What questions should I ask a mortgage lender in Bloomingdale ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.
USDALoanInfoNJ is going to go through 10 different questions that you can ask your mortgage lender in Bloomingdale. Be aware that your USDA Loan or Mortgage broker will be getting the loan that you need and the service that you want.
The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.
How Much Will a Mortgage Broker Cost?
Most mortgage lenders in Bloomingdale actually work for free.
So it doesn’t actually cost you anything in order to do it.
They get money because they are paid by the banks when you successfully get a loan.
So they get a small commission of the loan that you apply for and if you get it.
Self Employed Loans: Influencing the Affluent Too!!
So most mortgage brokers in Bloomingdale will work for free and it won’t cost you anything.
However, there are some mortgage brokers out there who do require deposits or who do require you to pay.
So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.
How much do Mortgage Lenders earn in commission from me and from my loan?
This is less to understand exactly how much they make.
You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.
But it’s more to understand whether or not they’ll be willing to give you this information.
A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.
A "New" Loan Product USDA Loan Guarantees
If they skirt around this issue and they don’t tell you how much they earn.
Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.
So, I’m just trying to establish whether or not this mortgage broker in Bloomingdale is someone that I can trust.
And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.
So ask that question and see how they respond.
Do Mortgage Lenders Invest Themselves?
Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.
However, if they are interested in property in Bloomingdale, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.
They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.
If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.
Zero-Down Home Buying with a USDA Loan
Some of the mortgage lender folk who work with people who are doing particular investment strategies.
So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.
Marc Jablon, RealtorBlockedUnblockFollowFollowingFeb 1, 2017The South Florida real estate market has been trending upwards with great momentum for some time now, although that growth is likely to begin to slow in the near future. Likewise, interest rates have remained low for a number of years, but have recently begun edging up over the past few months and are expected to continue to rise in 2017.To put it another way, if you’ve been thinking about buying real estate — especially if you’d be a first-time homeowner — now is the time to take action before it’s too late.For many prospective buyers, however, it isn’t a lack of motivation which is keeping them from jumping into the real estate market; it’s the belief that they simply don’t have enough money saved up in order to afford a down payment.Sure, traditional mortgages have historically required a 20% down payment. If you were purchasing a $300,000 home, you would need to bring at least $60,000 to the closing table. But today there are a wide variety of different mortgages and financial products available to make homeownership a reality with as little as just 3% down for most people with decent credit, and even 0% down for buyers in certain situations.Conventional MortgagesConventional mortgages are the loans which are most often associated with needing a 20% down payment. Thanks to the help of Fannie Mae and Freddie Mac, however, conventional mortgages are available to buyers with as little as 3% down.Fannie Mae and Freddie Mac are government sponsored enterprises (GSEs) which help maintain stability in housing and open up liquidity in the mortgage market. One of the ways in which they accomplish this is by guaranteeing consumer mortgages which meet their minimum set of standards. This means that even if the borrower stops making their payments, the GSE will ensure that the lender recoups their investment — giving banks and other financial institutions incentive to lend to more buyers.Fannie Mae and Freddie Mac both have programs which provide up to 97% of a home’s value, allowing buyers to come to the closing table with just 3% down. For a $300,000 home, that means a down payment of just $9,000. One downside, however, is that these loans are usually only available for buyers with good to great credit — a minimum score of 660 is typically required.FHA LoansFor buyers who don’t qualify for a conventional loan backed by Fannie Mae or Freddie Mac, FHA loans offer a great alternative. As the name implies, FHA loans are backed by the Federal Housing Administration, and protected through mortgage insurance paid for by the borrowers.This allows lenders to offer financial products which require as little as 3.5% down to buyers with a credit score of 580 or higher. For hopeful homeowners with a credit score between 500 and 579, mortgages are available which require a reduced down payment of 10%.Another benefit of FHA loans is that while other mortgages require the down payment to come directly from the buyers, these products allow for alternative down payment sources, including receiving the funds as a gift from a family member or friend, from a government down-payment assistance program, and even from the seller in the form of a credit on the closing statement.VA LoansFor prospective homebuyers who have served or are currently serving in the military, VA loans are tough to beat. These mortgages are secured by the Veterans Administration for all active-duty and past service members who meet their list of eligibility requirements. These VA loans offer 