Home buyer myth #1: I need to shop banks/ mortgage cos. to see who has the best rates Fact : every bodys rates are about the same. You want to know about their fees. That can vary widely. There are some mortgage companies who send out letters proclaiming rates below the market. I know, I get these myself. Once the low rate hooks the buyer, they find out that they are paying thousands at closing to buy down to that rate. Get a good bank/ broker and stick with them. Preferably one that has local underwriters. Many times, I have had clients waiting more than 10 days to close because their file was still in underwriting it has been in underwriting for days before anybody looked at it. They had hundreds ahead of it. To these people, closing dates are irrelevant. I once had a client who wanted to use an out of state mortgage company because they would pay half of his $4000 V.A. Funding fee ($2000). I was skeptical. Upon further examination, I found out that they would pay the $2000 for him, but they would charge Him a $7000 origination fee! Dont trust lenders who play the shell game like that. If it sounds like it is too good of a deal, run. More myths later
Posted on: Sat, 24 Jan 2015 03:18:51 +0000
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