Finding the right lender can save you thousands of dollars because loan fees can very several thousand from lender to lender.
Without quality home loans there would a lot less homes sold because 95% of real estate sold is financed.
Since the real estate meltdown the lending industry has reverted back to the good old days when lenders treat borrowers like they were trying to steel something.
When the real estate lending industry suffered from Their Greed and Stupidity in the past it took several years for them to recover. And get back into business as usual.
This time because of the severity of the financial problems lenders created it may take longer. Click Hear For Information on Fannie Mae Loans
Most First Time Home Buyers need a fairly high loan to value ratio in order to make a purchase.
Real Estate Loans are base on your Gross Income. Your total debt to income should not exceed 40%.Home Buyers That Are Shopping for Mortgage Loans.
Take Heed Pay Attention.
What I am about to tell you can save you Thousands of Dollars. If you are working with your Realtor. Buyers/Agent Do Not rely your agent to find a real estate lender for you.
Do your own research. All lenders are offering the same type of products FHA, VA and Conventional loans. The difference is what they charge.
Remember this, the difference is what they charge for making the loan. Some lenders charge more than others. So shop for the best prices because you are paying the bill.
Real Estate Loans are originated for 2 reasons.
(1) To finance the purchase of homes.
(2) To Generate Loan Fees.
Mortgage Loan Originators have many names for their loan fees. The list is long but I will list some of the more common fees.
• Origination Fee.
• Discount, Points.
• Administration Fees.
• Funding Fees.
• Processing Fees.
• Underwriting Fees.
This is the short list. When I think of more fees I will add them to the list.
When you are planning on buying a home there are several things you must be willing to do if you want to save some serious money on Real Estate Loans and Realtor fees.
1. Take some time and plan your purchase, type of home, location, etc.
2. Start shopping for a lender that will give you a Flat Fee for originating your loan.
3. After you know how much you can borrow and what the terms are. Monthly payments, Property Taxes, Private Mortgage Insurance and Home Owner’s Insurance, Home Owner’s Association Fees, etc. then your ready to find a Realtor.
4. Shopping for a Realtors can save you Big Money if you hire a Buyers/Agent. How do you Find Lenders and Realtors that will work on Flat Fees? Start Interviewing Agents.
After 47 years working as a real estate agent and financial consultant I have encountered hundreds of agents that Do Not know how real estate loans are originated.
I am still shocked by the lack of knowledge most Realtors have about real estate loans.
Here is the question of the day. When it takes the same amount of time and experience to originate a $150,000 loan as it does a $250,000 loan then why is it worth more money for the larger loan?
I can get a loan originated for $1,800 any day of the week, plus third party loan fees (Lenders Title Policy, Escrow Fees, Recording Fees and Processing Fees).
Why does it cost up to $4,500 or more to originate a $250,000 loan? The answer is; because loan originators can charge whatever they can get away with.
When borrowers and Realtors do not know the difference. Borrowers Pay The Price.
Anyone can find a Realtor that will work for a fixed commission and if the seller is willing to pay a 6% commission for the sale of a $250,000 house ($15,000)
Your Buyers Agent is willing to help with the deal for $3,500 then you should have a refund a the close of escrow.
The normal commission split between real estate brokers is 50/50. That means your Buyers/Agent would be entitled to $7,500 less her fixed fee of $3,500. You should be refunded $4,000 at the close of escrow.
Not all real estate loans cost the same so shop around for the best terms, because there are lots of hungry loan officers out there.
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