https://www.youtube.com/watch?v=bswfOwDpUOA&list=WL&index=5
Today we're going to be talking about how to find out if you're getting a good rate and if the fees you're being charged by your lender are fair. Now, I bring this up because I spend way too much time on Reddit. I'm just trying to get the exact thing someone posted, but I see this a lot where it's always first-time home buyers' mortgage questions.
Hey, I'm closing in a few weeks. I just got a worksheet from the lender, and there's $14k in non-APR fees, $2K in APR fees, for a 10% down payment. Does this sound legit? Dude, no one can answer that. I'm going to tell you guys that right now.
Now, the other thing that I'll see is someone will upload a loan summary and a loan estimate, excuse me, and it will show where they're locked, and you know, it will have what the rates and the points and fees are. That's closer, but what I'm going to teach you in this video is what information we actually need as a lender in order to tell if you're getting a good deal. If someone's telling you yes or no without the answers to these questions, they're just full of it.
Okay, so the first thing is, what is the purchase price?
We need to know how much you're putting down.
What type of loan is it? Okay, is it conventional, is it FHA, is it VA?
And if it's conventional, we need to know what the occupancy is. So, when I say occupancy, I'm talking about is it owner-occupied, is it a second home, or is it an investment property? Because the rates between those are very different. I've made the mistake before where someone sent me a loan estimate, I was looking at it quick, I didn't ask the question, I said, oh my gosh, you're getting ripped off, and then when I talked to them more, I found out it was a second home or an investment where the rates and fees are much higher, and upon review, it really wasn't that bad. So, we need all that information.
Now, what else? Credit score. Credit score is critical, and what's so interesting to me is often when people are posting loan estimates or saying does this look good, they're not putting their credit score. In order to determine if it's a good deal, we need to know your credit score. For certain loan programs, the amount your rate is going to be will 100% be based on credit, and it's not always the lower score is the higher rate. There can be variances, so it's important to let everyone know what your credit score is.
So, let's go through it once more:
That is what we need. Those are the factors that I'm looking at when I'm pricing out a loan.
Now, something else to keep in mind is that you can call a professional. Guys, like I always tell you, look, text me at 774-780-637. I am more than happy to look at your loan estimates and be like, yeah, this is really good, or this is a terrible deal. I do it all the time, all the time. It's why I know certain lenders, their pricing's whack. So, if I'm talking to someone on the phone, and they're like, yeah, I've been talking to, and I'm like, whoa, whoa, whoa, whoa, whoa, let's talk about this, because I've seen so much of their pricing.
So, look, it is a good idea to see if you're getting a good deal. Now, with any of this, right, if you have a loan estimate but it's not locked, it doesn't actually mean anything unless the lender is going to lock it. So, I hope this quick video has been helpful. But look, if you want to post on Reddit or in a group about if you're getting a good deal, just make sure you put all that information, so the lenders like me that spend way too much time in there giving advice can give you guys a good idea on if it's a good deal or not. And if you're like, Jen, I don't want to post, shoot me a text, guys. I'm happy to look at it, as is the team. Thanks for watching.