How do interest rates really impact your buying power?

What can you really buy for your money?  Well, it depends on where you are buying and what type of property you are buying. This can vary greatly from state to state as well as from the city to the suburbs. I'm a big proponent of considering your future housing needs as well as your current financial situation before you decide to get pre-qualified and start your new home hunting. There are so many factors to consider, such as how long you are going to stay in your area, do you plan on starting or growing a family and how much disposable cash you have for a down payment.

Obviously, the lower th einterest rate, the more home you can buy. But by how much?  Well, for a $300,000 loan, the principal and interest payment for a 30 year fixed rate of 4.0% is $1432.25.  For every change in 0.125% in interest rate, the monthly payment changes by $21.54.  Not as much as you thought, huh?  Yeah, people tend to be a bit over dramatic when it comes to interest rate. In my humble opinion, the most important thing to consider is, "Can you afford the payment comfortably?"

There's also a great article today that addresses that, On The House:  On mortgage rates and what gets people to buy

These interest rates are for the purposes of example only.  You are not guaranteed these rates, you may or may not qualify for a loan.

For more information, pick up my #1 Best Selling Book at ElysiaStobbeBooks.com

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The Fun and Excitement of Loan Documentation - Ok, its Not Really Exciting, More of a Necesary Evil

Teresa Mears of U.S. New & World Report, Money has written a great article about the documents needed when applying for a loan.  Thank goodness someone else is talking about this! I can’t emphasize enough how much documents impact your loan timeline as well as your loan approval.

While this may seem more boring and makes you want to Stick A Fork In Your Eye, documents can make or break your loan. With documents, the devil is in the details. You will submit your asset accounts (checking & saving accounts, money market, IRA, CD, 401K, 403B, brokerage accounts, etc.)— any accounts you plan to draw money from for your down payment and closing costs. Supplying the proper documentation in the correct form can save you days of frustration and loss of time. The clock starts ticking when you sign a sales contract and everyone is working hard to get you to closing; so, if you do not respond quickly to document requests, you are not only risking your mortgage and your binder, you are also making it very difficult for the lender to finalize full approval for your loan. Also, if you cut corners and do not send documents in the proper form, you are burning time. Sending incorrect documentation can burn up several days—a day for the request, another day sending incorrect documents, another day the lender has to request correct documents… and so on.

If you want to be a proactive participant in your loan process, pay attention to what is requested and what you send. Failure to provide the correct documentation for loan approval will stop the loan process. If you are not able to provide the requested documentation for the underwriter, sorry to say, you will not be approved for the loan. I was working with a client last year that sent a scanned copy of his wife’s driver’s license that was illegible. After months of requesting a clear and legible copy of the driver’s license, we finally received a clear copy and were able to move forward. Thank goodness! Something as simple as taking a picture of your driver’s license with your smart phone and emailing it to your lender is a silly thing to hold up your loan closing.

Be prepared to get lots of documents and you will save yourself time and mental anguish. I once had a client that was wondering why his loan was not closing quickly. We had asked the borrower again and again for the documents, but he just said he couldn’t find them. Unfortunately, as much as I despise paperwork, if the underwriter needs it to approve your loan, you must provide it. If you need help with the document format or where to find some documents, just ask your lender. They should be happy to help you. If not, get a new lender!  Email me at info@bestmortgagebook.com for my Free Checklist “Questions to Ask When Selecting a Lender”.

Many of the documents you are asked to supply, such as a driver’s license or photo ID, are required by law. If you have questions about the document requests— wonderful!— I can’t preach enough about staying informed. Just make sure to ask your questions right away to keep the momentum going towards full approval and a fast closing. As you’ll see in more stories below, just a little attention can save tons of time and contribute to the smoothest loan process possible. Although everyone is working for you via the fees you pay them, they are also human beings working to get you a lump sum of money that you would not have otherwise. Keep in mind that all of these people want your loan to be approved and they have the best intentions in being your advocate for loan approval.

