Consumers have many choices when it comes to home loans. A great deal of caution is advised to ensure that you get the loan product that fits your needs and that you understand the terms of the loan completely.
In today's real estate market of high-priced housing, finding the lowest rates for a mortgage becomes a priority for many consumers. With 80% of the home buying public going online to start the search for homes, rate shopping online is now becoming very popular. In most cases once you identify the real state agent you'd like to work with, they will also recommend a loan officer to pre-qualify you and offer their rates.
Generally speaking the rate quotes that you get online may be lower than what you receive from your referred loan broker or a tried and true brick-and-mortar bank. The only benefit an online broker can offer you is a lower appearing interest rate. The real question is whether you will end up with the rate advertised. Within interest rate structures there are many layers of pricing. The pricing of a loan can be affected by many things; including your credit score, your amount of down payment, whether the home is attached or detached, the length of time the interest rate is locked for, the type of loan program, impounds that are included, the level of mortgage insurance used whether the loan is for a purchase or refinance, and your income to debt ratio among other things. As you can see there are many factors that can affect the interest rate you receive at closing. The problem of rates quoted in print and online has received so many complaints that the Department of real estate in California has instituted new laws requiring lenders to be able to prove their ability to deliver rates that are advertised. If you do choose to go with an online broker make sure you protect yourself by asking for a good-faith estimate so you know exactly what costs are involved and also for a written interest lock commitment that has a period that matches your escrow period.
The benefit of working with your real estate agent’s loan officer is usually a proven track record of rates quoted and delivered. Another great reference could be a referral from a friend or family member who has had a good experience with a lender. Consider a situation in which you wanted to take legal action for non-performance, do you know where the corporate location of the online lender is. There is another side to this issue, which is the quality and knowledge of the person handling the processing of your loan. Many loans need the skill of an experienced loan officer to handle any issues that may occur and be able to close your loan. This can be especially important when you think of the contingency periods within your contract. The standard contracting California calls for contingencies to be removed within 17 days of acceptance of your offer. Once this 17 day period has passed your deposit may be in jeopardy if you have removed this contingency and cannot close escrow. If your broker has not discussed all of the conditions of your approval your deposit could be at risk just because you started out trying to find a lower rate.
To conclude, finding a loan officer with a good reputation and a proven track record can prevent you from overpaying for your loan or even losing your deposit and the home you are trying to buy. However if you do decide to try your luck with an online broker be sure to protect yourself by getting everything in writing and understanding which you are agreeing to.
The Window of Opportunity for San Diego Homebuyers Quickly Disappearing.
There market can turn on a dime. The signs are already there, multiple offers and short market times are signaling a change. Many buyers will be caught unawares as the market changes and the opportunities to buy bank owned homes diminish.
100% Financing in San Diego Survives the Sub-Prime Meltdown.
Although the sub-prime meltdown has shaken up the housing market there are still great opportunities out there to use 100% financing and leverage yourself so that lenders are taking all of the risk in your home purchase.
Is the Bottom of San Diego's Real Estate Market Here?
There has been much speculation about the length and depth of the current market slump. Many homebuyers are sitting on the fence waiting for the bottom of the market and may lose one of the best opportunities to buy below market for the next 10 years.
