MY first loan officer failed to tell me about the interest rate buy down. Didn't know about it until a different lender explained it to me. Kind of called the 1st lender out on it and they offered a match with the second lender. I told the first lender goodbye and went with the lender that was more transparent.
I'm very transparent with my clients, I think the more we educated them on what’s included and how it works the better we are setting them up for success with their loan.
Actual conversation: “Hey loan officer, is there any to get a lower interest rate?” “No, we’re too deep in the process, this the best loan for you” “What about buying points?” “Oh yeah….. blah blah blah” *trust broken” If I hadn’t seen TikTok about buying points I would have never known, I was the one that had to bring it up. Who knows what other possibly helpful information he kept from us
Thanks a huge million for sharing this..I haven't owned a home since 05' and lost it due to mortgage fraud. This time around I want to avoid any and all problems through my research. You're doing the right thing by sharing this info. You gained a new subscriber..!
We just left a lender that was charging us higher fees and left out the other closing cost fees then proceeded to bully us because we went with a lender that was better and more upfront with their fees in section A. They tried to win us back by saying they can remove third party fees from the closing coat which I know they can’t do that.
The only break down fees the Loan Agent provided to me was insurance and flood insurance. Only because I asked for a break down and continued to say he don't have a break down. I asked for my pre approval letter, could not provide that either. Off to find another Agent. Too many red flags. Anyone know of a 203k loan agent please feel free to reply. Thanks!
The cheapest loan officer isn’t always the best! If you have an LO giving FULL transparency on what they cost and what their rates are, that lender will go much farther than an LO looking to make a quick buck. Cheapest doesn’t always mean best or honest. I would rather work with a lender with a 3.65% and know what I’m buying versus a 3.25% and be taken advantage of.
It is a legal requirement to disclose these on the final closing disclosure. Being that most closing costs are 3rd party costs chosen by the seller it’s impossible to know upfront
We’re closing soon! Appraisal came in $10K over offer, didn’t have to sell my blood or soul. Ive been watching Javier and you for two years. Thanks for all the helpful info!
The next biggest trick I deal with - discount points! As a lender I notice way to many borrowers not understanding this and come to me saying they have a better rate, send me the loan estimate only for me to point out the quote is showing them paying am additional amount of money to buy the rate down to the quoted rate
We switched lenders because the one we went with explained to us that the first one added $5,000 to buy down our rate some. He was able to get us the same rate with much less buy down and explained to us that we would have had that hidden fee upfront at closing.
I'm sorry to hear about your experience, but I'm glad you found a better option! Always make sure to compare offers and ask for a quote to catch any hidden fees upfront.
The only fees that have to do with the lender is in letter a of page two on the loan estimate. Everything else is pretty much within the borrower's control. If you're buying a house either the buyer or the seller picks the title company, and the title company will be happy to give you their fees before you apply for the loan. The entire right side of page two in the loan estimate is not fees, it's taxes, interest, insurance and the county filing fee, all of which have nothing to do with the lender. The appraisal fee is about the same regardless of lender, but sometimes you get a tight appraisal market where there are no appraisers who will take the bid and in order to get an appraiser you have to pay him whatever they ask. But pending all these fees on lenders or loan officers is not fair. We didn't create the system. This is a government create a document that everybody uses. And it's hard to get borrowers to understand that all of the fees on this page with the exception of letter a are completely under their control and they spend incredible effort getting various lenders to compete based on these fees. That's why you get some lenders that low ball the fees if they can. Because they know that it will ultimately depend on the buyer and seller picking the title company. When you're buying a house just ask how much is the appraisal and how much is your processing, underwriting, origination and are there any points. Everything else doesn't matter because it's exactly the same no matter which lender you use.
1 thing my loan officer did, besides giving estimates on 3rd party costs, was that I had to take an online class they require that explains all the costs on the loan estimate (among other things). Even though I did my research as well as took the course, I did something you instruct. Shop around, get all the information, and to get the full picture, STAY IN BUDGET!!!!!!
I have a friend who noticed at the closing table that the lender did not include the amount of interest rate points she bought down, instead he pocketed the money. She refused to signed the closing docs, the lender had to go home & fix the documents. Crazy!
That is such a display of good will... promise you man, this will build such credibility...that you can't buy with money. But with honesty and once you have it.. No marketing budget will beat that... Gracias hermano!!!
Thank you for ALL your help and transparency! You are a blessing to us who are wanting to take that leap of faith. Keep sharing! I’m a fan /supporter for life.
As a licensed LO in WA State, I see this all the time and it's frustrating! When our competition is essentially lying to customers, and then by closing it's too late for them to switch.
@@WinTheHouseYouLove I've seen them just leaving off section F and G fees completely. Can you imagine at closing getting hit with a $4,500 whoopsie? I feel bad for first time homebuyers especially!
@@CurranLongI feel that there are far too many LOs out there who wing it when it comes to calculating cash to close. I had a realtor with 35 years experience tell me that it’s his number one gripe.
I ve been bidding since March and I finally found something yesterday. Make sure you put on realtor to show you listing as soon as they come out. you will see the listings with in an 1 hour. That is how I found my condo.
At what stage I expect them to give me the loan quote with your suggested breakdowns? At the initial pre-approval stage, qualified pre-approval stage, before going to contract? What should I do if I still don't get the full picture from them? At what stage I should shop lenders?
Yes, some of these lenders are unethical and need to be reported. They messed up a lot of my deals in the past as a Realtor because they're freaking liars!!!
