Before you ask what is the RATE? (edit/delete)
What is the Rate should be the least of your concerns first concern should be if you even qualify.
Whether you are a new home buyer or refinancing your home your first concern should be who you choose to do the loan for you. The times where you could deal with (1-800 give me a loan) with out any problems will not be so easy any more. New laws on the disclosures are going to make this more of a relationship business. It has always been a relationship business but there have been many fly by night companies that popped up and left, as well as individual that were only in it for the money and not their career of choice. The reality is when you deal with someone that is in the industry as their career of choice vs someone that is only part time and doing it only so often makes it very difficult for that person to be up to date with all the changes that are taking place. Changes that can kill your transaction from ever closing, on the most important investment decision that you may ever make.
Asking what is the rate is basically having the mentality that one size fits all which could not be further from the truth. Without knowing anything about the transaction or the client’s credit history the rate can be whatever you want it to be, but whether you get that rate is a different matter. The rate that is quoted on T.V. or in the Newpapers for all intent and purposes is really a teaser rate and to create some interest or even a a baseline for what the best of clients may qualify for but not neccessarily you. So if you are looking at homes in Santa Maria to buy or a Central Coast home here are some steps that your lender has to consider in helping you determin what the rate may end up as- 1) credit score- this is probably the first and most important factor of all I have had many people with plenty of income to qualify but I could do nothing based off of their credit scoret. 2) type of transaction- is this an investment, primary, second home etc. 3) the loan amount- yes the loan amount for a loan can change the rate jumbo loans and conforming loans are not created equal. 4) The Loan To Value of the transaction- basically how much equity is in the property when doing the transaction the more the better. 5) the property type-this is huge a single family home will get a better rate than most condos and a modular home will not get the same as a single family home as well as a home with too much acreage. 6) and even the extenuating circumstances regarding the details of the transaction- this is where sometimes what we call are letters of explaination as to job history or medical collection accounts no the credit or a number of things all the other stuff that does not fit in your normal day to day. Taking all this information into account its easy now to see why asking what is the rate FIRST should be the last thing you ask.
First find out who you want to work with in handling your financing. Second find out if you QUALIFY? Third if you qualify when and is it possible to close because just because you qualify today with new guidelines you may not qualify tomorrow. LAST BUT NOT LEAST IS WHAT IS THE RATE GOING TO BE of course you want to know what is this going to cost you, but your loan officer needs to get all the information first and foremost.
Please help me out in giving you the information that you may be interested. If there is a topic that you are curious about need more clarification let me know.
Thank you
If you want to search for any homes for sale in Santa Maria or the Central Coast you might want to buy just go to www.GenePerez.net.
If you have any questions about this article or buying a Santa Maria home for sale or any properties on the Central Coast or need to get a loan in Santa Maria, CA or on the Central Coast as well as other real estate related questions please contact me by sending me an email at: GenePerez@GMSLoans.net
my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better information please let me know. I have been helping my clients for the last 15 years on the Central Coast, Gene Perez, Ph. 805.448.7101, Fax, 805.352.1109 – DRE 01321588
