davies top 5 tips- questions for your real estate lender
TRANSCRIPT
DAVIES TOP FIVE TIPS Top 5 Questions to Ask Your Real Estate Lender Before
Filling Out a Loan Application:
1. How fast can you close a loan, if started today? – This time period directly relates
to how fast you can close an escrow, thereby giving you a realistic perspective on
your competitive edge over other buyers. Closing time is often as important as the
price.
2. What type of loan, fixed-rate, adjustable, and FHA loans (among other types)
would be best for my general situation? – The lender should take time to understand
your income situation and what loan products are best tailored to you. For example,
if you receive large bonuses annually, you may want the lowest monthly payment
with opportunity to pay back a portion of the principal each year without penalty.
3. Help me understand the relationship of credit score to loan terms – The benefits of
a good credit score vary depending on the type of asset that you are financing (car,
house, etc.) and may change with the company you use as a lender.
4. What is keeping interest rates the lowest in 40 years? Will it continue? – Good
lenders can answer this question with their experience and/or sound research. They
should be able to offer you enough information to help you make a decision about
your new loan with confidence.
5. Where do you get your money for lending? What are their conditions to you and I?
The mortgage market has many levels. The actual source of the funds is the one that
most directly affects consumers. Often this is an investor other than your lender
representative. There are specific conditions that the investor will want met before
they will authorize the release of funds to you. These may include specific
conditions about the types of property in which they will invest loans, concerns
about certain developments in the local area, specific methods of documenting the
borrower’s financial situation, credit score limits, among others. Best to know these
conditions up front, well before you have an accepted offer.
DAWNA DAVIES • Davies Company Real Estate • [email protected] • www.DaviesCo.com