Yeah Veterans United severely under quotes the property taxes and gives higher than market rates. Make sure to shop around for a lender for sure and understand all the fees on the loan estimate.
I so appreciate your videos. We were moving right along 'til we had to switch into a FHA 203k. The new loan teams quote make no sense and now our loan officer isn't responding, but keeps pushing us to sign more documents and pay fees to keep the process going. Finding your channel gives me hope there are honest people in the business still out there. 😅
I'm sorry it happened to you. If you need to ask for more information about mortgages, loans, or need assistance... you can always go to winthehouseyoulove.com or watch my live stream on Wednesday.
@@WinTheHouseYouLove thank you! We called our realtor and she brought in another lender she works with regularly and trusts, who is now overlooking the entire process as another set of eyes. We got a new loan estimate within 24hrs and everything is back on track now. The new estimate looks as it should with no random 22k in additional random charges. (We were looking at 46k in closing costs originally on a 250k home.) Thank you SO SO much for your channel. It's made knowing and being confident in the process significantly easier. 😊👌
Had this happen to me. She lied about their closing cost fees and tried to get me to get a loan for the amount I didn't have at the very end of the process. We told her NO and went to another lender. Wasted 3 months.
Our new builds preffered lender in AZ mistakenly quoted us by calculating 20% vs 20k down.we were so excited with the quote we gave earnest money the next day and stopped looking elsewhere....resulted in 7 months of checking everything single thing this loan officer told me or gave me! Then kept pushing us into a fha loan and said they could refinance me into a conventional loan later... most exhausting time of my life. I ended up going with a conventional!
Woah! For this kind of life decision, we really need to slow things down and make sure to research well. In your case, at least you were able to get home no matter what loan it is. Thanks for watching!
Also, to lower the cost ask your realtor to present the offer with all costs paid by the seller. That way you will only have origination + appraisal. If someone takes a quote from the loan officer, BEFORE going into the contract, they don't know who pays what. After 2010, no one can manipulate the cost numbers. Whatever LE states, that is it. Also to cover all costs, have your LO raise the rates and get the discount. That way you are NOT paying a dime in cost. Good video
Mortgage processor here - if a homebuyer is looking for a prequalification letter to show a seller, it’s not an official application which requires the disclosure of a Loan Estimate, which quotes the actual closing costs and estimates prepaid and reserves for closing (all on top of the down payment). My advice would be to still shop around (and be very very quick about it) for the best rate and closing costs after you’ve put in an offer with the original prequal. If you’re a strong borrower, you can easily switch lenders if the original prequal lender isn’t best for you.
I am closing on my first home in five days, and it has been a whirlwind the past three weeks! I have been planning on using down payment, assistance grants, however, the amount was variable so it was just solidified today… With total closing costs $20,000, taking away $8000 in seller credits, $8000 in down payment assistance, and $1300 in lender credit I will be buying my home for less than 3 grand. I am a little flabbergasted right now, but cannot wait to sign the papers and get my keys on Tuesday!
Thank you for all this information. We’re under contract and we’re dealing with two lenders who are being very cagey about giving us Loan Estimates. I’ve sent them all the info outlined in the CFPB site and insisted that we want a Loan Estimate. Waiting to hear back. Also going to ask around to other lenders. Hoping they’re not all like this.
Both lenders said they will send Loan Estimates. They said they never send Loan Estimates without also sending Loan Disclosures. I appreciate that the lenders want to look over the sales contract first for any potential issues that could scrap the deal, but I was so surprised how reluctant they were to send Loan Estimates. It makes it very hard to compare lenders, especially if your closing date is a little more than 30 days out. I’m wondering what we should have done beforehand to make this part easier, because we feel really rushed.
@@tarawalton6778 When we sent them official requests they did send Loan Estimates. The person we were originally working with had a higher interest rate than the other so we ended up switching lenders. It was stressful for a week or so, but we’re so happy with the rate we got.
Did my refinance 2 times, bought my house september and able to get rid of pmi asap.. I never pay for any closing cost.. If you know what your doing, u will not be cheated
The lender was trying to rip me off. Over 22k to close. Was trying to charge 16k in fees and 10k down but added 5k back to the mortgage. Meaning only half of the down payment was even applied to the loan. He had loan orig fees, processing fee and underwriting totaling at $10k. Two weeks to close and I said not going with them. Supposed to close in a week so not sure if It will
Oh no! Is it possible it was an FHA loan and the up front mortgage insurance was added to the loan? I'd be happy to take a look if you'd like. Feel free to email me kyle@winthehouseyoulove.com
After watching this I'm very thankful for my lender! The actual closing costs at the table is a couple thousand less then my original estimate came in at.
Wow several thousand less is a huge difference! Do you remember which parts the lender overestimated in the original loan estimated compared to the closing disclosure?
My lender sent me a loan estimate but it didn’t include the earnest money or the sellers contribution to the deal. She keeps saying that it’ll be updated “later on in the process”. It’s been 21 days & the appraisal hasn’t been completed. I’m backing out of the deal.
Agree with getting all costs up front. I was a mortgage lender for 6 years following 35 years in banking. The most important thing is to find a loan officer you can trust. He or she should WANT you to have all the costs up front along with the full monthly payment because you will need to qualify based on those and the loan officer loses a paycheck if you end up not qualifying. Choose a loan officer like you'd choose an electrician or any other professional - by referral from a satisfied customer - best if from someone you know personally. These days a loan officer cannot legally quote just a rate without quoting the A.P.R. as well. It's very easy to estimate costs and there are templates for this. I used an Excel template that proved to be very accurate. Lenders usually want to OVERestimate costs because they know a good surprise is better than a bad one, especially when some is being allowed to spend less than they expected!
