The first house I bought, I was initially pre-approved by Bank of America. I put an offer on a house for less than I was pre-approved for. When it went into underwriting Bank of America said my debt to income ratio was too high. I had no debt. It was only the potential mortgage. Instead of doing and FHA loan they wanted to do a variable interest rate to give me the loan. I ended up not using BOA for my mortgage and instead went through State Farm; which was a better experience.
@@JebSmith yeah! They only do conventional mortgages, but they were great to work with and they service the loans themselves, instead of selling it off.
I think this is the most nerve-racking part for me finding someone to trust. Thank you for this video pointing out the red flags I will definitely make to look out for those. Thank you for this concise and well organized video.
Here’s what you do. Go to 3 local banks, why local ? They offer better rates. Get pre approved for each bank, look at the rates and the terms. Go with what fits your needs the best. Why not just go with a mortgage broker? Cause their looking at making the most money not your best interest.
Unfortunately that's not great advice. Yes, you should definitely go to a local bank and check their rates/fees but you should definitely check with a broker as they typically offer both better rates/fees and come with a professional that actually knows what they're doing and not someone who is moonlighting as a mortgage professional when they are actually a bank teller. At the end of the day, you can always compare and decide who you want to go with. On top of that, brokers have access to more programs on top of other lenders they can send their loans too.
I found the same, I was seeing red flags with the broker not presenting half of are income on the application. Pushing loaning more money than we had left to pay. 25 year amortization when we had 4 years left to pay. Saying my income isn't good enough. Went directly to the banks and they're fighting over us. Low debt to ratio, 5 sources of income, great credit, no personal debt. Brokers get paid by the bank.
When I bought my house, I initially went with Chase who was recommended by my real estate agent they were the worst. Their communication is terrible, and the overlays they have on their mortgages are crazy weeks before closing I was told because of their overlays I could not get a mortgage on the property the deal almost fell apart. Another smaller lender closed on the loan a week later. The bigger banks have way more overlays, smaller lenders are better to deal with. Some agents like to work with certain lenders because they scratch each other’s backs, but don’t always go with who your agent recommends especially if it’s one of the big banks.
Great info, but everything I see online indicates that the window to make additional credit pulls without incurring an additional hit to credit scores is only 14 days, not 45 days.
I was put through the ringer from a lender named joe pappas from Victoria finance. Was pre approved then 2 weeks before closing told me i had to pay off 5k worth of debt. I payed it off then had another excuse after another. The agent we had recommended him and it was the sellers agent also. I believe they got a better offer after signing with me and did everything they could to get rid of us.
We got screwed by a lender via LGI homes, who said we would get down payment assistance, only to tell us on the morning we were due to close, that we did NOT qualify- made too much- and that we needed to come up with 10k within 24 hours. We had to walk away from our dream.
Man that sucks. I'm dealing with all those jerks right now and it doesn't surprise me at all. So what did you guys end up doing? Have you bought a house?
🙄 a personal experience in Indiana.. currently my mortgage loan went into underwriting 3 weeks ago. Had to verify that I lived somewhere 4 yrs ago, they couldn't verify my employment, that was my employers issue(why didn't they do this a year and a half ago when they preapproved me😶 only the loan gods know..) they had to verify that my consolidation of student loans was really a consolidation and not a new loan via a 3rd party, even though they had the letter from federal student loans showing that it was a consolidation, the appraiser used pictures from zillow instead of HUD approved websites. Going into week 4 with no CTC, even though lender says this will be approved.. I have my doubts 🤨 we will actually close next week.. lender says they are nitpicking my loan and there are things she has never seen in her 25 yrs of lending😐... I am currently looking for a rabbits foot or a 4 leaf clover... I wish I had known this since earlier this year rate was 3.5% now we are at 6.75%🤦♀️
What about if you are buying new construction? I'm in Florida. Sumter County. They are offering 5.75 for fha/ 5.99 for conventional? Plus closing cost? However the house is $304.000 too expensive for me ? I'm offering $289.000 they said no. Help!
It’s going to be a very long time before prices hit the 2022 bubble peak again. Buy good deals. There will be more and more good deals over time. Use Jeb when your ready. Be patient.
@@JebSmith because you copied an almost identical video I made a few days earlier almost verbatim. If this were a University setting, you'd be sitting in the deans office learning that you're being kicked out of school for plagiarism
Hi Jeb I just signed a new house. I got $14500 seller credits to buy down interest & closing cost. The lender told me use seller credits to buydown points which make interest rate 6.5 to 5.87 APR. My plan to use seller credits for closing costs. Any suggestions?
