if you don't believe me tell me how you feel after calling in, pressing 1, entering your social, entering your zip code, and then hearing this "Your call is very important to us, we'll be with you as quickly as possible". 125%, but people still choose me because of the trust they have in their Realtor or family who referred them, and that I'll go into extensive detail making sure they understand everything and are comfortable. One that will answer the phone and keep you up to date. Loan officer - you want a loan officer who can help guide you through the process.
So, bottom line you preferably want a lender that doesn't have extra rules, but if you're well qualified it may not impact you. scroll in on your area, and you can't buy in orange zones). Search "USDA property eligibility" - looking for the gov site, and the first button you have to click on first page is "accept". This loan is better than FHA, but requires you be in a rural area.
Conventional use Fannie Mae and Freddie Mac guidelines, and government are FHA (Federal Housing Administration - which btw is the most expensive loan and only good for people that have no other choice), VA (Veterans Administration - exceptional loan, but only available to military), and USDA (Yes, same one that stamps your steaks. An overlay is an extra added rule that the lender applies because they can on your normal lending guidelines. hence why having a good loan officer who can explain it simply to you will help. So for me that's pretty simple stuff, but for a new mortgage client that's confusing. 125% a year lower with the lower rate, which means in 2 years time you'll have saved that money on interest. Another consideration is actual interest paid, will be. $250 / $7 = 36 payments before you start saving money in payments. The payment on a 30 year fixed drops by about $7. If your loan was $100,000, that means an extra $250 in cost to get the rate lower. Yet you can pay a quarter point to get to 4.625%. As an example, let's say your rate is 4.75% with no points (meaning no extra cost to rate, nor any credit towards cost from rates). This is where math comes in along with how long your best guess is to stay in the house. so on a $100,000 loan, it's an extra $1,000 in closing costs. Points are in fact a percentage of the loan. just means they don't understand what they are for. 100% ignore anyone when they say "don't pay points".
A cost will be traditionally calls "points". When you are given a rate there is a cost or credit associated with it. Rate - this is important, but it's not the end all be all.So specific to your situation there are certain things you're looking for: A good loan officer at a crap bank can still get stuff done, where a bad loan officer at a bank with great rates and tools can still totally jack a loan up. If there is a loan officer, they are generally the make or break of a loan. In some cases like with Quicken/Rocket mortgage you likely won't have an assigned loan officer, but a set of processors. The primary reason for this is the loan process is very dependent on the loan officer itself. Interview the Realtors, choose the one you want, then ask them who they like for lending. Make some calls to friends and family to get referrals to Realtors, and during those calls ask if they have a lender they like. If that is the case, here's where I'd start:įind a Realtor you like. I'm going to assume that you don't currently own a house, and this question is specific to buying a house.