Can some lenders do things that other lenders cant? (insurance, loan, interest rate)
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I am working with a lender who is telling me that this particular deal can not be done, but on the other hand I have another lender telling me IT'S POSSIBLE.
Are you talking about an actual lender or are you talking mortgage brokers?
The answer to either one is yes. Different lenders offer different programs and different brokers have access to different lenders.
Caution!!! Some mortgage brokers will tell you they can, and they can't. They usually have to get underwriting approval from the actual lender that is funding your loan. Check it out carefully. If both are direct lenders, they just have different programs.
Well, if she's talking mortgage brokers, they all have to get underwriting approval from the actual lender. But, let's face it...there are some mortgage brokers who think out of the box and others that do not have the experience to do so. There are mortgage brokers who have enough contacts and have done enough business that they have 'pull' and can sometimes get something through that another mortgage broker can't. That's why when you find a good one...stick with it. And yes, there are mortgage brokers who toot their horn and can't do much of anything, lol. All mortgage brokers are not created equal. And unfortunately for everyone...a lot of the borrowers lie about what they have in the bank, what their debts are, etc.
agreed palm, I have worked with some terrific mortgage brokers. I have also worked with some slime out there (my clients insisted, and it usually gets them in trouble).
Please listen to your REA when he/she says, we really need to talk to a local lender. Broker or Banker... it is usually in your best interest.
I would suggest asking the following questions. It will tell the broker you’re not someone to be toyed with because you know more about mortgage loans origination than the average applicant.
1) What are mortgage interest rates based on? The only correct answer is Mortgage Backed Securities or Mortgage Bonds (any originator that doesn’t know this may not know other key aspects of the mortgage origination business).
2) Is the rate quote they give to clients based on the best interest rate available that day from the lenders they work with or the largest amount of yield spread they’ll make? A truthful broker will tell you that if there are several lenders quoting the same interest rate for the same product on the same day with one paying a higher yield spread, they’ll base their quote to the applicant on the loan paying the higher yield spread (yield spread is revenue paid by the lender to the broker for placing a loan with them, similar to a car manufacturer’s rebate paid to a dealer for selling a particular model of vehicle).
3) How often is the total of all the settlement costs on the HUD-1 more than $100 higher than the Good Faith Estimate (GFE)? The answer you’re looking for is rarely. If they say anything else, ask “Why?” The only satisfactory answer is if they’re uncertain of the exact amount of the attorney fees, title insurance, hazard insurance, and property taxes (many originators will low-ball the settlement costs they quote on a GFE in order to entice you to work with them and then surprise you with higher fees at closing. Truthful originators will tell you the attorney fees depend on where the closing attorney’s office is located – an Angier attorney will cost less than one in Cary or North Raleigh; the cost of title insurance depends on the title company the attorney does business with; hazard insurance varies based on the insurer plus they won’t actually know the exact cost until the applicant secures coverage and property taxes may not be readily available if the house isn’t in Wake County).
4) Is the payment quote they give their clients Principal and Interest only or does it also include Taxes, Insurance and Home Owner Association dues (PITIHOA)? The correct answer is the quote includes all of the costs that the applicant will actually have to pay assuming they’re approved for the loan (many originators will low-ball the monthly payment quote in order to entice applicants to work with them. A truthful originator will attempt to quote an accurate number inclusive of all the costs involved).
5) How often do they miss scheduled closing dates? The only satisfactory answer is that they never do unless it’s because of circumstances beyond their control (applicants sometimes are slow to respond to requests for documentation or additional information which can cause delays in the loan file’s processing; likewise, sellers can sometimes be slow to correct issues discovered during the inspection which can have the same effect).
If you want to know more about mortgage loans and the business of originating them, I suggest buying a copy of David Reed’s book, “Mortgage Confidential: What You Need to Know that Your Lender Won’t Tell You”. The soft cover retails for $16.95 and should be available from the major bookstores (I bought mine, along with several other books of his, from Amazon).
I'm assuming you are relatively new to the business? What you do is go to your broker or one of the top producers in your office and you ask for who they generally use and trust. Remember, it is entirely up the buyer if they would like to release their information to any one other than who they have chosen to work with. But...if you know the senario of the buyer, generally they can tell you if it's possible or not and why. What did the 2nd broker tell you...why would it be possible...is it structuring, is it a program he's able to get through a different lender that the other person isn't registered with, is it because it will cost the buyer more money or the interest rate will be higher... would the buyer even want to do that?
I'd go speak with your RE broker and let them guide you through it.
I find as a pretty new agent I have to learn through fire....Most experienced agents are not interested in schooling a new comer.
I find that most experienced agents forgot what is was like to be a NEW agent.
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