To each his own. Buying down the rate is a sunk cost so if you think interest rates are going to be lower in the near future and you plan on refinancing then that could be a waste of money
I'm not familiar with that specific program but there are several banks that have similar programs. They are typically good program with competitive rates but I'd still shop around just to compare.
Tring to get a pre approval for va loan right now but I have a question. Does it matter which lender I choose from? can I switch around lender with that first approved approval or do I have to apply another pre approval if I find some better lender with better rates?
There are so many lenders but I'm in a position where I have to start shopping soon but I need that pre approval up front. I wonder if I can just ping pong around with first pre approval from first lender.
I have questions. If the mortgage loan is under gone, all posses and approved,locked interest rate.but I want to apply for a different lender see which best. Is ok to do it, or do I stucked with first ( do mind I have not applied for 2nd lender yet)
my question would be why? You are not obligated to do business with any lender however if you switch lenders you might not be able to close on your home on time
✅ - Get a Referral to a Mortgage Lender or Realtor - www.jebsmith.net/referral
What's a Federal Reserve Banks Operating Circular No. 10 LEANDING application?
The first house I bought, I was initially pre-approved by Bank of America. I put an offer on a house for less than I was pre-approved for. When it went into underwriting Bank of America said my debt to income ratio was too high. I had no debt. It was only the potential mortgage. Instead of doing and FHA loan they wanted to do a variable interest rate to give me the loan. I ended up not using BOA for my mortgage and instead went through State Farm; which was a better experience.
Congrats? State Farm does loans?
@@JebSmith yeah! They only do conventional mortgages, but they were great to work with and they service the loans themselves, instead of selling it off.
I think this is the most nerve-racking part for me finding someone to trust. Thank you for this video pointing out the red flags I will definitely make to look out for those. Thank you for this concise and well organized video.
🙏🙏🙏
One of the best video on mortgage so far. Thank you sir
Glad it was helpful!
Jeb can you also make a video of Realtor red flags to watch out for?
Yes, good idea.
You want a realtor who is full time and who has seen good and bad markets.
Im a mortgage broker in Texas and I agree with Jeb. This is all sound information
Here’s what you do. Go to 3 local banks, why local ? They offer better rates. Get pre approved for each bank, look at the rates and the terms. Go with what fits your needs the best. Why not just go with a mortgage broker? Cause their looking at making the most money not your best interest.
Unfortunately that's not great advice. Yes, you should definitely go to a local bank and check their rates/fees but you should definitely check with a broker as they typically offer both better rates/fees and come with a professional that actually knows what they're doing and not someone who is moonlighting as a mortgage professional when they are actually a bank teller. At the end of the day, you can always compare and decide who you want to go with. On top of that, brokers have access to more programs on top of other lenders they can send their loans too.
I found the same, I was seeing red flags with the broker not presenting half of are income on the application. Pushing loaning more money than we had left to pay. 25 year amortization when we had 4 years left to pay. Saying my income isn't good enough. Went directly to the banks and they're fighting over us. Low debt to ratio, 5 sources of income, great credit, no personal debt. Brokers get paid by the bank.
When I bought my house, I initially went with Chase who was recommended by my real estate agent they were the worst. Their communication is terrible, and the overlays they have on their mortgages are crazy weeks before closing I was told because of their overlays I could not get a mortgage on the property the deal almost fell apart. Another smaller lender closed on the loan a week later. The bigger banks have way more overlays, smaller lenders are better to deal with. Some agents like to work with certain lenders because they scratch each other’s backs, but don’t always go with who your agent recommends especially if it’s one of the big banks.
63.7K. The cream will always rise to the top. Waiting for you to hit 100K!!! Great stuff as always. Cheers!
Appreciate the support, you've been here for the ride.
Great info, but everything I see online indicates that the window to make additional credit pulls without incurring an additional hit to credit scores is only 14 days, not 45 days.
The article is in the description of the video from the CFPB
I was put through the ringer from a lender named joe pappas from Victoria finance. Was pre approved then 2 weeks before closing told me i had to pay off 5k worth of debt. I payed it off then had another excuse after another. The agent we had recommended him and it was the sellers agent also. I believe they got a better offer after signing with me and did everything they could to get rid of us.
Bank of America offered me a personal loan at 6% llike 8 years ago. The day I signed, the rate was 16%.
THANKS FOR SHARING YOUR KNOWLAGE ON REAL AND MORTGAGE GUIDELINES NICE TO HAVE THAT AMMO IF NEEDED WHEN DEALING WITH LENDERS..
Great video! I’m a new subscriber. Question: is your lender good for other states?
We got screwed by a lender via LGI homes, who said we would get down payment assistance, only to tell us on the morning we were due to close, that we did NOT qualify- made too much- and that we needed to come up with 10k within 24 hours. We had to walk away from our dream.
that stinks..........Sorry to hear that.