0% down financing, and unlike most other types of low down payment loans, they do not require the borrowers to pay for mortgage insurance.Not every veteran will qualify for a VA loan, however: lenders still follow their own set of lending guidelines and in most cases will require a minimum credit score of 620 for approval.USDA LoansAnother great product available to buyers who are looking at suburban and rural properties is a USDA loan. These loans are backed by the United States Department of Agriculture and provide 100% financing for residential real estate outside of major urban areas. To put it in perspective, 97% of the land in the United States qualifies for a USDA loan.Similar to FHA loans, mortgages backed by the USDA allow closing costs to be gifted or paid for by family members, friends, or even the seller. Mortgage insurance is required on USDA loans, but is normally wrapped into the monthly mortgage payments. Since December 2014, the USDA has required a minimum credit score of 640 on all loans that they secure.Is It Really This Easy to Get a Loan?For the majority of buyers who have at least a decent credit score or better, yes, getting an affordable home loan at a reasonable rate is still pretty simple. That’s because there are so many different programs currently available to minimize the amount of money needed at closing. This helps the buyers who otherwise wouldn’t be able to afford the 20% down payment traditionally needed to purchase a home. And luckily, it doesn’t look like those programs are going anywhere anytime soon.But the market conditions we’re currently experiencing, on the other hand, are likely to undergo changes as we progress through 2017. Home values are continuing to trend upwards, and interest rates are steadily moving higher as well. This means that while low down payment mortgage options will still be available for some time to come, rising home and mortgage costs will cause housing affordability — and purchasing power — to decline in the near-to-mid future. In other words: if you’re thinking about buying, now is the time to do so.Marc JablonNew Harbor RealtyJablonTeam@gmail.com561–213–6139http://www.JablonTeam.com
So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for cause that way I know that they can negotiate on my behalf and they can get this deal across the line.
What details do Lenders need from me?
It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.
You might need pay slips; you might need proof of identity, all of that sort of stuff.
If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.
Mortgage Lenders Making The Right Choice
Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.
So the easier you make it for them, the more likely you are going to get better service.
What can I do as a client to make this go as smoothly as possible?
You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.
And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.
They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.
You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.
And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.
So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.
You want to see them get paid.
You want to see them do an easy mortgage so they get paid easily.
And so you can develop a relationship into the future.
Which lenders can I borrow the most from?
Most people go into a mortgage broker looking for the cheapest interest rate possible.
What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.
However, they might not showy ou banks that will lend you more money than you potentially need at the moment.
Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.
Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.
Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.
And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.
Because, yes, interest rate is important but how much you can borrow is also important as well.
Can I see a full list of my borrowing options?
Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.
And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.
You’re probably going to still choose from one of the top three ones.
But you just want to see that they’re giving you the full amount of information.
And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.
And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.
So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.
Will this put a mark against my credit file?
And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.
When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.
And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.
So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.
But if you’re getting lots and lots of marks against your credit file, then that could be an issue.
So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.
How soon can I revalue or borrow again?
So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.
There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.
So, speak to your mortgage broker about the lenders that will allow you to revalue faster.
And basically, this will give you an idea of how quickly you can revalue to consider going again.
You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.
Will My Loans be ‘cross-collateralised’?
Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.
And basically, you want to avoid this at all costs from what I hear.
And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.
So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.
So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.
If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.
You can see what high rental yield properties look like that are likely to generate a positive cash flow.
Did You Know – You Can Get Pre-Approved for a USDA Loan in Bloomingdale?