Hey Bruce! Thanks for sharing your experience as a mortgage lender. I completely agree with you about the importance of finding a loan officer you can trust. Having all the costs up front, along with the full monthly payment, is crucial for qualifying and avoiding surprises later on. Referrals from satisfied customers are a great way to find a reliable loan officer, just like you would with any other professional.
We just closed a house last night. Our lender never transpsyto us since day one. They quoted us lower than what we paid when were in the title company. From $35K plus to $40K plus already and none of them( my agent and my lender) showed up during my closing. So upset with them! We found out that my agent and the lender officer are friends. That’s why our agent told us to switched from our previous lender and give us a new lender.
Hi ,I am honestly going through this right now, I am in the middle of my contract in which I am just a stone throw away from closing.Then he surprised me with a new coat of 20k more.At this point I wish I could switch him.
In the process of a new build in PA. Loan process is a nightmare. Difficult to obtain 3 loan estimates. In fact while watching your video, one potential lender (you alluded to them ) seems a little sketchy to me after doing some on line research. I love this channel. Do you do loans in PA?
I’m slated to close on Monday. My lender is a wolf in sheep's clothing. Promised my closing cost would me no more than 23k and hid the numbers all the way to the end. Now my cash to close is 29k
I used a mortgage calculator from a prospective lender and I got a rundown of all the costs, even prepaid reserves. 1. Is this a good sign of an honest bank to work with? 2. Will these numbers be close to what I’ll be looking at at the closing table? Thank you
My loan is only 363750 but my closing cost is 24k something. And then there are more ads on that adds up to close to 50k. I have to be getting rip off somewhere
It sounds overwhelming, but closing costs can include various fees like origination fees, taxes, and insurance. To ensure you're getting a fair deal, compare your current quote with what we can offer at www.winthehouseyoulove.com/compare.
Thanks for the info! The information was really helpful. Quick question for you. If a lender doesn't list an underwriting fee in Section A, are they allowed to add it later after a loan package estimate was already provided?
They can, but you are not allowed to pay for it. Section A costs are under zero tolerance meaning any overage not approved by a valid Change of Circumstance must be covered by the lender
Yes they are jacking up your interest rate to cover the closing costs. Whenever any lender offers no closing cost refinance ask what the rate would be if you paid closing costs. The other trick is they say no closing costs but they mean no out of pocket closing costs so they increase your loan amount to cover closing costs. Overall if it sounds to good to be true it is
So my questions is how do we shop with lenders and find out which is right for us without having different lenders run our credit to give us an accurate interest rate? Or is this something that is inevitable?
It is inevitable but you are allowed to run multiple apps within a 30-60 days counting only as one inquiry. Doesn’t mean it won’t hurt your credit score a little bit but it’s nominal.
On a 525k VA loan. Originally edtimate wad on 525k Once we wrapped the VA Funding Fee on the loan now we are being qouted 536k with a higher loan amount and higher monthly payment. In addition, the 1/1 buy down amount increased ad well. The section A went up as well (500.00) extra on underwriting fee from the estimate. Does this sound normal?
I see so much bait and switch. I’m a rescue lender so many times because of these issues. I am very transparent and up front with people. Treat people with the platinum rule and you will never go wrong.
Can anyone identify which Veteran lender he’s referring to has been shady? Home buying is hard enough for normal people, but even more daunting for military members and veterans.
You can! However, since you always want to know what points may or may not be charged, I’d recommend waiting to see it on the full quote since almost every lender has the same underwriting fee. Thanks for watching!
if you're buying a house, and don't know you're going to have closing costs.....you probably shouldn't be buying a house. not trying to be rude!!! just saying --- you're going in BLIND
I'm a veteran- 80 percent disability. Guaranteed Rate waives their lender fee. How is that? Will they recoup the cost somewhere else? I am shopping around. Thanks!
I’m rechecking my closing costs from 2 years ago. My original fees go as such: 2.514% of Loan Amount (Points) = $12,113 Underwriting Fee = $1,055 Did I get screwed or something?
I signed my loan documents with the cash to close being $200 10 days before they send me another document saying when i chose to lock in the cash to close was actually $5000. I'm not buying it..
Taxes have doubled and tripled in many areas, insurance as well. There's both planned Obsolescence and accidental Obsolescence... Due to ignorance, if you don't know, you don't know.
Should i not compare escrow and prepaids across different lenders when shopping loans? For example do different lenders have different prepaid or escrow requirements which you may consider when deciding which lender provides better overall value?
Can you change from lender to going to a bank when your threw a offer on a home and got approved but also got approved from a bank and the lender has a higher interest but still haven't signed the final closing coast
Thank you very much for your video! I have one question. I’m still shopping for mortgage, and one of the loan officers I contacted is asking for a deal sheet. I’m still not sure whether I will sign up with that bank yet, and want to shop little more. I’m just wondering what they are going to do with the deal sheet if i provide it to them. Or should I not yet?
As someone 16 years in the business the algorithm sent this video to me. I feel you got it a little backwards. What I feel is shady is when I get an competitors LE with severely underestimated escrow collection (1month taxes and 1 month insurance…then 1 day interest lol) that’s shady. Really on a purchase the 800 fees SHOULD be what the consumer is focused on because the rest an unscrupulous lender can make look more attractive. I’m talking LE’s specifically.
Ask if you can drop the escrow by seeing how much of a down payment you need to do this, them you can take the Responsibility of paying the Property taxes, HOA, and House Insurance yourself? Did I leave anything else out?
