loan, agreement, signature

HOW TO CHOOSE A LENDER

There are several schools of thought about how to choose a lender for your home purchase. If you are an investor, I will share that information after I evaluate your situation and can make suggestions or referrals. If you are purchasing a home, one thing that I want all of my clients to experience is the very best lender and loan program. While there isn’t a big difference between brokerages such as: ReMax, Sotherby’s, Weichert, Compass or Invincible Vision and you can feel free to select the agent or associate broker of your choice, it is the opposite in my professional opinion when discussing your loan options.

The three things that you should consider are:

  1. How they decide if a loan qualifies for commitment
  2. How much they will charge you in fees
  3. How quickly they respond to your phone call/email/text

I encourage all of my clients to ask the following questions to any lender:

  1. What is your Debt-to-Income criteria for your VA, FHA and Conventional Loans?

The government provides criteria but each company and its investors can decide what their company policies and financial expectations are of each candidate seeking a loan within legal parameters.

  1. What are your credit score requirements for your VA, FHA and Conventional Loans?

One company can require you to have a 620 credit score and another can require a 580. You will not know what they are evaluating without asking this question and you cannot move beyond the qualification process without first meeting the credit score requirement so please be sure to ask this important question.

  1. What other programs do you have available that may be unique to your company?

This is a fantastic question. For example, Navy Federal offers a 100% program for people who are not using a VA Backed Loan. Suntrust at one time offered a special program for Doctors. What you have to determine is whether those financial loan “products” are better than the  offer that you would receive from another company.

  1. What is the lowest interest rate possible for your credit score? Do they negotiate?

Most loan officers will say that they don’t negotiate the interest rate that you receive but this is untrue. This is why I encourage my clients to apply for a mortgage (all three on the same day) and see what the preapproval is that they offer to you.

give, key, receive

Disclaimer: You will need to have a preapproval letter before we can go out to see houses. I understand that some agents will let you in to see any home without a signed agreement but their company policies fall outside of our licensure (legal) guidelines. I don’t have an answer for how they are able to do it as a company, but in general this practice is not legal and could cause repercussions for us. According to the law, we cannot show a home without a signed buyer/broker agreement and we cannot put in an offer without this paperwork completed either. In my experience, buyers become confused about the process because of the way some agents differ in conducting the operation of their businesses. Please remember that seeing a home without being qualified first could lead to disappointment. We want to set you up for success and we want you prepared to make an offer on the home you fall in love with when you go out with me or anyone on our Invincible Vision team. We also want to be sure to follow guidelines set for us so that we can continue to help you and thousands of others to make their dreams come true.