For more information on loan documents, read Chapter 11 in my #1 Best Selling book on Amazon.

For more mortgage tips check out our website www.bestmortgagebook.info

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What? Interest Only Loans Are Back!

Just when you thought the mortgage environment was safe….Oh NO! According to USA Today Interest Only loans are back!  This can be seen as both a good and bad thing. The fact that Interest Only loans are being offered means that the higher ups in the lending world think that the real estate market will stay flat or go up. The fact that banks are betting on that reminds me of 2006, that makes my insides flip and that’s not good.

What’s an interest only loan you ask? I’ll tell you…An Interest Only loan is a type of balloon loan. Each month you are only required to pay the interest on your loan, not the Principal & Interest. Why is this scary to me? If you only pay the interest, you will not be paying down the principal of the loan. So, in 10 years you will still owe the exact same amount as when you started. Most of the Interest Only loans require that the interest start being paid in five or ten years. That means a big payment increase for you; OUCH! Or possibly your entire loan coming due; OUCH OUCH! Be extremely careful and consider all your other options if you are considering this type of loan.

Is there a benefit to an Interest Only loan? Yes, when you pay over the interest required any principal is applied to your loan balance and the loan is recast. What does that mean? The extra you pay towards your principal is applied to the outstanding balance and your new payment reflects the updated balance. If you are disciplined and want to pay down your mortgage faster, an Interest Only loan may help you achieve that goal. An interest only loan can also be beneficial to those of you on commission. If you can pay your Interest Only payment with your draw or base and when you get your commission or bonus and you put that towards your loan balance that may also benefit you in paying off your loan quicker.

Keep in mind that this type of loan is not for everyone and you need to clearly understand what you’re getting into with this type of loan product.

For more information on loan types, check out my #1 Best Selling book on Amazon.

For more mortgage tips check out our website www.bestmortgagebook.info

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There's No Need to Get Stressed Out Buying a Home!

The stress of buying a home is right up there with death of a loved one, getting married or divorced. Moving is a life stressor and a major contributor of mental and physical disease according to HealthCentral.com. Add to that you can lose hundreds of thousands of dollars in the biggest purchase of your entire life and you can be stressed out if you don’t know what to avoid!

I wanted to share with you some of the information I presented last month at the FL Times Union Home Buyers Expo 

One of my presentations was 3 Monumental Money Mistakes To Avoid.

1.     Shop for the best lender, not the best rate.
-Do you start haggling with a car salesperson before you pick your car? No, so don’t make that mistake with the biggest purchase of your life. Shop for Lenders who are licensed, knowledgeable and can give your written references and success stories.  The best lender will get you the best loan program to suit your needs as well as the best interest rate.  This will save you thousands of dollars over the life of your mortgage loan.

2.     Get PreQualified or PreApproved before you start home shopping – Don’t waste time and money looking for houses you don’t qualify to buy.  Know your buying power.

3.     Choose your Team Wisely
– Would you choose a school without knowing where they rank in test scores in the state?  Would you choose a heart surgeon without knowing their education, what hospital they work for and how long they have been practicing?  You need to interview everyone who will be working for you during the home buying process:  Lender, Realtor, Title Company, Home Inspector, Insurance Agent.  They all need to work together to get you to closing on time.

I hope you find this information useful.

All of this information can be found in much more detail in my book on Amazon

To grab my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye™, click here: elysiastobbehomeloans.com

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

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July's Real Estate Market

Welcome to July.  It seems that it is a seller’s market, with about 5 months of inventory available.  Once this surpasses 6 months supply we may see a transition to a buyer’s market. But for now, the sellers have the upper hand.

What does this mean for you? Well, it could mean higher sales prices, bidding wars and less contingencies. What’s the best way you can be prepared?

As always, I recommend getting pre-approved instead of pre-qualified. This lets you know your true buying power. Also, a pre-approval is stronger than a pre-qualification.  In some markets, usually the hotter markets, Realtors ® and sellers won’t accept pre-qualification letters, they will only accept pre-approval letters.