Can you ask for a loan estimate of a previous client with private information removed? i’m thinking if the loan officer can provide a estimate within that year for someone of the similar housing cost area and credit score that people could have an even better idea of the real cost associated loan .
I disagree on only focusing on section A fees. Some lenders will lump all of their costs in section A, some tend to break down some of those costs in section B to make section A look better. Section B costs can increase up to 10% so this can make a difference.
Thank for this information. So when shopping for a loan agent asking thier costs seems practical because the rest is beyond their control. Is that fair to say.
Just found out brokerage fee is not always on a loan estimate, it was on my closing disclosure. I was upset about this, can anyone explain how this was on the closing disclosure and not on a loan estimate?
It 100% should have been on the Loan Estimate. Please email me your Loan Estimate and Closing Disclosure and I can review and see if I can help kyle@winthehouseyoulove.com
my loan offer said it shouldnt be more than 7000 while we already have a pending contract. when it finally finished, it was whopping 16k. I'm like holy fuck
Sounds like it's too much trickery going on with these greedy loan officers trying to make a year salary on one deal! If I was quoted something and the actual amount was double the quote, I would run fast from that person 🏃🏃🏃🏃🏃
I was waiting for this but luckily closed with only around $700 total for all of the closing costs. Pretty surprised honestly how low it ended up being.
Damn boy that title scandalous.
Telling it like it is 💅
My two favorite mortgage youtubers!
He's keeping real, and for that we respect him.
@@xavierblackburn4650 Mine too...lol. They're like "work spouses" and don't give a f*ck! I love it!😁
Thank you 💯
MY first loan officer failed to tell me about the interest rate buy down. Didn't know about it until a different lender explained it to me. Kind of called the 1st lender out on it and they offered a match with the second lender. I told the first lender goodbye and went with the lender that was more transparent.
@@larrycruz-j8x do pay for mortgage applications
I'm very transparent with my clients, I think the more we educated them on what’s included and how it works the better we are setting them up for success with their loan.
Quick question do you charge for delivery fee? I think it’s when you sell the mortgage loan but the bank charges the buyer that fee?
@@fivestar000 we don’t sell our mortgages, we keep them in-house and service them ourselves.
Actual conversation:
“Hey loan officer, is there any to get a lower interest rate?”
“No, we’re too deep in the process, this the best loan for you”
“What about buying points?”
“Oh yeah….. blah blah blah”
*trust broken”
If I hadn’t seen TikTok about buying points I would have never known, I was the one that had to bring it up. Who knows what other possibly helpful information he kept from us
Thanks a huge million for sharing this..I haven't owned a home since 05' and lost it due to mortgage fraud. This time around I want to avoid any and all problems through my research. You're doing the right thing by sharing this info. You gained a new subscriber..!
Thank you so much for watching!! :)
Omg buying a house is a real nightmare. , no way
It's not always easy
It’s generational wealth gotta start one way. Or better yet start a business but definitely have to build that future wealth
Well...not really a nightmare. It's a process and it's just 1 time and with a good loan officer who communicates and educates- it makes it worth it😊
We just left a lender that was charging us higher fees and left out the other closing cost fees then proceeded to bully us because we went with a lender that was better and more upfront with their fees in section A. They tried to win us back by saying they can remove third party fees from the closing coat which I know they can’t do that.
OMG, the same thing just happened to me today, that is why I am on this site. The bullying is no joke. They better not do anything with my PII
Seller credits
@cyndigreenwood3272 wait!! We are getting seller credits? What's the issue with those?
The only break down fees the Loan Agent provided to me was insurance and flood insurance. Only because I asked for a break down and continued to say he don't have a break down. I asked for my pre approval letter, could not provide that either. Off to find another Agent. Too many red flags. Anyone know of a 203k loan agent please feel free to reply. Thanks!
The consumer laws protect you from third-party fees, that's why they were considering removing those extra fees.
The cheapest loan officer isn’t always the best! If you have an LO giving FULL transparency on what they cost and what their rates are, that lender will go much farther than an LO looking to make a quick buck. Cheapest doesn’t always mean best or honest. I would rather work with a lender with a 3.65% and know what I’m buying versus a 3.25% and be taken advantage of.
100%. The right loan strategy is better than a wrong one even if it has a lower rate
The good news is you can probably find a great lender that is also competitive on price. Kyle will connect you!
Why not have both? Low rate and good service. There are plenty out there.
how is it not a legal requirement to make the borrower aware of these cost? are they not essential to the home purchase?
It is a legal requirement to disclose these on the final closing disclosure. Being that most closing costs are 3rd party costs chosen by the seller it’s impossible to know upfront
I always break down all costs to my clients before moving forward. It is easier that way. I totally agree with you
Thanks for watching!
We’re closing soon! Appraisal came in $10K over offer, didn’t have to sell my blood or soul. Ive been watching Javier and you for two years. Thanks for all the helpful info!
Thank you so much for watching!! :)
Did you get to close?
@@harlemkid144 yes! Smooth and quick process thanks to all the info.
@@LazyLadyy congratulations! I'm still searching its tough in fl market
@@LazyLadyy you had to pay the 10k out of pocket right?
The next biggest trick I deal with - discount points! As a lender I notice way to many borrowers not understanding this and come to me saying they have a better rate, send me the loan estimate only for me to point out the quote is showing them paying am additional amount of money to buy the rate down to the quoted rate
Yes!! I'm working on a tool that can help people see that more clearly!
