Something the realtor and the lender can do is educate the clients beforehand with this situation too. I know you guys do that to some extent, but this sounds like an anecdote that would good to share with future clients before they even find a house
When should I be done shopping my rate? I’m 3 days into contract and yet I feel I’m being pressured by both lenders and my realtor to hurry up and make a decision, yet neither have gave me a 100% locked in rate. Not sure what to do.
In theory, you’re supposed to be able to shop multiple lenders with a 30 to 45 day window. Keep in mind until you’re ready to lock your rate, It’s all nonsense and non binding anyways. Research the lenders and actually look for an expert instead of just chasing a rate that you may or may not get.
@@JenniferBeestonok thanks. I got a pre approval from my bank today the rate was 6.6 percent but I’m not comfortable with the closing cost or the monthly payment so I’m going to shop around.
Thank you. I have a question about 7/1 arm and 30 year fixed loan products. Do we pay the principal at the same rate for both loan products. I just want to make sure I am not falling into interest trap by choosing 7/1.
@@JenniferBeeston Thank you for responding back. I have talked with my lender about that and there in no interest trap, after doing math I found I will be paying more towards principal rather interest for the first 60 months/5 years in 5/1 arm compared to 5 year’s payments in 30 years conventional. So basically I am building little bit more equity compared to conventional for the first 5 years. Yes, there is risk involved in 5/1 arm after 5 years and I figured out possible solutions to subdue it.
So many times, people truly believe what they've been told, and unfortunately don't have the knowledge to ask important questions. We had a saying in the military, and it stands today as a testament of those that did not prepare corectly: "Lack of preparedness on YOUR part does not dictate an emergency on MY part. Thank heavens they got help from a very caring professional, or they could have been out of luck. Love your channel!
I have very little symapthy for that buyer. They got greedy with perceived savings and gave no consideration to the extra effort others have to make. The "Stupid Tax" strikes again.
You said you are not good at construction loans, Are construction loans different from New hom builds by a developer building and entire neighborhood and the buyer picking one of the available models?
Great question as I agree it is confusing. We do new home Communities all the time. We just don’t do if you are buying land and then Hiring a builder and paying the builder before the house is complete.
Okay I get confused with the shopping around for rates. Do we shop around before getting preapproved or after? Do we have to get preapproved with every lender we shop for a rate with? When do you “locked” in?
It’s really hard to shop right now with the volatility of the market. Right now most lenders are not locking till you are in contract. Check out my video today as I cover a few of your questions.
my creidt left me with basically no option but homepoint ~630 credit score with collections and bunch of cc defaults in past 7 yrs just happy to be getting a house my rate is 4.375% closing 4/4
I’m dealing with a broker right now that’s hiding part of the fee to buy down the rate in their “origination fee” and “underwriting fee”. After talking to other lenders, it’s an overall good deal but still irks me that they would do that. Feels like I’m being lied to. And this is someone referred to me from a friend
Great advice! You need things in writing. I never take someone’s “word for it”. Buyers need to do their due diligence and read things, compare LEs, ask questions, test the lender’s competence, etc. Home loans are financial products, and if you don’t know what you’re doing you should pump the breaks on making such a big purchase in the first place.
You can. I have tried several times to educate but sometimes the person controlling the narrative, I this case the other lender, has them convinced otherwise.
Can you do a blog on is it a good time to buy now? Or wait? It’s very frustrating for my situation, I have good credit and a decent down payment yet everything seems uneasy with the feds raising the rates.
will your loan officer reach out to you if you no longer qualify for the loan due to the rates going up? Also, what if the builder is giving you money towards closing but you found a better rate with someone else, does that mean now you have to put all closing down since now you are not going with that builder? unless of course the new lender offers some closing if at all..thanks in advance..do you specialize in VA loans?
Yes I specialize in VA. What the builder credit will do with closing costs credits depends on the builder and what your contract says. Some lenders reach out and some do not. We do our best. Jen A on my team calls people constantly gets voicemails and ghosted when we are trying to warn people. Best to check in with your lender every few weeks. Stay in front on them
This was a great story and I really like your explanations, but I am still confused about one concept you breeze over at 4:26 min mark: Can you explain what it means for the Lender to say there is a "point charge" to the rate on a rate that is higher than they originally locked with the client? Does that just mean that in order to get back to... say 6% instead of 6.5% interest, the client had a point charge to pay for too? In other words, there was the option for ZERO points charged but the client would have ended up with a rate like 6.5%.