In addition, select your team ahead of time so once you are under contract you are not scrambling to put together the pieces.  By team, I mean your Real Estate Agent, your lender, your title company, your home owner’s insurance agent and your home inspector. Take the time to ask questions of each and make sure you are comfortable with their answers. Once you are under contract you will have limited time to make decisions and that’s no fun if you are stressed out.

Here are Key Considerations when Selecting a Real Estate Agent

·        Look for Success and Experience

·        Look for a Listener that Hears YOU

·        Choose Team Sports Over King of the Hill – Look for a Real Estate Agent that works well with Others

·        Are there specialties that are relevant to YOU?  Such as MRP- Military Relocation Professional.  For a complete list of the National Associations of Realtors ® Certification, check out www.realtor.org/designations-and-certifications

For questions to ask your lender, check out my free download, Top 10 Questions to ask your Lender at www.BestMortgageBook.com

All of this information can be found in much more detail in my book on Amazon

To grab my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye™, click here: elysiastobbehomeloans.com

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

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Why our World Would End if Mortgages Disappeared

Who better than Gary Keller, founder of Keller Williams and Jay Papasan, VP of KW Publishing  to share their opinions about mortgages…this is an excerpt from my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye™

But before we get to that, here are my top 3 reasons to utilize a mortgage to your advantage when buying a home.

1.   Who wants to part with their cash?

No one.  Why would you?  If you can keep your cash in the bank and use the bank’s money to buy a home, why would you part with your cold hard cash? Or what if you don’t have the cash to buy a home? Who has $300,000 laying around?

2.   Interest Rates are at Record Lows

Interest rates are still hovering in the 4.0% range.  Why wouldn’t you grab this money that’s practically free while you can get it? If you’re going to borrower money, the cheaper you can get it, the better.

3.   Mortgage Interest is Still tax deductable

Check with your licensed CPA to make sure you can take advantage of this tax deduction.  Your tax specialist should be able to let you know how much you can save by becoming a home owner with a mortgage.

  

But seriously, why our World Would End if Mortgages Disappeared?  Well, for each real estate transaction with a mortgage, it takes about 25 people to get the job done.  From your licensed loan originator to the appraiser to your real estate agent and closing title company there are many people in the middle.  Also, if people could not use the bank’s money and had to spend their cash to buy a house, the housing industry would slow to a crawl. Which means retail would also be affected.  Such as the big box stores for home improvement and electronics.  Our economy would be seriously crippled if mortgages disappeared.  So, the next time you buy a house with a mortgage, feel great about helping the economy!

And without further ado, here’s the excerpt interview with Gary Keller & Jay Papasan.

Interviews with Gary Keller and Jay Papasan of Keller Williams Realty

As chairman of the board for Keller Williams Realty, Gary Keller helps provide strategic direction for the company at large. In addition to his leadership role with the company, Gary and his writing team have penned several national bestsellers: The Millionaire Real Estate Agent, The Millionaire Real Estate Investor, SHIFT: How Top Real Estate Agents Tackle Tough Times and The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results.

Jay Papasan, who after a successful publishing career in New York, co-authored the Millionaire Real Estate series with Gary Keller, collaborated on the best seller FLIP, and serves as Keller Williams VP of Publishing.

Elysia: Please share two pieces of advice you have about mortgages.

Jay Papasan: A mortgage is a serious responsibility and warrants very careful attention to what you can truly afford and what kind of mortgage can best help you reach your financial goals. However, a mortgage is a tremendous privilege. Imagine: if you couldn’t borrow the money to buy your home, you’d have to pay cash. If you thought coming up with a down payment was challenging, imagine what it would be like to save the whole purchase price!

In general, you’ll probably discover that mortgage loans are less confusing than you might imagine. Actually, what appears as a vast array of loan choices in the mortgage market today are all just simple variations on a few major types.

