Is this normal?? Does that mean that the other lender has denied me?? She said she is still working with the first lender, but she thinks that this other lender might be able to give me a better deal.. What do you guys think??
Who knew that putting a mortgage on a free and clear house worth over $550k would be so difficult!!!!!!!
I was also thinking of trying to get the home equity loan through one of my credit card companies (Bank of America or Capital One) or my bank.. Would that be wise or should I just let my broker keep working on it?? What is a reasonable time frame to expect this thing to be done if she submitted my "packet" to the new lender first thing this morning??
Any help and advice would be greatly appreciated!! Thanks in advance everyone!!
2007-05-11 09:28:50 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Anyone can be ok. You just have to consider the interest rate, closing costs (they will all have some kind of closing cost) and the time frame you are wanting the loan for.
If you are looking short term you will want to be more concerned with the closing costs. If you are thinking long term you will want to be more concerned with the interest rate.
2007-05-11 09:36:43 · answer #1 · answered by darrenwelsh429 2 · 0⤊ 1⤋
That's totally normal. That's what brokers do. They "shop" your loan package around (so to speak) to different lenders. Usually, they'll do some homework first. After they assess your situation, they will look for a loan that fits you. This is based on your income, your credit score, your down payment, if you're a first time buyer, etc. Once they find a few lenders who have something good, they'll submit your paperwork to them. It's quite simple.
Depending on the appraisal, and the LTV of your loan, you might be able to take some additional money out when you apply for your loan. For example, the house is work 550K, but the asking price is 500K. You want to make some repairs as soon as you move in totaling 15K. In the case of 100% financing, you would ask for 550K, but for the rehab work, you might be able to borrow that extra 15K and roll it into your loan. (I hope that makes sense).
A reasonable timeframe is 7 business days or less. It shouldn't take long.
I wish you the best w/ your new home! :-)
2007-05-11 09:40:32 · answer #2 · answered by YSIC 7 · 2⤊ 0⤋
It could be your broker is trying to get you a better rate or the conditions their investor is requiring may be somewhat steep. If you are want answers to your questions, ask your broker. They should tell you exactly what the problem is. If they try to evade the questions, then Yes, trying getting the loan through someone else.
Helocs (Home Equity Line of Credit) are revolving lines of credit much like a credit card and usually the rates are higher than a first mortgage (owner occupied).
2007-05-11 09:58:21 · answer #3 · answered by Anonymous · 1⤊ 0⤋
'Shopping the Loan', that's what they call it in the industry and that is normal. You would like to take a look at your options and compare rates and programs.
Now, you do have a point...if you are looking for a home equity line (HELOC), by going to your current Lending Institution you will bypass the 'broker fees' and perhaps get a better 'deal'.
Hope this helped.
Daisy
2007-05-11 12:27:27 · answer #4 · answered by Daisy 2 · 0⤊ 0⤋
The problem is that you are dealing with a broker. They make their money by over charging fees and marking up the rates. If you have a house that is worth 550 and paid off, unless your credit scores are in the complete pits, then you should not have an issue. I am a direct lender and if you need any assistance hit me up.
http://www.capitalonehomeloans.com/LoanProf/?UserID=477
2007-05-11 09:37:01 · answer #5 · answered by twinturbo1994 4 · 0⤊ 2⤋
Your lender could be trying to get you a better rate than the first lender. It is normal.
2007-05-11 09:49:16 · answer #6 · answered by Toni 1 · 2⤊ 0⤋