How To Purchase House

With interest rates rising rapidly, it is more important than ever to make the most of every loan. As refinances begin to dry up and you begin to deal more with purchases, you will undoubtedly encounter new roadblocks and hurdles on the way to the closing table. It’s a fact–purchase loans are far more time consuming and stressful than their refinance counterparts.

Borrowers are emotional, erratic, demanding, panicky, unsure, deliriously happy or sad and a whole host of many other emotions. In their minds, they’ve picked out the carpeting and wallpaper and have mentally already moved in! Geesh! Try dealing with a person who thinks they’re the landlord and they don’t even have the keys yet!!!

Keeping this in mind, here are some tips when dealing with purchase loans. These come from my years of experience and many number of loans (I’ve lost count.)…

1. Don’t show your hand too early (meaning the interest rate you can offer). Explain to the borrower that it is up to them when they decide to actually “lock-in” the interest rate. If they press you for an actual rate, tell them what today’s rate is you can offer, and that you will watch the interest rates for them. If they drop, you will call them at the first moment. What you really want to do here is knock the borrower off their “rate” short-sightedness. Say something like, “Well, as you know, the interest rates change every day. With purchase loans, time is critical. What we can do is get the process started, so that you don’t lose the house, and when the interest rates get to a point you feel comfortable with, we can lock it in for you. We will be working hand-in-hand through the entire process. Now, how do you spell your last name?”.

2. Explain the difference between a pre-qualification and a commitment letter. Borrowers think just because they have been pre-qualified somewhere, that it guarantees them the loan. This isn’t the case. As you know, the underwriter has the final say. If the property does not appraise for the correct value, the borrowers’ situation changes, or the seller pulls out, the deal is dead. These are things entirely out of your control. What I tell borrowers, is that we are going to go one step further than a simple pre-qual letter. We want to give them an advantage with their loan, and get them a full commitment letter from a lender as soon as possible. This lessons the chance of them getting their expectations set too high and not getting the loan in the end.

3. Phone the real estate agents early on and explain you are in control of the process. Call them BEFORE they call you. You want to show that YOU are in control—NOT them. Doing this, puts you at a higher level and they will respect you for it. Believe me.

4. Set expectations with the borrower upfront. Explain the entire loan process from start to end. First-time homebuyers just simply don’t know. Emphasize to them, if they have any questions, to call you first—NOT the realtor.

5. Make it known that you are the point of contact for all parties involved in the transaction. This includes the seller and buyer agent, appraiser, lawyer, title companies, etc. Usually, the realtor thinks they are in control for the whole process, but remember the sale is mostly out of their hands after the purchase and sales contract is signed. Then it is entirely up to you—the loan officer—to succeed! By being the “driver” in the process, you can minimize any confusion or crossed signals that may arise.

6. If you get a sales call from a borrower looking to purchase a home, ask if they have already been pre-qualified elsewhere. Most of the time they have been and are simply shopping around for the lowest rate. (In other words, go back to rule number one above… don’t show your hand too early). If the borrower shops behind the other loan officer, they will certainly do it to you too.

7. Explain to the borrower whether you are acting as a direct lender or broker. Each has pluses and minuses. Explain what you are and the role you play. Sell yourself. For example, you can say “As a lender, we have direct control of the process, we make the final decision and can tell you upfront whether you qualify.” or “As a broker, if you get denied by a lender, we can easily shop you to another lender, saving you time and effort. This will help you ensure you get the house you want and not jeopardize the process”. Sell your advantages…don’t mention your weaknesses.

8. Factor in all payments for the borrower, including the full principal, interest, taxes and insurance and be certain that the borrower is well aware of these entire costs upfront. If they can’t afford the house, you want to know as soon as possible. Or you’ll be left with nothing!!! I always say, it’s best early on to kill ‘em or keep ‘em. Don’t let timewasters run away with your income.

9. Watch critical dates, especially rate lock expirations and underwriting turn-times. Be well aware of the “commitment letter” date as stated in the purchase and sales contract on the property. Oftentimes, borrowers wait until far too late in the process before deciding to move ahead and these contract deadlines can be impossible to meet. Get an extension on this ASAP with the seller’s agent on the property.

10. Finesse your way through the process. Don’t lie. Only tell each individual party involved in the process what they need to know. Don’t share too much information…it creates confusion. And don’t tell someone something unless you are absolutely certain. It always comes back to bite you in the rear!

11. Stop the shopping. Make the borrower understand that once they decide to move ahead with the process, they risk losing the home, if they decide to leave you. Another broker/lender will be unable to meet the tight deadlines in the contract. They have to make a decision and stick to it.

12. Stop the shopping—part two. If the borrower is qualifying for a home based on a special program that your company is offering, tell them the criteria upfront. Not every loan officer has what you can offer. In other words, you have a specialized program and are making an “exception” just for them. Not all rates are created equal. The other “competitors” for the loan may not have all the correct information upfront, to be able to properly quote them an accurate interest rate. Let me emphasize that again—an ACCURATE INTEREST RATE. Educate the borrower on this, show them you’ve done your homework, and are quoting accurately. Ask qualifying questions that others don’t.

By keeping these tips in mind, it should make your next purchase loan go a lot smoother.

If you are looking for a firm step-by-step process to help you get your purchase loans to the table faster, please…please…please…take a minute to read about my Sink or Swim Loan Closing System at http://www.loanclosingsystem.com

And, as always, best of luck in your business. This is STILL a wonderful industry to be in! Stop being discouraged and go get ‘em!!! I know it’s tougher out there, but you can do it!