Elysia: Gary, what are your top three guiding principles for client service?

Gary Keller: Win, win or no deal. Integrity: do the right thing. Customers always come first. When we talk about client service, the definition of a professional is someone who knows what they know and knows what they don’t know. When you are faced with a situation with a client and you’re not sure of the answer, it’s not about looking like a professional, it’s about being a professional. Just be honest, and say, “That’s a great question. I want to give you the best answer. Would it offend you if I got back to you later today/tomorrow with an answer? I work with an amazing team and I’d love to run my thoughts by them and make sure you’re getting the best possible information.” Understand your strengths and leveraging the team around you and in your brokerage to give your clients the best service.

Elysia: Thank you Jay & Gary, I understand why you have raving fans and a successful growing international real estate company!

***Please keep in mind this is only an example for illustration purposes.  These interest rates may not be available and/or you may not qualify for this loan type.

To get on our waiting list for my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye™, go to our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

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Is Now a Good Time to Buy a Home?

We are in the midst of Spring Home Buying season and there are quite a few positive indicators that it’s a good time to buy a home. There are many factors to consider before deciding if it’s a good time to buy a home, such as the economy, interest rates, supply & demand, the cost of renting vs. buying and your own personal situation.

Where are interest rates?

Interest rates are hovering around all time lows (again!) right now, so that’s one important factor to take into account when considering buying a home.  What does this mean to you in real numbers? Well, let’s say you are considering purchasing a home with a sales price of $300,000.  In a perfect world, you put down 20%, which is $60,000. That leaves you with a loan amount of $240,000. Don’t worry; there are many other loan programs available with much smaller down payments, such as 3% and 3.5%, which would be $9,000 and $10,500 respectively.

If your interest rate is 4.0% for a 30 year fixed mortgage with a loan balance of $240,000, your monthly principal and interest payment would be $1145.80.

Let’s say your interest rate is 5.0% for a 30 year fixed mortgage for the same $240,000 mortgage; your monthly principal and interest payment would be $1288.37.

See the difference? That’s $142.57 a month you save on interest alone! Let’s look at it over the long haul…$1710.84 a year = $51,325.20 over the course of a 30 year loan!

Now, of course there’s more than one way to look at this.  That same $142.57 could also be a tax deduction for you.  Be sure to check with your CPA for interest deductions. The $142.57 a month could also be the same amount as one of your student loans. Only you know what’s comfortable for you when it comes to a monthly payment and what makes sense. Keep in mind that you are also responsible for home owners insurance, property taxes and any monthly home owners or condo association fees in addition to the principal and interest on your loan.

If you are a first time home buyer, you can save yourself time and money with my first time home buyer video tips at https://www.youtube.com/watch?v=YsL6BuJ8b-M

See what DS News has to say about buying a home now, "Analyst Says Buying a HomeNow Is a Solid Investment"

How long do you plan on staying in your area?

I think your own personal situation is the most important thing to consider when buying a home. Do you like the area? How long do you think you’ll be there? How long do you think you’ll be at your job? I bought my first home about two years after I graduated from college. My Mom was so nervous for me, but I wasn’t scared at all. I knew I liked the area (dear old Baltimore, MD my heart goes out to you) and wanted to be there for a while. I had moved around quite a bit in my early years and was looking forward to growing roots in the Baltimore community. I ended up living in that house for eight years. I rented out my house for the last two years I owned it when I moved down the road to Arlington, VA before I sold it. It became my first rental property. Since then I have owned and rented homes as I moved around the East Coast. Whether I bought or rented depended on all the factors I am sharing with you here; the economy, interest rates, the cost of renting vs. buying and my own personal situation.

CNN Money also says it’s a good time to buy, "Home Buyers In These Markets Have the Upper Hand"

What’s the cost of renting vs. buying?  

