| |
| |
|
|
Mortgage and Refinance Information |
|
Why a Mortgage Professional Beats a Banker Every Time -- The Story Tells It All
The best way to explain why a mortgage professional is always better than a banker is to use an anecdote. My parents lived in the house I grew up in for 35 years, so it was finally time to move. They found a home they liked, made an offer, and signed a purchase agreement. After conferring with me, they decided to go to a bank - one of the more well-known mortgage banks in the region. Of course, I thought a good mortgage professional would be better, and I told them I could follow the deal from start to finish, if they went with a company I previously worked for, but the bank they decided on offered a little better rate and lower fees, so they wanted to go with them. I told them to go ahead, but I was nervous, knowing what I know about large banks, ones that are not wholesale lenders, who work with mortgage professionals. After many trips to the bank (remember, bank loan officers don't come to you) that included plenty of hassles over paperwork, they agreed on a loan for their new home. The next step was to sell their house, so they could use the proceeds for a down payment and moving expenses. My parents had over $60,000 in equity and wanted to put a good chunk down on their new house and use the rest for expenses. Since time was against them - they had 30 days to pay off the seller of their new home, and they didn't have an immediate offer on their current residence - they decided to apply for a bridge loan (more on bridge loans later). This would take the equity from their current home and use it to pay off their mortgage, leaving them enough money for the down payment on their new house. When they sold their old home, they would use that money to pay off the bridge loan. Here is where things got very dicey. Their new lender offered 85 percent of the value of their home for the bridge loan. So, if the home appraised for $100,000, they would get $85,000. They assumed the value would be there. The bank sent an appraiser on a drive-by, which means my parents weren't notified, and the appraiser did not go in the house. He then wrote up the value for the bank's loan underwriter. Drive-by appraisals almost always come in lower than the home's actual value. Now one of the three or four loan officers my parents were dealing with called and told them the value they would use for the loan, and it turned out to be about $10,000 less than they expected. This meant they would not have the money they hoped for, and they would now have to put less money down on their new home. This would, of course, lead to other problems - like a higher monthly mortgage payment and less money for moving expenses. They were, to say the least, devastated. Being the proactive person that I am, I decided to intervene and call their bank. I spoke with one of the many loan officers (you see, you don't have just one person handling you at a bank; you're just another loan number). I had, of course, already done my own research and learned that the value of my parents' house should be much higher. I asked the loan officer to explain how they came to this very low value. She fumbled through her answer and told me they use comparable sales prices in the area and that they don't do a drive-by appraisal. She said I would have to talk to someone in their equity department, because she didn't know what other options there were. I was somewhat surprised at her lack of intimate knowledge with the bank's policies, but I certainly wasn't shocked. This is the nature of home loan operations at a bank - one person passes the responsibility to another and only in rare instances does one department really know what the other is doing. You'll never have this problem with a good mortgage professional. After being channeled through another receptionist at the same branch office, I wound up speaking to an underwriter in the equity department. She told me that a drive-by was, in fact, done. I explained to her as I had the other woman why the value was inaccurate. (I had very accurate comparable sales prices from different resources, given to me by one of the area's best appraisers.) I asked the equity underwriter if my parents could have a complete interior appraisal done to give a true value, and she said this was an acceptable option. In the end, my parents got the value they needed, and things worked out just fine. They needed a quality mortgage professional, though, to get it done. Mark Barnes is an investment real estate and real estate finance expert. Get his free mortgage finance course at http://www.winningthemortgagegame.com. Mark is also the author of the new novel, The League, a shocking, sports-related conspiracy. Learn more about his suspense thriller at http://www.sportsnovels.com.
