When choosing a good mortgage lender, whether you choose a mortgage broker or a mortgage banker, you’ll want someone who can do the job right. Finding a lender who will take the time to make sure you understand the different loan programs being offered, and will help you decide which loan best meets your needs is key to having a smooth closing. Check out the articles, columns, blog posts, radio shows and videos for more information about mortgage lenders.
How To Select The Best Lender For Your Mortgage
A prospective home buyer has begun researching lenders and is wondering if it's better to go with the lowest interest rate or a lender they're familiar with. Rates are different between lenders because each end investor wants a different amount of profit for the use of its cash. The best thing you can do before you sign up with any one lender is do some diligent shopping around.
Construction-To-Permanent Loan Ends With Higher Rate
A lender is quoting a higher rate than other lenders for a construction-to-permanent loan. The loan has a prepayment penalty, so the borrowers can't go with antoher lender. Ilyce recommends going with the original loan to avoid fees and then refinancing as quickly as possible.
Reporting A Bad Lender
If a lender won't provide you with a good faith estimate, or any other important information you ask for, they might be trying to do some shady dealings. After discovering closing costs are too high and canceling the loan, a borrower asks about where to file a complaint against a lender. To find a better lender, always interview at least four or five different types of mortgage lenders at the same time, and try to compare the loan programs on an apples-to-apples basis.
Avoid Scams When Refinancing
A reader fears they have been scammed on the fees for their refinancing. Ilyce says they need to compare their loan to other offers to determine if they have been scammed, but she emphasizes the importance of shopping around for a lender.
Networking Your Way To New Clients
Whether you're a real estate agent, lender, home inspector, or other member of the home buying and home selling team, the best way to develop and sustain your business is to network amongst friends and family. Let everyone know about yourself and your business. Offer special deals to get them to give you business. Take advantage of networking on the internet.
Protect Assets From Lawsuit On Rental Property
When you own rental or investment property you may be concerned about liability. You may want to transfer your property into a limited liability corporation (LLC), but that could cause your mortgage lender to call your loan in for full payments. There are other ways to protect yourself from lawsuits when you own rental property and aren't ready to pay off the mortgage.
Refinancing Home With A Bad Credit Score
Can you refinance your home if you have a bad credit score? Ilyce discusses how to make corrections to credit history, and boost your credit score so you can work with lenders and refinance your home. Ilyce also offers tips on how to improve your credit score and refinance your home within six months.
Mortgage Broker Demands Fees After Cancelling Loan
A borrower canceled a loan after seeing that fees had mysteriously increased, and now the mortgage broker is insisting on payment for his service. This borrower should write a letter to the mortgage broker informing him that he has violated many of the laws under the Real Estate Settlement Procedures Act (RESPA). It's also a good lesson to never give a lender cash until you know exactly what you're in for.
Gift Tax On Cash Given To Kids To Pay Mortgage, Buy Home
Parents who want to sell their home to a child are better off giving their kids cash toward the down payment for the home or the mortgage. The IRS allows you to give $11,000 as a cash gift tax-free each year, which the kids could use to pay the mortgage when buying the home. Giving your child enough cash to miss the gift tax will help them get their mortgage loan and buy the home.
Selling Your Home With Mortgage Prepayment Penalty
When you sell your home you may face a mortgage prepayment penalty if you still have a mortgage loan. In addition you may have to pay taxes on the profit from the sale. To determine the best way to structure a real estate sale when you have a mortgage loan with a prepayment penalty you should contact a real estate attorney and accountant.