Hello. We are going to be trying to buy a home in the next 6 months. It's not an ideal time with rates etc but it's what we want and it's time for us. With that being said and the rates being all over the place day to day, and going up. Would you say it's best to find a lender with decent fees and decent rate compared to others and close and then in years to come if rates go down look into refinancing? I think shopping and shopping and buying lots of points is an option but would like your opinion on that? Also about about a 7 or 10 arm? Rates seem to be a bit lower but it's a gamble with rates. Are they going to go back up to where they were 15 years ago and stay? I'm leaning towards 30 year VA and shop around some. Get in contract, locked, closed go about our lives and in a few years if rates are lower look into refinancing. I appreciate any insite. Also will be reaching out to you in the coming months for a quote!!
Have you worked with someone the that has dealt with or is dealing with a bankruptcy? I'm100% TTD disability and on SSDI, my bankruptcy discharged date was 5/26/20, I did find a piece of paper that says it's 5/20/20 so I'm not 100% sure which one it is. I need to contact the bankruptcy lawyer that I had to find out for sure. I know I can't do anything before that 2 year mark, but my lease is up here in Georgia on July 31st, and I need to find a house and be able to close and move in by August 1st. Will 2 months be enough time to go through the whole process and be able to get into a house by August 1st? Credit Karma says my score is (641-643) as of today. I would like to move to Florida, but not 100% on that either, have looked at homes online in Florida, Georgia, South Carolina and North Carolina. I really want to be close to the coast as possible. Thank you for your help.
We see BK’S every day. In theory it should be enough time. Give me a call and I can walk you through it. If you get My vm leave a message and just mention I said jen b to call back as otherwise my team calls you back as quickly as possible and the above is a touch complicated. 707-478-0637
Something that your sister should focus on is her relationship building. How much trust does her clients have in her to leave for a very minimal change in interest rate and payment that late in the process? How much confidence did the realtor have involved have in the lender? Great information and content!
Hi Raymond, This happens to all lenders including myself. If someone is only focused on rate and “saving money” they often disregard everyone’s opinions. My guess is it was so easy to get approved with my sister the client assumed it would be easy with anyone and then learned the hard way. I see that all the time. I actually have had quite a few lenders text me on this with more stories so I am going to start a series.
Hi Mrs. Beeston, Me and my husband are a senior couple looking to purchase a condo or home in Washington state, we both are retired , our scores are in the six hundreds. We want to use his VA loan to purchase our finally home. What should we do to raise our credit scores to be eligible for more loan companies. Truly appreciate your putting these learning bites on here, I was about to give up! Thank you for all you are doing to help others like us . Blessings
My husband and I are looking into potentially buying a house later this year/next but our job situation is a little weird - should we actually start talking to lenders now & get the process started (pre approval?) or wait until it settles and just save for now?
It's music to my ears because I know what's gonna happen before she says it Jen you're the best
Something the realtor and the lender can do is educate the clients beforehand with this situation too. I know you guys do that to some extent, but this sounds like an anecdote that would good to share with future clients before they even find a house
When should I be done shopping my rate? I’m 3 days into contract and yet I feel I’m being pressured by both lenders and my realtor to hurry up and make a decision, yet neither have gave me a 100% locked in rate. Not sure what to do.
Get them to lock and pick a lender. Time is ticking away and I would be pressuring you too but I would have locked
I am lender to going to the same thing losing loans over crazy rates that not even realistic and they are not closing them like they say. Very true.
We need to protect people from these types of lenders agreed
Where we check reviews from the lenders?
Google, Yelp Zillow
I had a loan I had to adverse TWICE because borrower did this to me. I was furious
Yeah it’s never fun
Is it true after you get a pre approval you can shop around that rate as many times as you want without it dinging your credit
In theory, you’re supposed to be able to shop multiple lenders with a 30 to 45 day window. Keep in mind until you’re ready to lock your rate, It’s all nonsense and non binding anyways. Research the lenders and actually look for an expert instead of just chasing a rate that you may or may not get.
