MASIGNCLEAN101

Direct Lender Loans

Direct Lender Loans
Tuesday, 15 October 2019
How To Shop Lenders and Win!

Hi I'm Sarah today I want to talk to you about how to correctly shop a lender for rates so that you get the best deal the most savings now I've been a mortgage originator for over  leven years this is what I do all day all night and I see a lot of mistakes that people are making when shopping for aid and it's making it so they don't get the best deal so I'm gonna share with you my top tips so that if your rate shopping you get the best deal so tip number one.

You're gonna want to compare all the lenders on the same day the reason is this so if you get Bob's rates on Wednesday and Mary's rates on Fridays they're not they're not Apple to Apple because the markets change every single day and markets can have fluctuations  can see as much of a quarter percent change in one day so you might be talking to Bob on a good day Mary on a bad day but if you talk to them.

Same day Mary might be better so you want to make sure that you're shopping the lender within the same day and I would usually say a four hour window you just have to sit down and do it and if someone says oh I can't do rates over the phone why they're yeah you can if you say to a lender a lender is always going to need basic information loan amount if it's a purchase ow much you're putting down what your credit score is that's what we need to pull rate we can pull rate some of that o in property type okay and you can compare based off of that now the second place where people mess up is they get the rates but they forget to ask what are your fees okay and that one can be a little bit tricky so I would always say to an originator hey can you just email me what your fees.

are you know your fees your company's fees to do the loan so I just have it okay you don't want them to send you something with title and escrow fees because they don't control that that's a third party you do want them to give you what they think the appraisals going to be once again they don't control it that's a third party you care about their fees okay because once again if bob is offering you four percent but his fees are four grand and Mary's offering you four point one two five but her fees are a thousand dollars right you got to get the fees okay and you want to make sure that when you're looking at the fees you're not focusing on noise okay but I see a lot is people are like oh well if I close with Bob my closing costs are only six thousand dollars whereas if I lose with Mary they're eight  housand dollars and when you  ook at it you go well yeah   because Bob estimated your property taxes  is if you're in a different state like of course that's wrong the  origination charge which is what the actual lender charges may be less over here but if they're estimating something different over here it just doesn't line up so you want to compare the origination fees now something that would be considered an origination fee would be underwriting processing at fie credit report fee flood cert fee there's there's sometimes there's a lot of junk fees get thrown in there so you really want to know what you're dealing with an entirety because sometimes an originator will say well I don't have any fees but there's a thousand dollar underwriting fee a two hundred dollar processing fee a $75 doc drawing fee like it could be endless so.

You really want to understand that the third thing you gotta get your BS detector out I know we all have one but you gotta use it so if you talk to three lenders  and let's say I mean Bob and Mary are getting a lot of abuse but let's say Bob's at 4% Mary's at four point one two five and Jane is at three percent yeah I would be a little bit suspicious of Jane because you'll see changes like the most I usually see between lenders is going to be half a percent maybe point seven five over a percent but a full percent is crazy dramatic and the odds of them quoting the same program loan program is really low and one of the things that we see is you know I'll get a call and someone will be like oh well Gary can give me three and a quarter percent and  I'm like is that 30-year fixed-rate and they're like well he said it's a 30-year fixed loan I'm like no no is it are you sure and they go wait he said it's a 30-year loan.

Okay that's an alarm so if the lender says it's a 30-year fixed loan that means the rates fixed for 30 year sif the lender says it's a 30-year loan that doesn't mean anything it means that the loans for 30 years but it doesn't mean the rates fixed for 30 years and a lot of people will to you'll go well it's an arm right and they'll say no no no it's a hybrid okay the hybrid sales pitch like if your lender.

I have lenders the watch says and you do the  hybrid sales pitch like you should just slap yourself across the face right now it is so gross and lame so for a consumers watching this cure house 8 the hybrid pitches this it's an arm it's an arm it's an adjustable rate mortgage on a 30-year term so is fixed for a certain period of time 3 5 or 7 years sometimes 10 years and then it can adjust thereafter you if you think it's an arm you're a it's an arm okay but it gets sold as no no it's not an arm it's a hybrid it's on a 30-year term it's like a 30-year loan it's just you've got this special rate for 5 or 7 years it's an arm on a 30-year term your rates gonna change after 5 or 7 years locked at so you just want to be really really aware that sometimes people aren't gonna be the most ethical when they're talking to you because the bottom line is is that mortgage origination a lot of its sales and sometimes there's people that are just pure sales and that can be really dangerous as it can see because you're trusting them to have your best interest at heart and as we know in life not everyone's always gonna have your best interest at heart so three tips number one compare your lenders on the same day within a four-hour window number two you need to compare their fees their fees not title and escrow not taxes not appraisal because all that's gonna be the same no matter what lender you pick and  number three get your BS detector on because you need to watch out for the scam artists because they are looking for you so I hope this has been helpful if you ever want to shop a rate quote please reach out to myself or my team we are always happy to give you the straight truth and bare facts thanks so much for watching.

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Sarah