Does it cost more or less to rent than to buy? Any licensed loan originator as well as real estate agent should be able to help you with this calculation in your local area. Basically you take your total estimated monthly mortgage payment including property taxes, home owners insurance and any monthly home owners association or condo fees and compare it to the cost to rent something similar in location and size. To make it more complex, factor in your down payment and estimated closing costs spread over the time you think you will be in that location as well as any interest deduction your CPA thinks you would benefit from by owning. Other factors to consider are leverage and appreciation. For more help with this calculation feel free to contact me at bestmortgagebook@gmail.com.

Julian Castro, the Director of Housing and Urban Development is positive about buying a home in 2015.

***Please keep in mind this is only an example for illustration purposes.  These interest rates may not be available and/or you may not qualify for this loan type.

To get on our waiting list for my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye™, go to our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

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Are Home Inspections a Good Idea?

Turns out 20% of homeowners consider their home unhealthy according to Healthy Home Study conducted by Houzz.  A home inspection might help you find out if your new home is healthy before you buy it.

Home inspections are required on some loan types, but not all. However, it’s always a good idea to get a home inspection.  If you’re buying a house that costs hundreds of thousands of dollars, why wouldn’t you spend $400-$500 on a home inspection?

What’s a Home Inspection?

A home inspection is a detailed and thorough examination of the structure and mechanical systems of the property to determine quality, as well as soundness and safety. The purpose of a home inspection is to inform the potential homebuyer of any repairs that may be needed. The homebuyer generally pays home inspection fees. In addition to the basic home inspection, there are additional inspections that you may choose to have, such as a pest inspection or a 4-point inspection. Home inspections have come a long way— now they have thermal imaging, moisture detection equipment, and lots of other technical innovations to find hidden issues. Home inspections are not the same as a home appraisal.

VA and FHA Loans Both Require Home Inspections, But…

Home Inspections are not required for all loan types.  I strongly suggest that you have a home inspection for your protection.  Don’t you want to know what you’re getting yourself info?  Whether it’s an “unhealthy” home or a $200 repair or a $15,000 new roof, you should have this information before your purchase the home.  I think that $500 is money well spent on a home inspection.  You might feel that you are so in love with a home you are prepared to deal with whatever needs to be done. You might be thinking “whatever” could be $5,500.  What if it’s $55,000? Ouch!

My lender requires an appraisal.  Why do I need a Home Inspection too?

The appraisal does NOT take the place of a home inspection.  A home inspection is NOT an appraisal.  The two are completely different.  They are completed by different professionals with different credentials. An appraisal uses sales of like comparable properties to estimate the value of the home.  It does not examine in detail the systems and components of the home.  A home inspector will evaluate the roof, HVAC, plumbing, electrical, foundation, framing, insulation, ventilation, walls, ceilings, floors, step, stairways, railings, garage doors, and a representative amount of doors and windows.

For a complete list of what to expect and what not to expect your home inspector to examine, check out the ASHI standards of practice and code of ethics at their website:  http://www.ashi.org/

Not all home inspectors are created equal. Some will eyeball the roof from the ground, some will get up on a ladder and walk around to inspect the roof. Some will use infrared technology and camera scopes. Some include a mold screening, a moisture analysis, and, a sinkhole report. Some will charge extra for a WDO (wood destroying organisms) report, wind mitigation letter, and, a 4-point insurance letter. You want to know exactly what you’re getting for your money and exactly what reports are included. Do your research and ask lots of questions. Technology has come a long way, make sure your home inspector is up to date with the latest home inspection technology.