@@JenniferBeestonok thanks. I got a pre approval from my bank today the rate was 6.6 percent but I’m not comfortable with the closing cost or the monthly payment so I’m going to shop around.
God they need to teach this type of stuff in high school
Thank you. I have a question about 7/1 arm and 30 year fixed loan products. Do we pay the principal at the same rate for both loan products. I just want to make sure I am not falling into interest trap by choosing 7/1.
Depends on the product. Some are interest only and some are not. Make sure you discuss with your lender
@@JenniferBeeston Thank you for responding back. I have talked with my lender about that and there in no interest trap, after doing math I found I will be paying more towards principal rather interest for the first 60 months/5 years in 5/1 arm compared to 5 year’s payments in 30 years conventional. So basically I am building little bit more equity compared to conventional for the first 5 years. Yes, there is risk involved in 5/1 arm after 5 years and I figured out possible solutions to subdue it.
So many times, people truly believe what they've been told, and unfortunately don't have the knowledge to ask important questions. We had a saying in the military, and it stands today as a testament of those that did not prepare corectly: "Lack of preparedness on YOUR part does not dictate an emergency on MY part. Thank heavens they got help from a very caring professional, or they could have been out of luck. Love your channel!
Thank you Robert and that is a good motto to live by
This is good advice. I'm so scared to get and bad contract.
Did the credit bureaus sell her contact info to the call centers?
Yes they always do
What Mortgage company do you work for?
Guaranteed rate
The other lender…….”oh well…rocket mortgage xxxx how may I help you?”
I have very little symapthy for that buyer. They got greedy with perceived savings and gave no consideration to the extra effort others have to make. The "Stupid Tax" strikes again.
You said you are not good at construction loans, Are construction loans different from New hom builds by a developer building and entire neighborhood and the buyer picking one of the available models?
Great question as I agree it is confusing. We do new home Communities all the time. We just don’t do if you are buying land and then Hiring a builder and paying the builder before the house is complete.
Any recommendations for cash out home refi?
happy to discuss 707-478-0637
@@JenniferBeeston I will contact you
Those appraisals aren't cheap lol
How far out can you lock in a new construction situation (not custom)?
up to 365 days
Okay I get confused with the shopping around for rates. Do we shop around before getting preapproved or after? Do we have to get preapproved with every lender we shop for a rate with? When do you “locked” in?
It’s really hard to shop right now with the volatility of the market. Right now most lenders are not locking till you are in contract. Check out my video today as I cover a few of your questions.
my creidt left me with basically no option but homepoint ~630 credit score with collections and bunch of cc defaults in past 7 yrs just happy to be getting a house my rate is 4.375% closing 4/4
I’m dealing with a broker right now that’s hiding part of the fee to buy down the rate in their “origination fee” and “underwriting fee”. After talking to other lenders, it’s an overall good deal but still irks me that they would do that. Feels like I’m being lied to. And this is someone referred to me from a friend
If it’s a good deal overall that is key 🔑
Great advice! You need things in writing. I never take someone’s “word for it”. Buyers need to do their due diligence and read things, compare LEs, ask questions, test the lender’s competence, etc. Home loans are financial products, and if you don’t know what you’re doing you should pump the breaks on making such a big purchase in the first place.
Can you share contact info for your sister? 😊
Sarah Kohut 949-300-4246
Would your sister have told the client the consequences by canceling 10 days before closing? It just seems odd that the clients are that uneducated.
You can. I have tried several times to educate but sometimes the person controlling the narrative, I this case the other lender, has them convinced otherwise.
She warned them it was a risk but the other lender had sold them a dream
Can you do a blog on is it a good time to buy now? Or wait? It’s very frustrating for my situation, I have good credit and a decent down payment yet everything seems uneasy with the feds raising the rates.
Start shopping now and take your time to find what you like. But yes that is a great video topic and I will do:) thank you for the suggestion!
will your loan officer reach out to you if you no longer qualify for the loan due to the rates going up? Also, what if the builder is giving you money towards closing but you found a better rate with someone else, does that mean now you have to put all closing down since now you are not going with that builder? unless of course the new lender offers some closing if at all..thanks in advance..do you specialize in VA loans?
