HOW CAN I FIND A TOP LOAN OFFICER?Mortgage loan officers and mortgage sources are plentiful. However, how do you find a helpful, caring loan officer that will work for you and who has a wide range of mortgage loans at competitive rates? Dick has already established a relationship with one of the best mortgage officers around, so you're sure to have a positive experience. SHOULD I LOCK IN THE MORTGAGE RATE AT THE TIME OF APPLICATION?First, what is a "lock-in" or a "rate-lock"? This is a safe guard for you that is offered by mortgage lenders. The "lock" guarantees you the mortgage rate quoted to you at the time of application will be the same rate when you close. Locks are available for varying lengths of time. Customarily they can be secured at no cost for a period of 30 to 45 days. In the event a longer period is required because of extended closing date or for the completion of new construction, lenders will charge a fee. This fee is usually based on "points". One point is equal to one percent of the mortgage you are applying for. For example, a half of point "lock' fee on a $200,000 mortgage would equal $1,000. If you lock and the interest rates have increased by the time your closing date arrives, you are a hero. If you lock and the interest rates have decreased by the time your closing date arrives, you are a bum. So the question becomes, "to lock or not to lock". Or as Clint Eastwood would ask, "do you feel lucky? Sometimes in the market place there can be a definite forecast that mortgage rates are about to go up or down. Usually, an accurate prediction is difficult. Dick Coan advises that if there is a definite forecast, then go with it. However, if the prediction is hazy, it is better to lock and gain the peace of mind that comes with knowing that you have secured an interest rate that you can live with. Hopefully, with a well-considered decision, the result will be rewarding. AM I BETTER OFF WITH A 15-YEAR TERM OR WITH A 30-YEAR TERM MORTGAGE?Here you can see actual differences between a 15-year term and a 30-year term. It is true that you will pay substantially less interest by taking a 15-year mortgage. However, either you will have significantly higher payments or you will need to limit the buying price of your new home substantially. DICK COAN advises that in most instances a buyer should take a 30-year mortgage, which can always be repaid on the basis of a shorter term. (i.e.: 25 yr., 20 yr., 15 yr.). This gives you the option of paying the accelerated payment or the normal lower monthly payment. Discuss with DICK to determine what is best under your circumstances.
Click here to see the difference: WHAT IS THE DIFFERENCE BETWEEN PRE-QUALIFIED AND PRE-APPROVED?Sometimes these two terms are used interchangeably; however, there are significant differences. This difference can be the difference of knowing your contract is solid from the very beginning or having your purchase fall apart somewhere prior to closing. Being pre-qualified for a mortgage means that you have spoken to a loan officer told them your income, debts and assets. The loan officer then issues a letter saying that based of the facts supplied, you are qualified for a certain mortgage amount. Once you purchase a home the loan process is initiated. Being pre-approved means that you have spoken to a loan officer and that you have provided them with your income, your debts, and your assets and authorized them to verify all of the information and to complete a credit check. This essentially puts your lender in a position that they can approve you as a buyer, even though you have not purchased a home. This process will establish your maximum buying power and your maximum affordable mortgage payment. You are approved! Once you have under contract the home you have selected, only the appraisal of the home's value needs to be done. This process can be done quickly and it eliminates any doubts or questions about mortgaging your purchase. You know exactly where you stand. When negotiating with a Seller, it is like having cash in your hands, because the Seller knows that you have the resources to purchase the home. RENT VS: BUYINGPresently there are a variety of mortgage products that allow a buyer to buy with very little or no money down. To estimate the differences between renting and owning, just click on this site. http://www.ehomecredit.com/buyvsrent.html SENIORSDick is always available to help seniors stay in their homes. Often it can be arranged with a type of financing called a reverse mortgage. These mortgages provide seniors with the flexibility to remain independent and to address their financial needs. For homeowners over the age of 62, these mortgages offer a way to borrow against your home equity to create a regular and tax-free source of income or a significant source of ready cash; all while you continue living in your home. And, you don't repay any part of the loan as long as you occupy your home and maintain the terms and conditions of the loan. No monthly payments are required. Reverse mortgages can be a part of sound financial planning. Dick can help you find a lender for the reverse mortgage that best suits your needs. |