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What Lenders Dont Always Tell You
Dated: April 6 2013
It is time to come clean on what is happening in the loan mortgage market these days. I have seen this so many times over the past two years now that I, like many of our clients, am getting really weary of the state of the state in the banking industry today.
The first thing we tell clients, no matter their economic status, their relationship with their lender or how much money they have in the bank is this You need to be prepared to talk to more than one lender. So often I hear I have been doing business with this bank for 20 years and I have always used them. What consumers dont seem to understand is simply that their banks have eliminated many of the loan products that they used to carry, and Fannie Mae and Freddie Mac have tightened up their criteria for buying loans on the open market making it harder for banks to make home loans.
It isn't necessarily your credit, or your debt to income ratio, or your down payment amount. There are still products for everyone out there. Products like USDA that loan in rural areas and have an income cap for lower income families, or FHA, which only requires a 3.5% down payment. These loans are out there, including conventional loans with 10% down BUT not all lending institutions are the same. More than ever you have to shop your loan requirements to find the best deals for you! The other piece of advise that I feel is important when shopping your loan, GO LOCAL. Do business with a lender who knows the market you are buying in. They can anticipate challenges you will face and many times preempt them.
There was a time not long ago when we used to say to clients, yes go to your bank, Im sure they have a product that will satisfy you! But today we encourage all of our clients to visit at least one mortgage broker who typically has access to many loan products and are not hamstrung by individual bank policies.
So my advise for the day is DONT GIVE UP! When you hear from your first lender, Im sorry I cant do the loan be proactive and visit the second lender or the third lender if need be. We are in a new world of lending ladies and gentlemen and the early bird truly does get the loan!
The Steamboat Luxury Team -Vicki Jackson and Mike Shuttleworth Vicki Jackson has been a Realtor for 11 + years and comes from a long line of Realtors. She has specialized in luxury resort and ranc....