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Oleg Potemkin (RA)
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Oleg
Potemkin (RA) Hawaii Realty Associates, LLC
Honolulu, Oahu, Hawaii
Direct:
(808) 398-9987 Fax: (808) 538-8081 E-mail:
info@hawaii-realty.com
10
Secrets That Save Money When Shopping For A Loan!
Read This
10-Point Report Before You Sign Any Mortgage!
Some of the biggest
misconceptions held by buyers relate to the belief that all lenders,
and all mortgages, are pretty much the same. Also, buyers tend to
think that the mortgage process doesn’t start until AFTER you find
the house you want, and negotiate a successful offer. These
misunderstandings are not surprising when you realize that the vast
majority only experiences the mortgage process once or twice in
their lives.
Unfortunately, in this situation, Ignorance is certainly NOT bliss!
If you fail to ask the appropriate questions of your potential
lender, you may do serious damage to both your negotiating position
and your pocketbook.
Questions You should Ask EVERY Lender
BEFORE you shop for a house.
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Will you
pre-approve me? This is very important. Negotiating is much
easier for the buyer when the seller KNOWS, ahead of time, that
you will get your mortgage.
-
How quickly can
my loan go through? Again, if the seller knows you can close
quickly, this may sway the negotiations in your favor.
-
Do you carry
Adjustable Rate Mortgages? The lower the rate (Adjustable
Rate Mortgages have initial rates lower than fixed mortgages)
the more you can qualify for. While you may not opt for this
mortgage in the end, knowing it is available is like putting an
extra ‘line of credit’ into your pocket.
-
Do you have
Convertible Loans, or loans with a conversion option? If you
do find the need to use the Adjustable Rate Mortgage, can you
change it to a fixed rate in the future? At what cost?
-
Do you carry
fixed-rate mortgages with 30-yr. terms? With 15 yr. terms?
This is “vanilla” in the mortgage world. However, comparison
shopping of items like interest rates, application fees, points,
and other lender closing costs can yield you substantial
savings.
-
Are you an FHA
DIRECT lender? If this is an option (and many first-time
buyers go FHA), then this is a good question to ask. Sometimes
the processing time can really be shortened with a direct
lender. Again, this is a good negotiating tool, since it may get
you to the closing sooner.
-
Are you a VA
DIRECT lender? For those who qualify, a VA loan can be a
wonderful option. Again, dealing with someone who is a Direct
Lender for this type of loan can really streamline the approval
process, and help you with the seller.
-
Do your mortgages
carry a pre-payment penalty? Pre-payment penalties, which
had all but disappeared from the industry, have recently reared
their ugly heads again! ASK! And make certain you fully
understand the circumstances under which you may trigger that
penalty.
-
Are you a
portfolio lender? Some lenders keep the loans they make
“in-house”, and some sell the loans to other institutions.
While it does not impact you (or the terms and conditions of
your loan) if it is sold, there is a good reason for asking this
question. Portfolio lenders often have more leeway during the
approval process, and can tolerate past credit problems that
others may not want.
-
Are your fees
negotiable? Let the lender know you are comparison-shopping.
Politely asked, this question will appear to be just one more
factor in your decision-making process. If the lender really
wants your business, you may be surprised by the answer! In any
case, if you don’t ask, you can be certain that no one is
going to just offer to drop his or her fees.
Taking a few minutes to
ask these questions of a number of lenders can pay off big time.
These benefits may come in the form of a more favorable negotiating
position for you with the seller, and/or as a direct saving in
relation to your loan. In either case, doing your groundwork with
lenders is a smart and important way to begin your home buying
process.
Your
Hawaii Real Estate Specialist
Oleg Potemkin (RA) Hawaii Realty
Associates, LLC
4211 Waialae Avenue, Suite 1020,
Honolulu, Hawaii 96816 USA
Tel: (808) 398-9987 Fax:(808)
538-8081 E-mail: Oleg@Hawaii-Realty.com
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