Has the tool been developed yet?
Do you work with people in Texas?
@@jamesbonacci3148 can you help me review a CD I feel I’m being taking advantage of me and my wife, we close on August 9
Is this tool available?? 😃
We switched lenders because the one we went with explained to us that the first one added $5,000 to buy down our rate some. He was able to get us the same rate with much less buy down and explained to us that we would have had that hidden fee upfront at closing.
I'm sorry to hear about your experience, but I'm glad you found a better option! Always make sure to compare offers and ask for a quote to catch any hidden fees upfront.
The only fees that have to do with the lender is in letter a of page two on the loan estimate. Everything else is pretty much within the borrower's control. If you're buying a house either the buyer or the seller picks the title company, and the title company will be happy to give you their fees before you apply for the loan. The entire right side of page two in the loan estimate is not fees, it's taxes, interest, insurance and the county filing fee, all of which have nothing to do with the lender. The appraisal fee is about the same regardless of lender, but sometimes you get a tight appraisal market where there are no appraisers who will take the bid and in order to get an appraiser you have to pay him whatever they ask. But pending all these fees on lenders or loan officers is not fair. We didn't create the system. This is a government create a document that everybody uses. And it's hard to get borrowers to understand that all of the fees on this page with the exception of letter a are completely under their control and they spend incredible effort getting various lenders to compete based on these fees. That's why you get some lenders that low ball the fees if they can. Because they know that it will ultimately depend on the buyer and seller picking the title company.
When you're buying a house just ask how much is the appraisal and how much is your processing, underwriting, origination and are there any points. Everything else doesn't matter because it's exactly the same no matter which lender you use.
Thank you for MUCH needed clarity on this.
Great video! As a loan officer at my company we strive to be transparent as possible with our clients and disclose all those third party fees!
Awesome!
1 thing my loan officer did, besides giving estimates on 3rd party costs, was that I had to take an online class they require that explains all the costs on the loan estimate (among other things). Even though I did my research as well as took the course, I did something you instruct. Shop around, get all the information, and to get the full picture, STAY IN BUDGET!!!!!!
Love it, great suggestions!!
I have a friend who noticed at the closing table that the lender did not include the amount of interest rate points she bought down, instead he pocketed the money. She refused to signed the closing docs, the lender had to go home & fix the documents. Crazy!
That is such a display of good will... promise you man, this will build such credibility...that you can't buy with money. But with honesty and once you have it..
No marketing budget will beat that... Gracias hermano!!!
Wow! Thank you so much!
I feel empowered so when we start , we will know things they think we don’t.
Cheers to transparency and showing buyers the big picture by telling the full story.
Thanks for the support! It's super important for buyers to have all the info they need.
Bait and switch! So many of them do it. I walked away from a deal at the closing table with Veteran’s United for hidden costs.
Oh wow. I was considering them today. I’ll see what they offer once they get my contract tomorrow
Did have pay for mortgage application
Thank you for ALL your help and transparency! You are a blessing to us who are wanting to take that leap of faith. Keep sharing! I’m a fan /supporter for life.
As a licensed LO in WA State, I see this all the time and it's frustrating! When our competition is essentially lying to customers, and then by closing it's too late for them to switch.
It's the worst!
@@WinTheHouseYouLove I've seen them just leaving off section F and G fees completely. Can you imagine at closing getting hit with a $4,500 whoopsie? I feel bad for first time homebuyers especially!
@@CurranLong hey you work from Vancouver Washington?
@@vorutouzamaki2635 I do!
@@CurranLongI feel that there are far too many LOs out there who wing it when it comes to calculating cash to close. I had a realtor with 35 years experience tell me that it’s his number one gripe.
✍️✍️ literally taking notes. Now I just need a house keep getting out bid
Same
You can do it! Best of luck!
I ve been bidding since March and I finally found something yesterday. Make sure you put on realtor to show you listing as soon as they come out. you will see the listings with in an 1 hour. That is how I found my condo.
At what stage I expect them to give me the loan quote with your suggested breakdowns? At the initial pre-approval stage, qualified pre-approval stage, before going to contract?
What should I do if I still don't get the full picture from them? At what stage I should shop lenders?
That’s a good question. I hope gets back to you on this.
bro, automatic subscription - Im grateful for people like you. I appreciate you - definitely using these tips
I watched this video with my loan estimate documents in hand. I think I'm okay👍 Thank you!
Glad it was helpful!
Yes, some of these lenders are unethical and need to be reported. They messed up a lot of my deals in the past as a Realtor because they're freaking liars!!!
This just happened to me and I had no idea what happened- so frustrating! Thank you for explaining this.
Yeah Veterans United severely under quotes the property taxes and gives higher than market rates. Make sure to shop around for a lender for sure and understand all the fees on the loan estimate.
I so appreciate your videos. We were moving right along 'til we had to switch into a FHA 203k. The new loan teams quote make no sense and now our loan officer isn't responding, but keeps pushing us to sign more documents and pay fees to keep the process going. Finding your channel gives me hope there are honest people in the business still out there. 😅
I'm sorry it happened to you. If you need to ask for more information about mortgages, loans, or need assistance... you can always go to winthehouseyoulove.com or watch my live stream on Wednesday.
@@WinTheHouseYouLove thank you! We called our realtor and she brought in another lender she works with regularly and trusts, who is now overlooking the entire process as another set of eyes. We got a new loan estimate within 24hrs and everything is back on track now. The new estimate looks as it should with no random 22k in additional random charges. (We were looking at 46k in closing costs originally on a 250k home.) Thank you SO SO much for your channel. It's made knowing and being confident in the process significantly easier. 😊👌
CONGRATULATIONS!🤗Keep us posted.
