During a recent real estate transaction, on which I was the listing agent (representing the seller of the property), I experienced first-hand the obstacles that can occur when a buyer is using a mortgage broker or loan originator from outside our state. The closing was unnecessarily delayed by 14 days because the lender did not understand how business is done in Colorado and has no incentive to learn.
Here are my top 10 reasons buyer’s should use a GOOD LOCAL mortgage broker when securing a loan for the purchase of a home:
#10 They understand how real estate transactions are handled in your state.
#9 They have taken the time to establish relationships with title companies ensuring a smooth transaction for your purchase.
#8 They are willing to work closely with everyone involved with the transaction from real estate agents to title companies, inspectors and contractors. Communication is key in successful real estate transactions
#7 They are able to be more flexible with changing situations throughout the entire process and can respond quickly to special requests.
#6 Using a good local mortgage broker can give you an advantage in multiple offer situations. Your offer is evaluated on more than just the purchase price, it will also be evaluated on the likelihood you will make it to the closing table. I have negotiated many multiple offer situations, both as the buyer’s agent and as the seller’s agent. The reputation of the buyer’s lender is important.
#5 They know about special state, county or city programs that may provide credits or incentives to buyers.
#4 They will focus on your personal GOALS and build a program around what matters most to you: low down payment, target mortgage payment, 1st-time home buyer programs, grants and assistance programs, etc.
#3 They know that every deal is a little different and can successfully navigate you though all the details required to deliver the funds ON-TIME for Closing.
#2 They have an incentive to work closely with you as a client since their business success depends on quality customer service rather than the quantity of transactions.
And the # 1 reason to use a local mortgage broker … You’re making one of the most important purchases in your lifetime – don’t leave the details to someone who doesn’t know your market or who hasn’t taken the time to get to know you.
Are you upside down on the mortgage for your home, 2nd home or investment property? Would you like to take advantage of the low interest rates but assumed you couldn’t?
My husband and I own a rental property in N Aurora. The loan was an “interest only” loan and the property is worth about $10,000 LESS than what we owe. We have been frustrated wishing we could refinance but not being able to afford to bring that much money to the closing table.
Earlier this summer I heard about the HARP 2.0 program. HARP stands for Home Affordable Refinance Program.
We have been approved for a new loan at a lower interest rate for a monthly payment that is slightly less than what we were paying for the interest only portion of our previous loan. No appraisal was required, either. I can’t explain what a relief it is to know that we no longer have to worry about the payments on that property going up. Our rent barely covers the mortgage payment and other expenses and any increase could easily put us in a serious financial bind.
For specific details about the program you can go to http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx, then contact your mortgage broker or current lender and ask for help getting the refinance started.
Here is a brief summary of the eligibility requirements:
I am not a lender or mortgage broker and don’t intend for this blog post to cover all of the details and requirements but to let you know that there may be some help for you. Be prepared to spend many hours getting your documentation together for the underwriter’s but in our experience it was time well spent.
If you live in the Metro Denver area would like some referrals to mortgage brokers that can help you get started, please feel free to contact me.
Mortgage Rates Are Low, but Predicted to Rise
Though rates remain low, many economists expect mortgage rates to rise, especially now that the Federal government has pulled out of the mortgage game. If you are one of those homeowners who have been putting off a refinance, you may want to consider making the move and locking into a rate within the next few months.
Housing Prices Continue to Fall
Traditionally the summer is known as the home buying season, but according to Mortgage Bankers Association (MBA), sales are projected to be slow and few in many major housing markets. If you’re in search of a property deal, now’s the time to hunt.
Take advantage of the slow summer market.
New Twist in the Mortgage Application Process
If you’re in the midst of applying for a mortgage, think twice before taking on new debt. Sure, it may be tempting to apply for your favorite store’s credit offer and save 20% on your purchase, but this small savings can derail your mortgage application process. Mortgage professionals are now required to check your credit before closing, so applying for a new credit card or loan while your mortgage application is being processed may result in major approval delays.
Accurate Good Faith Estimates (GFE)
The feds are cracking down on those lenders who deliver inaccurate good faith estimates and secretly slip in surprise fees at closing. With an accurate GFE you can borrow with confidence. An accurate GFE will ensure you’re fully aware of all fees upfront so that you’re not stuck with any unexpected expenses when all is said and done.
Academy National Mortgage Corporation