MORE RESOURCES:
Mortgage-Refinance - Google News |
|
|
|
RELATED ARTICLES
Buying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit will just put more emphasis on the other two factors needed to get a mortgage loan, which are; income verification and a down payment. Subprime Mortgage Lenders - Helpful Tips When Getting a Subprime Mortgage Loan If you have bad credit history, no down payment or difficult to prove income and are looking to get approved for a home mortgage loan, you will probably need to look at subprime mortgage lenders to help you. To see a list of our recommended subprime mortgage lenders you can click on the link below. Home Mortgages: Does a No-closing-cost Loan Make Sense for You? I have heard a number of radio ads and have seen many newspaper ads offering "no closing cost" home mortgages. These ads will tell you that you can get a new mortgage or refinance your existing mortgage at absolutely with absolutely no closing costs. Taking the Time to Find the Best Home Improvement Loans The best home improvement loans usually aren't going to be the first loans that you encounter, but if you're in the market for a loan to pay for repairs, expansions, or improvements to your home or other real estate then it might be worth your time to shop around before you decide on one loan or another.Shopping around for the best home improvement loans isn't a lot of work, though it can be a bit time consuming and requires quite a bit of legwork. Buying a House or a Home? A house is just that, a house, until someone lives in it. That's when it becomes a Home. Total Cost Of Credit vs Monthly Payments I read a press release the other day which points to the fact we need to be very careful with our finances. The subject of the release was home mortgages. Secured Loans For Home Improvement - When You Can't Buy A Luxury Home A house is just perfect with chipped walls and broken taps. Is it? If you don't think so, then home improvement loans is what you should be looking for. Key an Eye on Your Mortgage Payments In previous decades, when a borrower missed a payment on a mortgage, the lender would often consider them one month behind until they eventually caught up. Most lenders would impose a late fee and other interest or penalties, tacking them onto the back end of the loan as long as the lender stayed current with the rest of their payments. Home Improvements Turn Average Homes into Dreams Come True If you're thinking about taking out a home improvement loan, there are several options to consider. First and foremost, your mortgage consultant needs to know why you want a home improvement loan. Buying a Home? Dont Get Saddled with Two Mortgage Payments I have a lot of friends and family who are currently buying houses. Many of them have had a problem with timing. How To Save Hundreds A Month On Your Mortgage When it comes to American spending habits, the sad truth is that most people don't put their financial assets to the best use. One of the greatest examples of this is the home mortgage. Why Refinance Back into a 30-Year Loan? One of the biggest reasons homeowners refinance their mortgage is to obtain a lower interest rate and lower monthly payments. By refinancing, the borrower pays off their existing mortgage and replaces it with a new one. Securing the Best International Mortgage for Your Home in Spain Are you one of a growing number of people planning on buying a holiday home in Spain?Or have you decided to expatriate, buy a Spanish home and live in it permanently?If so, you may be about to begin your hunt for an international mortgage to purchase real estate abroad?The task of finding the best international mortgage can seem like quite a daunting one at first glance with many domestic, overseas and international providers vying for your business. But don't panic! Tackle the task head on, ensure you secure yourself the best possible international mortgage or property finance deal today and you will save yourself tens of thousands in interest payments over the lifetime of your mortgage. Bad Credit? Qualify Yourself For A Zero Down Mortgage Loan I decided to write this article today after closing a home purchase loan for a couple that had some major credit issues. They got into the house with ZERO down payment, and only had to bring $600 for the closing costs. Mortgage Debt Elimination in 5 to 7 years! Mortgage Debt Elimination shows that most home loan debts will be secured. Secured debts usually are tied to an asset, like your house for a mortgage. Adjustable Rate Mortgages - Understand the Benefits Compared to a Fixed Rate Mortgage Adjustable rate mortgages can be very tempting to home buyers, yet they carry a great deal of uncertainty. Fixed rate mortgages offer rate and payment security, but they are more expensive. How easy is it to get a Commercial Mortgage in the UK? As is the case when applying for any mortgage, be it a residential or a commercial mortgage, the better your credit and the better the collateral, the easier the process becomes. But that doesn't mean that if your credit is less than perfect, or you want to purchase commercial property in a less then desirable part of the city, that you are automatically locked out of getting the money you need. Selling Your Business Note Before I go further, let me ask a question- if you won the lottery tomorrow, would you take the payout in a lump sum or in monthly payments?Most people would take a lump sum because even though it might be less than the total prize, they would have control over a large sum of money now and could let the time value of money go to work and increase their winnings.So why then would you opt to get paid on your business sale over several years rather than take a lump sum payout?The answer is probably because you didn't know that you could get cash for your business note. Bad Credit Mortgage Loans - How To Get Approved Persistence is the key working toward getting approved for a bad credit mortgage loan. There are many factors that you, as a borrower have control over that can help you get approved faster and easier. Types Of Home Equity Loans There are two broad types of home equity loans:Term loans: Home equity loans of a fixed nature are also called second mortgages. For example, if you have bought a home for $10,000, and made a down payment of $1,000, and taken a mortgage for the rest and have managed to repay another $2,000, then you can apply for a home equity loan of $3,000.
|
|||||||||||||||