Update please
Not only did my lender get bought out just before close, not all costs were disclosed and my payment went up $300 from what I was told!
Had this happen to me. She lied about their closing cost fees and tried to get me to get a loan for the amount I didn't have at the very end of the process. We told her NO and went to another lender. Wasted 3 months.
"Closing costs are $4,999." How? Closing costs vary depending on the price of the home, the interest rate, taxes etc.
Correct
Our new builds preffered lender in AZ mistakenly quoted us by calculating 20% vs 20k down.we were so excited with the quote we gave earnest money the next day and stopped looking elsewhere....resulted in 7 months of checking everything single thing this loan officer told me or gave me! Then kept pushing us into a fha loan and said they could refinance me into a conventional loan later... most exhausting time of my life. I ended up going with a conventional!
Woah! For this kind of life decision, we really need to slow things down and make sure to research well. In your case, at least you were able to get home no matter what loan it is. Thanks for watching!
Also, to lower the cost ask your realtor to present the offer with all costs paid by the seller. That way you will only have origination + appraisal. If someone takes a quote from the loan officer, BEFORE going into the contract, they don't know who pays what. After 2010, no one can manipulate the cost numbers. Whatever LE states, that is it. Also to cover all costs, have your LO raise the rates and get the discount. That way you are NOT paying a dime in cost. Good video
Mortgage processor here - if a homebuyer is looking for a prequalification letter to show a seller, it’s not an official application which requires the disclosure of a Loan Estimate, which quotes the actual closing costs and estimates prepaid and reserves for closing (all on top of the down payment). My advice would be to still shop around (and be very very quick about it) for the best rate and closing costs after you’ve put in an offer with the original prequal. If you’re a strong borrower, you can easily switch lenders if the original prequal lender isn’t best for you.
What if they find out and turns out they were the best out of the others you shopped but don’t want to work with you anymore?
I am closing on my first home in five days, and it has been a whirlwind the past three weeks! I have been planning on using down payment, assistance grants, however, the amount was variable so it was just solidified today… With total closing costs $20,000, taking away $8000 in seller credits, $8000 in down payment assistance, and $1300 in lender credit I will be buying my home for less than 3 grand. I am a little flabbergasted right now, but cannot wait to sign the papers and get my keys on Tuesday!
Congrats!!!
So you basically put nothing down,,how much is mortgage Goin to be??
@@tucoramirez9729 3% down, total mortgage loan is $270k making the payment $2200
What mortgage assistance did you use??
Thank you for all this information. We’re under contract and we’re dealing with two lenders who are being very cagey about giving us Loan Estimates. I’ve sent them all the info outlined in the CFPB site and insisted that we want a Loan Estimate. Waiting to hear back. Also going to ask around to other lenders. Hoping they’re not all like this.
Wow! Best of luck!
Both lenders said they will send Loan Estimates. They said they never send Loan Estimates without also sending Loan Disclosures. I appreciate that the lenders want to look over the sales contract first for any potential issues that could scrap the deal, but I was so surprised how reluctant they were to send Loan Estimates. It makes it very hard to compare lenders, especially if your closing date is a little more than 30 days out. I’m wondering what we should have done beforehand to make this part easier, because we feel really rushed.
I find this VERY frustrating as well. How did everything work out?
@@tarawalton6778 When we sent them official requests they did send Loan Estimates. The person we were originally working with had a higher interest rate than the other so we ended up switching lenders. It was stressful for a week or so, but we’re so happy with the rate we got.
Outstanding work, sir! Well done.
Thank you, sir!
Another great one. Intersting that you are in Dayton Ohio because I was born there and lived in Huber Heights OH for 22 years. Thanks for posting.
Oh wow! Thanks for watching!
Did my refinance 2 times, bought my house september and able to get rid of pmi asap.. I never pay for any closing cost.. If you know what your doing, u will not be cheated
Yes, I agree. It is nice that you took the effort of knowing things first before you get into that loan. Thanks for watching!
The lender was trying to rip me off. Over 22k to close. Was trying to charge 16k in fees and 10k down but added 5k back to the mortgage. Meaning only half of the down payment was even applied to the loan. He had loan orig fees, processing fee and underwriting totaling at $10k. Two weeks to close and I said not going with them. Supposed to close in a week so not sure if It will
Oh no! Is it possible it was an FHA loan and the up front mortgage insurance was added to the loan?
I'd be happy to take a look if you'd like. Feel free to email me kyle@winthehouseyoulove.com
When to ask for true cost break down? Because my potential lender is keep giving me examples saying to go over options when we make an offer
After watching this I'm very thankful for my lender! The actual closing costs at the table is a couple thousand less then my original estimate came in at.
Congrats!
Wow several thousand less is a huge difference! Do you remember which parts the lender overestimated in the original loan estimated compared to the closing disclosure?
Always ask for "Cash to close" rather than their fees
Thanks for watching!
You always share helpful information. I've shared your videos with clients because you tell the truth and you educate. Thank you!
Awesome! Thank you!
My lender sent me a loan estimate but it didn’t include the earnest money or the sellers contribution to the deal. She keeps saying that it’ll be updated “later on in the process”. It’s been 21 days & the appraisal hasn’t been completed. I’m backing out of the deal.