To get on our waiting list for my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye, go to our website www.bestmortgagebook.info

For video mortgage tips, subscribe to our YouTube Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

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3 Monumental Mortgage Money Mistakes to Avoid

As the Spring home buying season heats up, I want to share with you 3 mistakes that can cost you BIG MONEY. I know it's natural to go house hunting, tour your dream home and then meet your realtor to write an offer. But before you embark on that american dream to home ownership with enthusiasm and your check book, be sure to plan correctly.  Here are my top 3 Monumental Mortgage Money Mistakes to Avoid that can save you thousands of dollars:

☑  Not getting pre-approved

☑  Not understanding your loan options

☑  Not planning/asking the right questions

Not Getting Pre-approved

This can easily cost you $1000 right off the bat. Ugh! Not fun for your wallet. Lets say that you go home-shopping and make an offer on a new home and you are pre-qualified, but not pre-approved. If the lender calculates your income differently than you did during the pre-qualification process, you may not be on the same page when it comes to actually closing the loan. That puts your earnest money deposit (aka binder) in jeopardy and can cost you home inspection and appraisal fees. Appraisal, home, and pest inspections can easily total $750-$1,000.

Not Understanding Your Loan Options

What down payment options do you have? Will a small difference in down payment equate to saving, or paying, tens of thousands in PMI? What about property type and foreclosure properties? There are certain loans that are for those properties and certain loans that are not for foreclosures and condos. What if you made an offer on a HomePath property, but your lender didn’t offer that type of loan? What will that cost you? Higher down payment, unnecessary appraisal costs, and, possibly higher mortgage insurance; again this can be $1,000s that you don’t have to spend! See Chapter 13 for a full discussion on Loan Programs, and Chapter 14 for a full discussion on Loan Terms.

Not Planning/Asking the Right Questions

How much seller credit can you receive for which loan types? What? Yes, certain loans allow for maximum seller help for your purchase. For example, FHA allows for 6% seller help, while a conventional loan allows for 3% for a primary residence and only 2% for an investment property. These are important discussions to have with your lender before your real estate agent writes up your contract offer to the seller. Let’s say you could have gotten 6%, but didn't know and you left $1,000’s on the table and then used your money instead of the seller’s? Bummer!

For more mortgage tips, tools and info check out bestmortgagebook.info

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https://www.youtube.com/channel/UClqbHsnbsMWVJqw674g9y-Q

Does it take a village to close a mortgage loan?

How many people go to work for you when you get a mortgage?

Well, this number may be much higher than you think.  The obvious suspects are your lender and your real estate agent. 

Let’s add to that all the people on their team. In addition to your lender’s loan officer, there’s also their processor, underwriter, closer, doc preparation team and the post closer to name a few more you may not have known about. On your real estate agents team they may also have a closing coordinator.  There’s also the listing agent and their closing coordinator. Wow! 

We’re still not done. Let’s add to the list your home inspector, pest/WDO inspector and your home owner’s insurance agent and their team.  In addition, there’s the appraiser and the appraisal management service company. On average there are over 20 people working hard to help get you into your new home!

Why do I bring this up?  Well, embarking in the pursuit of the American Dream is not to be taken lightly, by you or anyone on your team. Be sure to choose your dream team wisely.  Do online research, such as Zillow reviews, BBB ratings as well as ask for customer surveys from past clients. If this information is not made readily available to you; buyer beware.

In addition, soon there will be even more people involved in the mortgage loan process.

http://www.inman.com/2015/03/19/it-will-take-a-village-to-close-a-mortgage-in-2015/

To get on our waiting list for my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye, go to our website www.bestmortgagebook.com

For quick & easy mortgage video tips check subscribe to our YouTube Channel:
https://www.youtube.com/channel/UClqbHsnbsMWVJqw674g9y-Q

