Tip #1: Also Check For Home Mortgage Prices
Do not blindly accept a recommendation from Realtor or Builder to apply to their favorite lender for a Home Mortgage. They’re going to say several times, “We’re working closely with this guy and he’s getting the job done.” “We’re playing golf together and he’s getting the wine.” Note, you’re not going to pay the Realtor bill every month for the next 30 years.
Mortgage Loan Officers working off a Realtors and Builders referral network do not need to have fair home mortgage prices because they have a steady stream of “Drones” contacting them (people who are referred to and don’t shop). Look around, get the lowest Home Mortgage Rate, then if you’re interested, contact your “preferred” Loan Officer and tell him to fit the offer.
You can charge hundreds or even thousands of dollars in additional costs if you apply for a Home Mortgage through a preferred provider before browsing.
Tip #2: Home Call Loan Quotes At 11:00 a.m. Eastern Time
Hypothecary rates change every day and afternoon at times. The levels of the previous day typically end at 8:30 a.m. The day after that. Home mortgage rates are usually posted by 11:00 a.m. every day. Day of the North. It varies between borrowers and creditors. And guarantee that you get home mortgage rates from the present day and not a combination of previous day prices from some borrowers and other lenders ‘ current rates, often shop after 11:00 a.m. Day of the North.
Get after 11:00 a.m. all your quotations Day of the North.
Often due to a competitive bond market, home mortgage rates change at noon. Many Home Mortgage Lenders will change the Discount Points of their loans following the new bond prices when this occurs and will publish new Home Mortgage Loans for that day. Certain borrowers can keep upholding their morning prices.
Tip#3: Please tell The Mortgage Loan Officer You’re Happy to Apply For A Loan NOW
If you’re buying a home, inform the Home Mortgage Loan Officer that you’re Rate Hunting and that you’ve got a “ratified deal” to buy a home. Tell him that you’re going to decide on that day and lock-in a price, but you’ve got to test out a few other lenders. When he tells you if his prices compete with other customers, tell him that he’s the first guy you’ve contacted. If you are refinancing, inform the Home Mortgage Loan Officer that you are ready today to register for a Home Mortgage Refinancing. He may provide a bogus Home Mortgage Rate quote if you don’t tell him that.
Loan officers know that you’re likely going to talk to another borrower with cheaper home mortgage rates and the only way he’s sure you can call him back is to give you a fake quote that seems to be the lowest. He wants you to rate the shop for a couple of days and thinks you’ll call him back in a day or two because he got a low, fake quote. Furthermore, because home mortgage rates change every day and are prone to change at any time, he doesn’t care to give you a fake quote.
If you don’t know the quotes are true and which are part of a bait and switch scheme, how will you compare quotes? The only way to ensure that actual offers are obtained is to box in the Home Mortgage Loan Officers by making them think you are automatically ready to lock in a Home Mortgage Rate.
Tip#4: Ask for Full Points And Maximum Fees
Before contacting a mortgage lender, ask for “Total Points” (Discount Points, Loan Origination Fee, Broker Points) for each Home Mortgage Price. Many borrowers will only list the Discount Points and leave the Loan Origination Charge intentionally out. Once you apply for the Home Mortgage, you will not find out about the 1.00 Point Loan Origination Charge. By that point, you’ll embrace the Loan Officer statistics just because he’s had the paperwork and pulled your credit report. Potential brokers frequently fail to mention their broker fee.
A Loan Origination Premium is not paid by some borrowers.
Tell them directly if there is an extra Loan Origination Charge or Broker Fee charged when you are given the Maximum Points. If you talk to a Home Mortgage Loan Officer, you have to pin it in.
Request for a list of ALL other charges that will show on the Good Faith Estimate that you’re going to pay to the Lender or Broker. Make sure their credit report and appraisal fees are included. Many borrowers are paying one lump sum charge, which includes the Credit Report and Appraisal Charges, while others are charging each fee. Keep it simple to demand all charges, including credit report expenses and review rates.
Title Company, Attorney Fees and Escrows don’t get confused. These are calculated by a borrower on your Good Faith Estimate, but these fees are not included with costs associated with an offer for a mortgage rate. The amount required for your escrow account will not change from borrower to creditor, and the lender will not pay Title Company or Attorney Fees. In your analogy, don’t include them.
Tip#5: Also check the Rate Lock Time when Asking for a Rate Quote
If you are purchasing a home and you need 60 days to close, make sure that you explicitly demand a 60 Day Lock Mortgage Offer. Most Home Mortgage Loan Officers can quote prices for 15 Day or 30 Day Lock terms and for longer periods the Discount Points are cheaper than the premium locks. Citing a Home Mortgage Rate with a lock date of 15 days offers an undue advantage to the Loan Officer.
It’s also a waste of time because if you can’t settle on your loan within 15 days, the quotation isn’t true. If you are purchasing a home, please mention a 60 Day Lock-In. Apply for 45 Days if you are refinancing, but if you are very vigilant and contact the Home Mortgage Loan Officer once a week for your application status, you may be able to get it done within 30 days.
If your premium lock fails, if you want to re-lock, the creditor must re-lock you at either the original rate or the current rate. To you, this is a LOSE / LOSE scenario. Always cause the lock of your price to expire.
