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Hi Jim, its Luck again, I have few more questions about financing, my banker is telling me that I can't get a better rate than 6.5% as listed although I have a 750 credit score, her reason is because she say my LTV is too high, my loan is going to be 95% of the purchase price, can this be true?
Yo, Luck--am I going to have to adopt you? (LOL) As for your Loan Officer(LO)s reference to your LTV, I'm not sure how your LTV affects your Interest Rate! Poor Credit Scores create higher risk for a Lender, therefore they CAN--and usually do--charge HIGHER Interest Rates;Good Credit Scores--like your 750--indicates a lesser risk & usually allows for the Lender's charging LOWER Interest rates! LTVs set the Downpayment requirements, and affect whether or not Private Mortgage Insurance is required! Now, the Bank you're working with may not offer any loans for less than the 6.5% your LO quoted you! Another Mortgage Banker MIGHT be willing to give you a better Rate & Terms than your current LO can (or WILL) give you.(The LO probably CAN give you a lower Interest Rate, but to do so would lower her compensation for originating/processing the loan!)Go to two more Mortgage Lenders & have these "new" LOs do a "workup" for you. Get a "Good Faith Estimate (GFE) and a "Truth-in-Lending (TIL)" Statement(for the same Loan your current LO has written ujp)at the BEST RATE & TERMS each can give you! Compare these two GFE/TILs with those done by your current Banker/LO! You should then go for the loan with the Lender who's offering the BEST Interest Rate (on the GFE) and an APR (on the TIL) not more than 1% higher than the GFEs Note Rate--,and other terms & conditions that are in your "Best Interests!" You should "shop for" your Mortgage, Luck--not just take the first one offered you. Especially if it doesn't "make you happy!" I'll bet you'll find a Banker/LO willing to do your 30- or 40-year Fixed rate loan @ LESS than 6.5% (And when you do, take it back to your current LO & ask her if she can "meet or beat it" You might be surprised at how much better she may be able to do if/when she thinks you may take the loan elsewhere!) You've got about 2 more questions you can ask of me before you "come of age," and I "cut you loose!"(LOL) A-g-a-i-n, good LUCK!--"Papa"JIM
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Jim Root
Expertise
How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!
Experience
Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!
Organizations
Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).
Publications
Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.
Education/Credentials
Associate Degree in Real Estate Studies plus:
Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years.
Bachelors Degree in Mass Communications,
Masters Degree in Education/Teaching
Awards and Honors
Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.
Past/Present Clients
No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!
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