In this crazy real estate market that we are in here in Oahu, Hawaii, we are noticing some interesting changes. Days on market, has been stretching out, prices have been continuting to drop, rents have been plummeting, sellers have beenscratching thier heads, all wondering what will happen?

So, what is the answer for these people? For most, their Realtors tell them to continually drop the price until a buyer comes alongbut, is this the best solution? If you think about it, more often that not, price is not the issue. It is simply a matter that most people cannot obtain loans with the shakeout in the lending industry.

There is hope through the black clouds, IBuyHousesHawaii.com has emerged as the only, real source in Honolulu, Hawaii in purchasing houses throughout the state of Hawaii. Apparently, they can buy property regardless of the condition,even if the current owners owe more on thier current mortgage than the property is worth. Their “Hawaii Seller’s Assistance Program” has been designed to offer amazingly creative options for owner’s that wish to sell their property in Hawaii, no matter what the situation.

The owner of the company was recently quoted saying, “Just last week, we bought a property for $376,000, that is actually worth $219,000 in our current market here in Hawaii. Sounds crazy, doesn’t it? The fact is we can either buy property with the seller’s terms and our price, or our terms and the seller’s price.It really is that simple. We create a win-win situation that everyone is happy with, and pride ourselves on servingour community since this is where we live and we care.”

The company, IBuyHousesHawaii.com currently has the capacity to buy 9 houses each month in Honolulu county, Hawaii. Maybe you have a property that has not sold with a Realtor, maybe the mortgage is adjusting, or it is too much to payor maybe you just want to sell quickly for whatever reason.

One thing is for sure, the market here in Hawaii is not changing anytime soon. If you are a homeowner looking to sell your house, the question is: What are YOU going to do about it. We suggest youcontact the company above to see if they can help you with your property.

To buy a property without mortgage is out of question in today’s scenario and if a person files for bankruptcy then the chances of his buying a new home or refinancing his existing property are very limited. However with some extra expense they do get a chance to buy house or refinance their existing property. Due to the increasing cases of bankruptcy each year and the ever increasing demand of own house different options have come up.

While applying for mortgage loan in case of bankruptcy one must understand that his chances of getting a mortgage are very less as most of the banks, credit union or even individual money lenders will scrutinize the repayment option by the individual from all prospects. That does not mean that after bankruptcy you cannot buy your own house with a mortgage loan.

Apart from analyzing your existing monetary situation and your credit report in the past in case of bankruptcy the lenders will also investigate the period spent after the bankruptcy file was discharged. It is always suggested to apply for a fresh loan after a minimum of two years of bankruptcy file discharge. This will provide you some time to work on your credits and save some money for down payment. Start by repaying smaller loans like in credit cards to makeup your credit report. Also large down payment will also save you money on loan interest.

With higher interest rates or larger down payment for purchase of the house you can be eligible for sub prime loans also. But you need to have a very stable and high income for being eligible for this option.  Most of the time after considering the time spent is more between declaration of bankruptcy and mortgage application and the current financial status these loans are approved.

Applying for FHA (Federal Housing Administration) mortgage loan is considered another good option for purchasing home in case of bankruptcy. In this case the Federal government guarantees the pay back of loan to the bank or lender in case you fall short to repay the loan amount. This way the lender money is safe with the applicant. Also large down payment unlike other mortgage loans is not necessary here to approve loans.

Owner financing is another alternative for buying a house in case of bankruptcy. Here the owner acts as a lender and funds some portion of the total amount of transaction to the buyer. Mostly this scheme of financing is approved when the bankrupt individual has a big down payment against the purchase of the property. Also it is profitable for the owner under this scheme as apart from the transaction money he also earns interest on the loan given to the buyer and gets tax rebate too.

All these opportunity undoubtedly specifies that it is quite likely to buy a house even in case of bankruptcy but with an extra expense in contrast to normal buyer. So if you have spent some time after declaration of bankruptcy and saved big amount as down payment along with a stable and higher monthly earnings then you can easily start your movements towards buying your dream house with any one of the opportunities mentioned above.

We Buy Charlotte North Carolina Home’s On The Spot!!!

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What are we looking for? We buy single family houses in all types of neighborhoods in and around Mecklenburg County North Carolina. New or old, big or small, wood or brick we buy them all. We buy houses in and around Charlotte North Carolina, in any area, any condition and in any price range. If it shows like a model home, we’ll buy your house. If your house has been seriously neglected, that’s OK, we’ll buy your house too. If your house is beet down nasty and ugly, or fire, water or wind damaged, we’ll buy your house today, on the spot! Repairs are no problem. We can buy your Charlotte North Carolina house “as-is” and you can move on the day of your choice. Buying homes is our business. We are not real estate agents who want to list and sell your house. We are professional house buyers who want to buy your Charlotte North Carolina house and we are willing to make you one or more offers to buy your home quickly.

Sell your home On The Spot Fast!! To sell your Charlotte area home fast, or to sell your North Carolina home quickly, please complete our Seller Questionnaire. Tell us all about your home for sale. Let us know how we can reach you and one of our knowledgeable house buyers will contact you ASAP about buying your house fast.

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We Buy Charlotte North Carolina Homes. Please visit our website and tell us about your home so we can make you and offer. Please be sure to bookmark our website so you know where to find us in the future. We also have an entire Florida division where we buy Florida Homes. We also buy homes and land nationwide