Tip#6: Calculate The Dollar Value Of The Points And Apply Both Fees
After you’ve been speaking to many Mortgage Loan Officers for some time, you’ll have plenty of Tariffs, Points and Fees on a sheet of paper. You will need to measure the Points ‘ dollar cost (subtract the amount of mortgage X the Total Points expressed as a percentage; multiply for.625 Points, for example, 400,000 mortgage sum X.625 percent). Then add to the total fees the dollar cost of the points. You can then compare the total value (points dollar price + all borrower associated fees) of each Home Mortgage Borrower for a given rate. This will tell you which Home Mortgage Lender has the lowest Home Mortgage Rates value.
When mortgage insurance is provided on a traditional home mortgage (not to be confused with mortgage life insurance), ask for the value per year expressed as a percentage and contrast it from borrower to lender. Many borrowers require different levels of coverage, which will affect the monthly payment for mortgage insurance. For contrast, borrowers use several different mortgage insurance providers which pay for their coverage different rates. The borrower will choose the insurance company for the mortgage.
Mortgage Insurance premiums may vary from borrower to lender, although most Home Mortgage Loan Officers will state, “We do not decide the scope for Mortgage Insurance, Fannie Mae and Freddie Mac do.” You can just ask, “Please humor me and provide a portion of monthly imaginary coverage.”
In insure that the monthly mortgage insurance payment is not more than what you were told, you will want to compare the quoted amount with what is on the initial application papers and final loan documentation. If it is, automatically growing it. If they’re not going to do that, please tell them to lower the Home Loan Rate by.125 percent, which should cover the difference.
If you get a government-insured loan (FHA or VA), you don’t need to equate the FHA MIP or the VA Funding Fee. Nevertheless, each borrower MUST use the same costs, so there is no reason to try to compare these costs from lender to lender.
Tip#7: You may have shopped around and received some offers from borrowers or narrowed down your hunt to the best
5 Home Mortgage Borrowers and Brokers while you were shopping for houses and dreaming of refinancing. But when it’s time to apply for your hypothecary, make sure you check your quotations for the 5 lowest priced hypothecary loans. Call to apply for the mortgage after you have found the Home Mortgage Lender with the lowest cost offer. Explain to the Home Mortgage Loan Officer that you want to lock the Home Mortgage Rate and apply NOW.
If the quotation has changed since a few hours ago you checked your quotations, notify the Loan Officer that you want him to follow the previous quote. If he’s not going to do it, you can call him back. Then call your list with the next cheapest Home Mortgage Lender. You can go back to the first borrower and continue with the application process if that lender asks you the same thing.
Make sure that the Home Mortgage Loan Officer decides to provide you with an actual Rate Lock verification by email or fax on the same day you apply for your loan before you send your application details. After getting the verification of the Rate Lock, check it and make sure that you are locked in for the number of days required (30, 45 and 60), with the correct type of loan (30 Year Fixed, 15 Year Fixed, etc.), with the correct total points quoted. For a borrower, it’s common to ask you to apply over the phone before they lock-in your home mortgage rate.
TIP#8: Never Float The Rate
If the Mortgage Loan Officer thinks you might be tempted to FLOAT the Price and Points, he may suggest, “I think the prices may fall, so you may want to FLOAT.” Note, never FLOAT the mortgage rate at home. Always. The Level and Points still lock-in. When you drop FLOAT and the Home Mortgage Tariff Discount Points, you will only know the gain of a small portion of that fall in the Dollars, if any. As a fat fee, the Home Mortgage Loan Officer will keep the remaining savings.
Here’s how once you FLOAT, they increase their profit. Initially, when you asked for your mortgage, the borrower quoted 4,875 percent with 1.00 Total Number. Then you called Lock-In 45 days later. Keep in mind that the actual Points of 4,875 percent fell to 0.250 Total Points over the 45 day period you are FLOATING. So you should have saved your 4.875 percentage of total points.75. Right? Yes! First of all, you don’t know if the points of his business have sunk or how much they may have fallen. So instead of sending you 4,875 percent for.250 Total Dollars, the Home Mortgage Loan Officer is telling you that his rates have dropped only a little.
He claims you will buy in for.75 Maximum Points at 4.875 each. You’re pleased because when you apply for your mortgage, it’s.25 cheaper than it was, but the Home Mortgage Loan Officer is delighted because he retains half the “overage” you paid. The overage is.50 dollars, and with his agency he shares it. If the loan total is $400,000, he only earned.25%, which is an extra fee of $1,000. That’s not terrible for a call with a five-minute mobile.
When you increase FLOAT and Mortgage Rate Discount Points, you will be paying for the increase. FLOATING is for you a LOSE / LOSE plan and the Home Mortgage Loan Officer a WIN / WIN.
Many businesses offer very low rates and draw lots of applications, but they will not require you to lock in until 15 days before the closing of the loan. You will be fucked if you bid for a test through an organization with that rule. When it’s time to lock-in your mortgage rate, you’re going to pay an “overage” which goes straight to the wallet of the mortgage loan officers. You will either charge more points for the rate that you received while applying, or you will receive a higher price. You’re going to get screwed anyway and the Loan Officer is going to get a fat overage attached to his fee.
Tip#9: Get a Final Good Faith Estimate Some Days Before Loan Closing Get at least a copy of the Final Good Faith Estimate a few days before the expected closing day. Test the Insurance Premium Mortgage Rate, Ratings, Fees and Monthly Mortgage (if applicable). Make sure that you get just what you’ve been bargaining for. If you don’t get anything, ask questions. Ask that the Final Good Faith Estimate delete previously undisclosed charges. If the mortgage loan officer orally agrees to make adjustments, make sure you get a new calculation.
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