I would be remiss in writing an article about how to choose the perfect mortgage broker without first discussing rates. The first question most people ask when shopping for a mortgage is what are your rates. Rates are very personal. A great deal of information is needed in order to quote factual rates. Loan-to-value, debt-to-income, credit scores are just a few of the many factors that will affect the rate available to you. Furthermore, looking at advertised rates in the paper, internet and rates advertised on the radio are designed for one thing and that is to get you to call. So what are you supposed to look for when choosing a mortgage broker?
In applying for a mortgage, make sure that you will understand all the terms and condition. Do not enter into something that you do not have enough understanding about, you might end up with misery if you did such.
I cautioned the buyer that he should seek a loan other than an FHA loan since we had not held title to the property long enough for FHA to approve a new loan. In case you didn’t know, FHA recently changed a rule that now requires a property to be on title at least 90 days before they will approve a new loan. So guess what the buyer did?
Then I asked him what his principal amount owing would be if he just kept paying another 30 months on his current loan plus the 12 months he had already paid. Answer: $119,342 at $898 a month.
One good way to make it easier to find your dream house is to tell your realtor which things are negotiable and which things are not. In other words, what are your highest priorities for your dream home, and which things can you give a little bit on.
Do everything in your power to get your products in front of them either verbally or through mailers, and you can be sure your closure ratio will go up.