Man that sucks. I'm dealing with all those jerks right now and it doesn't surprise me at all. So what did you guys end up doing? Have you bought a house?
Love your videos it's true ,got stuck
In a mortgage dale
For a ,a year and stall ,give them all paper , it sover a year ,still waiting
I had mortgage company attempt a "supa" tacky bait and switch. I did not refinance with them and started the entire process over with a new lender.
Good for you!
Do THIS To Lower Your Monthly Mortgage Payment ⏩Watch this NEXT ⏩ ua-cam.com/video/iMSHsF9-kYU/v-deo.html
Thank you for this information!
🙄 a personal experience in Indiana.. currently my mortgage loan went into underwriting 3 weeks ago. Had to verify that I lived somewhere 4 yrs ago, they couldn't verify my employment, that was my employers issue(why didn't they do this a year and a half ago when they preapproved me😶 only the loan gods know..) they had to verify that my consolidation of student loans was really a consolidation and not a new loan via a 3rd party, even though they had the letter from federal student loans showing that it was a consolidation, the appraiser used pictures from zillow instead of HUD approved websites.
Going into week 4 with no CTC, even though lender says this will be approved.. I have my doubts 🤨 we will actually close next week.. lender says they are nitpicking my loan and there are things she has never seen in her 25 yrs of lending😐... I am currently looking for a rabbits foot or a 4 leaf clover...
I wish I had known this since earlier this year rate was 3.5% now we are at 6.75%🤦♀️
Yikes......hopefully it all works out. Sending positive vibes your way.
De did that to me , they do with my dad taxes I tell him that my dad was only one year in that job
👄Great information THANKS👍
Never get variable interest rate
Great Video!
Thank you
What about if you are buying new construction? I'm in Florida. Sumter County. They are offering 5.75 for fha/ 5.99 for conventional? Plus closing cost? However the house is $304.000 too expensive for me ? I'm offering $289.000 they said no. Help!
It’s going to be a very long time before prices hit the 2022 bubble peak again. Buy good deals. There will be more and more good deals over time. Use Jeb when your ready. Be patient.
Appreciate it.
Thank you!
You're welcome!
Nice video, very original info! LOL.
What's the LOL for?
@@JebSmith because you copied an almost identical video I made a few days earlier almost verbatim. If this were a University setting, you'd be sitting in the deans office learning that you're being kicked out of school for plagiarism
Hi Jeb
I just signed a new house. I got $14500 seller credits to buy down interest & closing cost. The lender told me use seller credits to buydown points which make interest rate 6.5 to 5.87 APR. My plan to use seller credits for closing costs. Any suggestions?
To each his own. Buying down the rate is a sunk cost so if you think interest rates are going to be lower in the near future and you plan on refinancing then that could be a waste of money
I would put that money toward closing costs. using 14500 to only buy down barely a point seems expensive.
@@JebSmith Rates are not going lower anytime soon.
Currently in the process myself, I have them paying all closing costs plus buying down the rate with the remainder of the difference.
Are there any degrees or licenses that lenders should have which show their credibility? Do they have education and schooling in their field?
Hi Jeb, what is your take on Physician Mortgage Loan for a first-time home buyer? What is your opinion on Citizens Bank Physician Mortgage Loan?
I'm not familiar with that specific program but there are several banks that have similar programs. They are typically good program with competitive rates but I'd still shop around just to compare.
Tring to get a pre approval for va loan right now but I have a question. Does it matter which lender I choose from? can I switch around lender with that first approved approval or do I have to apply another pre approval if I find some better lender with better rates?
There are so many lenders but I'm in a position where I have to start shopping soon but I need that pre approval up front. I wonder if I can just ping pong around with first pre approval from first lender.
For me, I applied through 3 lenders and received all 4 pre-approvals. With that I then went shopping for the house knowing I was already approved
what do you know about mortgage solutions financial are they legit?
I have no knowledge of the company. I would check reviews and try to find someone that has used them to get a reference point.
Is rocket mortgage a lender
yes and not a very good one imo
Is it a way I can talk to you 1on1
I need a ninja loan! I'm do the flip 😀😀
can i edits your UA-cam videos
I have questions. If the mortgage loan is under gone, all posses and approved,locked interest rate.but I want to apply for a different lender see which best. Is ok to do it, or do I stucked with first ( do mind I have not applied for 2nd lender yet)
my question would be why? You are not obligated to do business with any lender however if you switch lenders you might not be able to close on your home on time
Bill Clinton as your advertisement so I decided to not watch at all. I stay clear of demons
hahahaha, unfortunately I don't have a choice over those.
Going through this now!
p̳r̳o̳m̳o̳s̳m̳