your company different.
Whatever you do, whatever they tell you, onceyou lock in the rate, get a rate lock.
You don't want to be on different pages and theytell you one interest rate and then all of the sudden, you show up at closing and it'sa completely different interest rate, maybe it's a quarter percent higher.
Because theseller doesn't really care about your loan, all they know is you have to close.
So getit in writing from the lender, I can't tell you how many people – when I used to bein lending, pretty much everybody that I worked with, I always put everything in writing.
No one ever asked me but I wanted it all in writing for the documentation.
So always askfor it in writing and really try to take the person who you feel is looking out for yourbest interest, because at the end of the day, you could have the best interest rate in theworld, but if you are on the wrong loan program, the interest rate is sort of irrelevant.
SoI hope this helps you.
Leave a comment, if you have any questions, if you have anythingto say, you work for Bank of America – please leave a comment because I think it's goingto be real nice, but it is what it is.
And if you like my videos, subscribe to my channel,give me a thumbs up.
I appreciate it.
I wish you the best of luck in buying a home.
Havea great day.