Agree with getting all costs up front. I was a mortgage lender for 6 years following 35 years in banking. The most important thing is to find a loan officer you can trust. He or she should WANT you to have all the costs up front along with the full monthly payment because you will need to qualify based on those and the loan officer loses a paycheck if you end up not qualifying. Choose a loan officer like you'd choose an electrician or any other professional - by referral from a satisfied customer - best if from someone you know personally.
These days a loan officer cannot legally quote just a rate without quoting the A.P.R. as well. It's very easy to estimate costs and there are templates for this. I used an Excel template that proved to be very accurate. Lenders usually want to OVERestimate costs because they know a good surprise is better than a bad one, especially when some is being allowed to spend less than they expected!
Hey Bruce! Thanks for sharing your experience as a mortgage lender. I completely agree with you about the importance of finding a loan officer you can trust. Having all the costs up front, along with the full monthly payment, is crucial for qualifying and avoiding surprises later on. Referrals from satisfied customers are a great way to find a reliable loan officer, just like you would with any other professional.
I am afraid to make the leap.
I think at this point you probably know more than most lenders and realtors!
@@WinTheHouseYouLove personal confidence is the bigger block. Can you give me a push?
If I have my credit score number letters and I choose to go to 3 different lenders,each one of them has to run the credits again?
We just closed a house last night. Our lender never transpsyto us since day one. They quoted us lower than what we paid when were in the title company. From $35K plus to $40K plus already and none of them( my agent and my lender) showed up during my closing. So upset with them! We found out that my agent and the lender officer are friends. That’s why our agent told us to switched from our previous lender and give us a new lender.
Hi ,I am honestly going through this right now, I am in the middle of my contract in which I am just a stone throw away from closing.Then he surprised me with a new coat of 20k more.At this point I wish I could switch him.
In the process of a new build in PA. Loan process is a nightmare. Difficult to obtain 3 loan estimates. In fact while watching your video, one potential lender (you alluded to them ) seems a little sketchy to me after doing some on line research. I love this channel. Do you do loans in PA?
You. Are. Damn. Awesome! Thank you!
I’m slated to close on Monday. My lender is a wolf in sheep's clothing. Promised my closing cost would me no more than 23k and hid the numbers all the way to the end. Now my cash to close is 29k
Oh no!
I used a mortgage calculator from a prospective lender and I got a rundown of all the costs, even prepaid reserves. 1. Is this a good sign of an honest bank to work with? 2. Will these numbers be close to what I’ll be looking at at the closing table? Thank you
It's a range, you can also try my own calculator in this video. I hope it will also help.
My loan is only 363750 but my closing cost is 24k something. And then there are more ads on that adds up to close to 50k. I have to be getting rip off somewhere
It sounds overwhelming, but closing costs can include various fees like origination fees, taxes, and insurance. To ensure you're getting a fair deal, compare your current quote with what we can offer at www.winthehouseyoulove.com/compare.
Love this video🏠❤️Do you o loans in Fl?
Yes, I do. You can check my website for information: www.winthehouseyoulove.com/
Thanks for the info! The information was really helpful. Quick question for you. If a lender doesn't list an underwriting fee in Section A, are they allowed to add it later after a loan package estimate was already provided?
They can, but you are not allowed to pay for it. Section A costs are under zero tolerance meaning any overage not approved by a valid Change of Circumstance must be covered by the lender
Can you explain if there are tricks in "no closing cost" refinances?
Great question, if you can remind me on the next live I'll talk about it :)
There’s always closing cost, when it comes to refinances the closing cost are financed into your loan. I’m a loan officer I’m Chicago.
*in
Yes they are jacking up your interest rate to cover the closing costs. Whenever any lender offers no closing cost refinance ask what the rate would be if you paid closing costs. The other trick is they say no closing costs but they mean no out of pocket closing costs so they increase your loan amount to cover closing costs. Overall if it sounds to good to be true it is
My loan officer tried to charge more on origination fees. But I caught him and he charged me 1K more for something else
Ew I hate that
This channel is the best!
Coz I have the best audience! Thanks for watching!
So my questions is how do we shop with lenders and find out which is right for us without having different lenders run our credit to give us an accurate interest rate? Or is this something that is inevitable?
It is inevitable but you are allowed to run multiple apps within a 30-60 days counting only as one inquiry. Doesn’t mean it won’t hurt your credit score a little bit but it’s nominal.
@@parsiafadakar Yep he did say in another one of his videos, your score goes down about 0-5 points
@@alrightnow7248 yup that’s similar to what I tell clients. 3-5 points and normally you’ll recover the score after 1-2 months!
Your video was so helpful thanks 🙏
Thank you so much!
On a 525k VA loan. Originally edtimate wad on 525k Once we wrapped the VA Funding Fee on the loan now we are being qouted 536k with a higher loan amount and higher monthly payment. In addition, the 1/1 buy down amount increased ad well. The section A went up as well (500.00) extra on underwriting fee from the estimate. Does this sound normal?
I wish you were in Florida!
I see so much bait and switch. I’m a rescue lender so many times because of these issues. I am very transparent and up front with people. Treat people with the platinum rule and you will never go wrong.
Can anyone identify which Veteran lender he’s referring to has been shady? Home buying is hard enough for normal people, but even more daunting for military members and veterans.
I can’t name specifics without opening myself to a lawsuit, but think of company’s that target veterans with their entire brand/company name/etc
You don’t get your rate till your in contract and it’s locked , some people think the preapproval default rate is the rate
Should we be asking the lender their fees up front?
You can! However, since you always want to know what points may or may not be charged, I’d recommend waiting to see it on the full quote since almost every lender has the same underwriting fee. Thanks for watching!
