Hi all,
Have a few questions. How can I make sure my mortgage broker is not going to rip me because these are my first deals? What are some hidden fees to look out for? where does the mortage brokers fees come into play? What else should I look out for?
For SFW personal residence they gave me - 5% down at something like 6 point something interest rate( maybe 7 %)
multi family 15% down but I can also “buy” my interest rate down to about 5.99% from around 7.99 i think.
Any advice would be greatly appreciated. Thanks.
Well if you are do your first deals then you should ask for references on your broker.
You want to look at your GFE or Good Faith Estimate and your Truth in lending they have to give you this with in three days of loan application this is where you can look
Fees are around 3-6% of the loan amount this includes every thing depending on the program and what state you are in some states charge higher taxes and thus would increase your average to the higher endor this example
Well I do not know what your credit score is or you income situation so it will be hard to tell you what to expect on your interest rate or what your LTV would be
I can tell you that you may beable to get a HIGHER LTV if your credit score is above 620- 680+ you could get as high as a 100% loan.
Also check to see what type of loan it is that they are offering. Is it an ARM or is it fixed. Will there be any prepayment penalties, etc. As was previously mentioned if your credit is in the mid 600’s, you should not have a problem getting a decent rate without points.
I agree, owner-occupied with decent credit and full documentation of income and assets (W2’s, paystubs, bank statements), you should be able to get a rate around 6% with no points, and lower with points.
References are a good idea, but also keep in mind that the broker will of course give you the names of his or her happy customers.
One way is to comparison shop a few different lenders with respect to fees and rates. Also, remember you are also buying a service, not just rates and fees, so make sure your broker is knowledgeable, creative, has stellar follow up skills (returns your calls promptly), and has your best interest in mind.
Another suggestion is to ask some people you trust- family members or good friends- who they have used in the past and had a good experience with.