Getting the Best Mortgage may help you financially in the long run

Cash is King. Well, maybe not if you want to buy a home. According to the recent Washington Post article, The case for not paying off yourmortgage by retirement by Jonnelle Marte there’s good debt and bad debt.  Jonnelle considers a mortgage good debt. Cash is liquid and you can’t access your cash if it’s tied up in your home. Of course, there’s also the added benefit of deducting the mortgage interest on your home. There are quite a few mortgage options now that allow you to put down a small down payment. If you are a first time home buyer you can put down as little as 3% if you qualify for a conventional loan.  FHA currently allows for down payment of 3.5%.  For all you veterans (thank you for your service!) if you qualify, you don’t have to put anything down.  Yes, VA loans allow for $) down payment, which means 100% financing. The USDA loan also allows for $0 down payment. So, as you can see, there are many loan options available right now. However, it’s important to know the different features of each. For example, VA has $0 monthly mortgage insurance fee.  USDA has .30% monthly mortgage fee.  FHA’s monthly mortgage insurance is .85%. The VA, USDA & FHA loans are government loans and they ALL have up front funding fees, so be sure to discuss those with your mortgage lender. Also, FHA now has monthly mortgage insurance for the life of the loan. It’s not removed once you have over 20% equity in your home like other loan products. Ask your lender all the questions you can about the differences in all the parts of your monthly mortgage payment as well as the costs of the loan, such as the funding fees.

***Please keep in mind this is only an example for illustration purposes.  These interest rates may not be available and/or you may not qualify for this loan type.

For more mortgage tips, tools and info check out bestmortgagebook.info

For quick & easy mortgage video tips check subscribe to our YouTube Channel:
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Lowest Rates Today?

Spring is here and there's interesting home advice out there. I have helped clients with several purchases this week - watch those bidding price wars! Holly cow those can be rough! After an uptick in rates, they have dropped back down so refinances are keeping us busy too. What's all that mean to you? Well, with Spring comes home buying advice. The Consumer Report article shaking up the mortgage brokers by telling consumers to go to a direct lender is not a shock. However, there's so much more than just shopping the rate. I can't emphasize this enough. Shopping the rate misses the mark in so many aspects. If you call lenders and ask for their best rate, it doesn't take into account the variety of loan programs as well as the cost of mortgage insurance. I'm not a fan of Bankrate as it is very misleading to the consumer; the rates are with fee and many people don't click on the fine print to see exactly how many points they are being charged. Shopping for the best rate or lowest rate misses the mark on so many important pieces of your mortgage, such as funding fee (or not), how down payment affects your interest rate and of course, last, but not least credit score. What if you are interested in one loan with mortgage insurance or a 1st loan with a 2nd loan? That affects interest rate too. What if you ask for the lowest rate, but you don't qualify for it? In order to get the best rate, you need the best lender, who will find you the best loan program. That's how you get the best mortgage. If you get the lowest interest rate, but it has the highest mortgage insurance, your total monthly payment could be more than if you had a higher interest rate and lower mortgage insurance.  How long do you need to keep the mortgage insurance? Good question. FHA now requires you keep the mortgage insurance for the life of the loan! FHA also has an up front funding fee. If you can get a lower interest rate with an FHA loan, but you don't take into account the other fees, can you see how you could have a higher monthly mortgage payment AND payout wasted thousands of dollars over the life of the loan? Is there a better loan for you?  The best lender will help you get the best loan for YOU. Here are 10 questions to help you get started on your search for the best lender.
1. Are you a direct lender or a broker?  How does that affect me?
2. Can you issue a conditional approval on my loan within 2 business days?
3. Can you guarantee you will close my loan in 30 days or less?
4. Do you have any written references? Do you have client surveys you can share with me?
5. What is your closing ratio?
6. What are the upfront costs I will incur during the loan process before I close?
7. Do you attend the closing?
8. How long has your company been in business?
9.Are you a licensed Loan Officer?
10. How long have you been in mortgage industry?

There's a lot more to shopping banks than the rate. I always find that an educated consumer makes for a great client.

***Please keep in mind this is only an example for illustration purposes.  These interest rates may not be available and/or you may not qualify for this loan type.

For more mortgage tips, tools and info check out  bestmortgagebook.info

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Zillow vs.Trulia

How many of you use Zillow or Trulia?
What's so great about these real estate websites?
Should you use them as part of your home buying process?
For one reporter's opinion (as well as my comments!) check out this article:
zillow-vs-trulia
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