Yes I specialize in VA. What the builder credit will do with closing costs credits depends on the builder and what your contract says. Some lenders reach out and some do not. We do our best. Jen A on my team calls people constantly gets voicemails and ghosted when we are trying to warn people. Best to check in with your lender every few weeks. Stay in front on them
This was a great story and I really like your explanations, but I am still confused about one concept you breeze over at 4:26 min mark: Can you explain what it means for the Lender to say there is a "point charge" to the rate on a rate that is higher than they originally locked with the client? Does that just mean that in order to get back to... say 6% instead of 6.5% interest, the client had a point charge to pay for too? In other words, there was the option for ZERO points charged but the client would have ended up with a rate like 6.5%.
Hello. We are going to be trying to buy a home in the next 6 months. It's not an ideal time with rates etc but it's what we want and it's time for us. With that being said and the rates being all over the place day to day, and going up. Would you say it's best to find a lender with decent fees and decent rate compared to others and close and then in years to come if rates go down look into refinancing? I think shopping and shopping and buying lots of points is an option but would like your opinion on that? Also about about a 7 or 10 arm? Rates seem to be a bit lower but it's a gamble with rates. Are they going to go back up to where they were 15 years ago and stay? I'm leaning towards 30 year VA and shop around some. Get in contract, locked, closed go about our lives and in a few years if rates are lower look into refinancing. I appreciate any insite. Also will be reaching out to you in the coming months for a quote!!
How do you find Lender reviews?
Google reviews, Zillow and yelp. Make sure you check the individual loan officer you are working with. NOT just the company
Have you worked with someone the that has dealt with or is dealing with a bankruptcy?
I'm100% TTD disability and on SSDI, my bankruptcy discharged date was 5/26/20, I did find a piece of paper that says it's 5/20/20 so I'm not 100% sure which one it is. I need to contact the bankruptcy lawyer that I had to find out for sure.
I know I can't do anything before that 2 year mark, but my lease is up here in Georgia on July 31st, and I need to find a house and be able to close and move in by August 1st. Will 2 months be enough time to go through the whole process and be able to get into a house by August 1st? Credit Karma says my score is (641-643) as of today.
I would like to move to Florida, but not 100% on that either, have looked at homes online in Florida, Georgia, South Carolina and North Carolina. I really want to be close to the coast as possible.
Thank you for your help.
We see BK’S every day. In theory it should be enough time. Give me a call and I can walk you through it. If you get My vm leave a message and just mention I said jen b to call back as otherwise my team calls you back as quickly as possible and the above is a touch complicated. 707-478-0637
Something that your sister should focus on is her relationship building. How much trust does her clients have in her to leave for a very minimal change in interest rate and payment that late in the process? How much confidence did the realtor have involved have in the lender? Great information and content!
Hi Raymond,
This happens to all lenders including myself. If someone is only focused on rate and “saving money” they often disregard everyone’s opinions. My guess is it was so easy to get approved with my sister the client assumed it would be easy with anyone and then learned the hard way. I see that all the time. I actually have had quite a few lenders text me on this with more stories so I am going to start a series.
Hi Mrs. Beeston, Me and my husband are a senior couple looking to purchase a condo or home in Washington state, we both are retired , our scores are in the six hundreds. We want to use his VA loan to purchase our finally home. What should we do to raise our credit scores to be eligible for more loan companies. Truly appreciate your putting these learning bites on here, I was about to give up! Thank you for all you are doing to help others like us . Blessings
we can easily do a VA loan with credit in the 600's:) Give me a call I am happy to discuss 707-478-0637
My husband and I are looking into potentially buying a house later this year/next but our job situation is a little weird - should we actually start talking to lenders now & get the process started (pre approval?) or wait until it settles and just save for now?
Have a convo with a lender but don’t pull credit etc yet. I am at 707-478-0637. Happy to discuss!
What about heloc
in what context?
Couldn't your sister just tell the client in the first place since you said she knew?
When we warn people they are making a mistake they rarely listen. It always comes off as sour grapes.
I would've told that client that I'm no longer interested in doing business with you. bye.
I feel ya as it hurts when they leave but it’s good karma to save the day. At least that’s how I look at it.