Chastin J. MilesBlockedUnblockFollowFollowingDec 22, 2015Before you start searching for a home, the first questions you need to ask is “How Much Can I Afford?” Unless you plan on paying all cash for your home, this is not a question you can answer on your own. You will need the assistance of a mortgage loan officer. A mortgage loan officer will be the one to qualify you for a home loan or commonly referred to as a mortgage.There a different mortgage programs available but they do all have different qualification requirements and different terms. Your specific financial situation will determine the type of loan that would be best for you. One very common type of loan is a FHA loan. Recently, I interviewed one of my loan partners so that he could give us all a better understanding of the FHA loan. This is what he had to say:Chastin: What is an FHA loan?Daniel: An FHA loan is a federal housing administration loan. Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. It is designed to be an affordable alternative to help more people live the American dream of home ownership. FHA loans are popular with mortgage borrowers because of lower down payment requirements and less stringent lending standards.Chastin: What are the qualifications for an FHA loan?Daniel: Someone like me, a DIRECT LENDER can go right to the government guidelines with no investor overlays, with that being said it is required per FHA guidelines to have a 580 credit score minimum with established credit history. The higher your score, the better interest rate one will be approved for. Your DTI ratios have to be below 43% for scores under 620, and 57% for scores over 620. And of course the 3.5% down payment, which can be gifted from friends family etc.Chastin: What is “DTI” for first time home buyers?Daniel: Ah yes, debt-to-income ratio. It is the mathematical equation of your monthly debt obligation associated with your CREDIT REPORT and other LIABILITIES (child support, alimony are good examples and it does not include utility bills or anything of that nature) divided by your monthly income. For example someone with a $300 car payment $50 in credit card minimum payments and $150 student loan payment, would have $500 in monthly obligations plus proposed housing payment divided by income for DTI ratio.Chastin: What is the minimum down payment required for FHA loan?Daniel: Minimum down payment is 3.5% of the borrowers own money or gift. It cannot come from seller concessions or selling party. All money needs to be sourced and verified. A good real estate agent like yourself can typically get closing costs covered by the listing party requiring the borrower to only come with the 3.5% to the tableChastin: What do you think personally of FHA loans?Daniel: My personal opinion- it is a great cheap alternative one can use to get into a new home. I think a lot of first time home buyers should utilize the 3.5% down payment keeping maximum liquidity in your financial situation, after all in DFW you break even on your investment into a home shortly after a year of ownership with the market appreciating so much. OR perhaps use FHA to build credit and equity into a home, as you better position yourself financially you can refinance into a conventional loan to drop the mortgage insurance required on FHA mortgages. It also is more lenient than pretty much every other mortgage product out there, which makes it easier to be approved for if you have financial struggles recently.There you have it, thats an FHA loan. I’m sure that didn’t answer all of your questions about it but it should have given you a pretty good basis. If you have other questions, stay tuned. We will be doing a video interview very shortly where we get into more detail about it.
USDA Helps Veterans Find a Place in Agriculture
Thousands of service members leave theArmed Forces each year and many of them are seeking new career opportunities.
The United States Department of Agriculture is stepping up to help.
Farming and agriculture is a lifestyle just like military's a lifestyle.
There are multipleprograms that assist beginning farmers and ranchers, not only getting startedbut to grow and thrive, manage the risk and help build critical stewardship oftheir resources.
There's both a huge need and a huge opportunity for the next generation of farmers and ranchers to come and be a part of growing the future.
Veterans in particular have a skill set and work ethic that is directly at theheart of what it takes to make a good farmer or rancher.
Farmers like Navy veteran Lenny Miles Jr.
carry the responsibility for growing food which hedoes on his family farm with his father and grandfather.
If you're interested in owning or operating a farm Lenny has this to say, It's endless possibilities where you could go as a career in agriculture orfarming and you just feel responsible to present good product for consumers andcompelled to take care of the land.
Farmers and ranchers understand that the land is aresource to be protected and enhanced Lenny uses farm loans from USDA's FarmService Agency and participates in the Conservation Reserve Program and theConservation Reserve enhancement program to improve wildlife habitat in erosioncontrol.
So with the CRP and CREP programs we take traditionally unproductive land out of farming production and put into conservation.
It's important to be a good steward of land and be responsible farmer.
But Lenny isn't alone.
Other farmers have taken up the reins as farmers.
They come from occupations you wouldn't necessarily expect.
Tom and Anita Roberson bothserved in the Army a combined 34 years in the medical field.
Tom worked in aprivate practice for several years before leaving the medical field for anew kind of field.
As beginning farmers the couple then worked on their passionand farming and not too long after they were operating their own farm.
If youwant to get into farming excuse that you have is yourself becausethe resources are there.
The government, USDA has plenty of resources.
Those resources help farmers with getting started and operating the day to day butAnita stresses you have to be ready before you start.
The first thing youwant to do is have a business plan.
You have to have a starting point andknow what you want to shoot for.
Farmers and ranchers are part of the smallbusiness fabric of America.
USDA is teamed up with SCORE, a non-profitresource partner of the Small Business Administration to connect farmersranchers and other small business owners with free business mentors.
The small farm outreach program they have a wonderful beginning farmer andrancher program where they'll take you through all the steps.
Those mentors canhelp you with your business plan and establish good foundations for yourbusiness.
There's a place for you in agriculture and USDA is here to be your partner in this exciting new adventure.
Some have already answered the call.
Come talk to us today.