I had to ask 1 million questions to get my loan officer to admit that I will have additional closing costs besides the down payment. Smh.
if you're buying a house, and don't know you're going to have closing costs.....you probably shouldn't be buying a house. not trying to be rude!!! just saying --- you're going in BLIND
@@Seashellsbytheseashore21 already knew. The point is that the person who was supposed to be transparent about it wasn’t!
What is a reasonable percentage a lender/bank charges for a re-fi?
I'm a veteran- 80 percent disability. Guaranteed Rate waives their lender fee. How is that? Will they recoup the cost somewhere else? I am shopping around. Thanks!
I’m rechecking my closing costs from 2 years ago. My original fees go as such:
2.514% of Loan Amount (Points) = $12,113
Underwriting Fee = $1,055
Did I get screwed or something?
21,000 to close up here in NY 😭
Mesmerized by your note overlay. How are you recording (i.e. what software) and how do you get that transparent overlay? BTW great video too!
I signed my loan documents with the cash to close being $200 10 days before they send me another document saying when i chose to lock in the cash to close was actually $5000. I'm not buying it..
Oh no! Check with your loan officer on what changed
Taxes have doubled and tripled in many areas, insurance as well. There's both planned Obsolescence and accidental Obsolescence... Due to ignorance, if you don't know, you don't know.
Helpful video! I am following your channel 👍🏻
Welcome to my channel! I hope you will learn tons here. Thanks for subscribing. :)
Should i not compare escrow and prepaids across different lenders when shopping loans?
For example do different lenders have different prepaid or escrow requirements which you may consider when deciding which lender provides better overall value?
This entire video explains that. The answer is no. Those do not change. Those are set by county and your insurance you go with
Can you change from lender to going to a bank when your threw a offer on a home and got approved but also got approved from a bank and the lender has a higher interest but still haven't signed the final closing coast
Thank you very much for your video! I have one question. I’m still shopping for mortgage, and one of the loan officers I contacted is asking for a deal sheet. I’m still not sure whether I will sign up with that bank yet, and want to shop little more. I’m just wondering what they are going to do with the deal sheet if i provide it to them. Or should I not yet?
Does having 3 different lenders mean 3 separate credit checks?
Yes. They only impact your score as 1 credit check.
As someone 16 years in the business the algorithm sent this video to me. I feel you got it a little backwards. What I feel is shady is when I get an competitors LE with severely underestimated escrow collection (1month taxes and 1 month insurance…then 1 day interest lol) that’s shady. Really on a purchase the 800 fees SHOULD be what the consumer is focused on because the rest an unscrupulous lender can make look more attractive. I’m talking LE’s specifically.
I subscribed, look forward to more content. I mean your not wrong, especially on the underestimated payments, see that a lot.
Lol the 1 day interest is always in there 🤦♂️
I close Monday and that's what my loan officer had done fees kept going up. Will find out for sure Monday how much so far 3k at least 🙄
Wow! Best of luck!
What a low budget lender… “we’ve got you pre-approved, 2.75% rate. Good luck! Happy home shopping!”
-0.643 rate!! Lock in today!
Excellent video!
Thank you! Cheers!
Ours said we needed 19k. 6 weeks before closing it changed to 31k. Had to come up with 12k in a month but we did it.
Dealing with the same thing now.
Ask if you can drop the escrow by seeing how much of a down payment you need to do this, them you can take the Responsibility of paying the Property taxes, HOA, and House Insurance yourself? Did I leave anything else out?
Can you ask for a loan estimate of a previous client with private information removed?
i’m thinking if the loan officer can provide a estimate within that year for someone of the similar housing cost area and credit score that people could have an even better idea of the real cost associated loan .
What software do you use
Costco was the best $250 loan fee
Great timing on this video! I'm going through this now. Thanks for the info!
Sure thing thanks for watching!
@@WinTheHouseYouLove I'm supposed to be closing on Friday but still waiting on appraisal and cash to close going up every week!!!🥴🥺 please help
@@russycox 🙏🏾🙏🏾🙏🏾
@@AsIs2884 thanks ima hope for the best
I disagree on only focusing on section A fees. Some lenders will lump all of their costs in section A, some tend to break down some of those costs in section B to make section A look better. Section B costs can increase up to 10% so this can make a difference.
I agree. I've started to include in videos since this one to look at Sec A and B
Thank for this information. So when shopping for a loan agent asking thier costs seems practical because the rest is beyond their control. Is that fair to say.
Yep, the lender can only control Sec A
Just found out brokerage fee is not always on a loan estimate, it was on my closing disclosure. I was upset about this, can anyone explain how this was on the closing disclosure and not on a loan estimate?
It 100% should have been on the Loan Estimate. Please email me your Loan Estimate and Closing Disclosure and I can review and see if I can help kyle@winthehouseyoulove.com
my loan offer said it shouldnt be more than 7000 while we already have a pending contract. when it finally finished, it was whopping 16k. I'm like holy fuck
Icky
😮BIG difference!!
🤣🤣🤣,....
Sounds like it's too much trickery going on with these greedy loan officers trying to make a year salary on one deal! If I was quoted something and the actual amount was double the quote, I would run fast from that person 🏃🏃🏃🏃🏃
Thank you for this!
Thank you so much for watching!
Can you sue the mortgage company for their deceitfulness?
CFPB...
I was waiting for this but luckily closed with only around $700 total for all of the closing costs. Pretty surprised honestly how low it ended up being.
Wow can I ask who did your loan
Wow! Congratulations!
ABSOLUTELY AWESOME!!💯