A really outstanding mortgage loans officer in a first rate mortgage
homes loans company will charge you fees that will be worth every penny. Arrows Real
Estate is here to help you through this process. You will learn about the
procedure of obtaining a mortgage loan by understanding the three main aspects of this
component in acquiring property.
Component No. 1: The Mortgage Loan Officer
Component No. 2: Points
Component No. 3: Fees
Component No. 1
When you shop around to apply for a mortgage, why should it be any different from
shopping in a department store? If you try to buy something in a store and do not
qualify to make the purchase, does the store say, "We are keeping some money from you
simply because you took our time up in trying to buy something?" Of course not! But,
when you apply for a mortgage, the mortgage loan officer tells you there is a
non-refundable fee. How fair does that sound?
Also, it is very important to understand the type of lender you select. Some are very
ethical and truly understand the mortgage business and others know something about making
loans and it is their way of making their living without any real understanding of how
mortgages work and how to help you gain the best mortgage for your real estate property.
In your personalized program, you will receive detailed
knowledge about mortgages. Some Mortgage Loan officers ask for certain fees from
you both at the time of the loan application and at the time of the closing. These fees
defray their cost of doing business. Therefore, if you are doing business with high class,
first rate mortgage loans officers who provide you with outstanding services using
integrity along with performing what they promise to perform without constantly upsetting
you, you may pay more fees but it will be well worth it in the long run.
There are numerous fees involved in applying and obtaining mortgage loans. If you
have nerves of steel, you may approach your mortgage loan process in the following manner
set out below. If you have more delicate feelings and thoughts, you will receive detailed
instructions in your personalized plan.
Step 1: Tell the loan officer that you are applying and will pay only upon a
successful loan approval. The loan officer will not like this at all. Alas, what matter?
Step 2: The mortgage loan officer takes your application. You nervously wait to
see if you will be approved. Why does it take so long? Because the mortgage loan officer
is busy doing other things. You file is not his only concern! He takes the application and
tries to place it with a lender. The lender looks at it and decides to ask for more
information. Why? Well, for one, they think that’s cute. They are trying to meet
federal guidelines but also they are busy with other files. It should be a simple process
but the mortgage loan officer is dealing with the actual lender who is dealing with the
government who is what? Going out to lunch rather than paying attention to your file. The
mortgage loan officer tries time after time to get your loan through from some government
controlled agency worker who does not care about much but his pension fund.
Therefore, tell the lender if he continually asks for more information that you are moving
on to another lender.
Finally, you will find the mortgage loans officer in a mortgage company who will pay
attention to your file application. All will go smoothly and you will receive loan
approval in just a few days’ time.
Component No. 2: Points
Points are charged to make money for the lender. These points are negotiable. You have
to be really tough to pay fewer points. You will want to give in, and go along with the
lender on the number of points you will pay. The big boys usually win at this part of the
battle, though. One lender told me that he did not make a loan for less than 3 points
because it just wasn’t worth it. He needed the money to support his family.
Component No. 3: Fees
It is at this point of the real estate transaction that the going gets really
interesting. Fees are added to make money for the lender. These fees include many
creative items, all created by the lender to add income from your pocket to the
lender’s pocket. A few creative items are going to appear on the bottom of your
closing statement when you go to the closing. It is at this point in time that the lender
knows you just want to get the papers signed so you can say you "own" a piece a
property. Ask for the list of these fees ahead of time, like at the time of loan
application. If you do not want to pay these fees, all you do is tell your lender you are
move on to another lender. Eventually one lender will be so eager for business that some
of the fees will be waived. This will start a new trend in real estate to make it a better
place to do business. A really outstanding mortgage loans officer in a first rate
operation will charge you fees that will be worth every penny.
