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Are you overwhelmed by how to research and find a good lender or how to compare the rates and fees?
Confused by what the broker says?
Wondering if your quote is competitive or who to trust?
I’m the Mortgage Fee Coach. I help you, the borrower, find the best quality lender and the lowest rates & fees.
If you have a quote(s) from a lender(s), I help you compare it with other lenders.
Don’t have a lender? I provide suggestions.
If I find you a better quote, than I will provide the lender information.
I only get paid when I save you money and I receive nothing from any lender!
My average client has saved over $10,000 because I helped them either negotiate a better rate and fees with their current lender or directed them to a better lender.
You will have peace of mind that you received the best possible loan.
Call now to learn how I can save you $$$$, 949-484-6322
(Copyright 2013 Mortgage Fee Coach, Inc. All rights reserved. This posting or any portion hereof may not be reprinted, sold or redistributed without the written consent of Dan Stone).
New borrowers considering buying a home should be preparing years in advance. This 6 step process can save you $1,000’s, educate you on the types of loans and better prepare you for this extremely complicated process.
- Credit Score. See my blog post Sept. 26 “How to improve your credit score: Simple payment trick” and Oct. 16, “How to save 100’s to $1,000’s, 11 tips to manage your credit score”. You can do all this for free over months and years to improve your credit score, saving you $1,000’s in fees and improving your odds of becoming approved.
- Budget. Owning a home can be expensive and complicated, if you are not prepared. Keep it simple by having a budget and sticking to it, so you can save for the down payment, be prepared and afford the costs of a home. You will be glad you did so.
- Find a mortgage lender. You might think it is too early, but I suggest researching and finding the right lender now, years in advance. By finding the right lender, they can inform you of many loan programs which provide down payment assistance, lower down payment requirements, how to document your self employed income, down payment gifts from family, etc. This is my area of expertise and where I can save you $1,000’s in fees or rate.
- Down payment. Are you going to get a portion of your down payment from friends or family? If so, many lenders require the down payment to be seasoned, i.e. in your bank account for 6 months or more.
- Down payment assistance. Do you qualify for a program which helps borrowers with the down payment, such as a bond program or program offered by county, state, federal banks? For instance, some banks are offering a First-time Homebuyers down payment assistance program, providing up to $10,000. California has their own down payment assistance programs. Find a lender that has experience funding these loans, if the program is right for you.
- Loan programs. Get acquainted with the loan programs. If you research various programs, you may find that you don’t need to save as much money as you thought and could buy a home sooner than expected.
Mortgage lending is extremely complicated. That is why I started my business, to help borrowers navigate the process, find the right lender, compare and negotiate the best loan for them. I’m not a lender and do not offer loans, but direct borrowers to quality lenders. I’m paid by the borrower to help them reduce their costs as much as possible, looking out for their best interests and providing peace-of-mind through the process. If I don’t reduce your costs, I don’t get paid. My average customer has saved over $7,000 on their loan.
If you are considering buying a home and are not paying cash as many investors or foreign buyers are doing lately, it helps to level the playing field. Nowadays, sellers are deciding quickly on which offers to consider. If you have a pre-approval attached to your offer, it is much more likely to be considered. Follow these 6 steps to improve your chances of buying your dream home.
Begin by preparing your information. Gather statements of current income, including last 2 months of paystubs, last personal federal tax return, W2’s, 2 months bank statements for all borrowers and assets information. Also gather your employment history, usually last 2 years of consistent employment. If self-employed, be prepared to prove your income and projected income sustainability.
Do you know your credit score? Maybe you think you do by accessing your free annual credit report, but those reports are not the same as reports accessed by banks & lenders. For now, I suggest requesting each borrowers free annual credit report, as it is better to know any credit score and potential derogatory information. Begin resolving issues ASAP & look at my blog post How to save $100’s to $1,000’s: 11 tips to manage your credit score.
Research many lenders, click here for my blog post. Do you know the loan program you need? Did you know there are many down-payment assistance programs to help 1st time homebuyers? Cities and states also offer down-payment and assistance programs. Do these lenders have experience with these programs? Find a lender that has the program that best fits your needs. I suggest asking an impartial person, such as the Mortgage Fee Coach, if the lender is right for you. This is one of the areas I bring the most value.
After finding the right lenders, request rate and fee quotes from each of them. You will be surprised at home much their rates and fees differ. If using the Mortgage Fee Coach services, rates and fees will be compared for you in an plain format, so the least expensive option is clear. The Mortgage Fee Coach will clearly save you money in this area.
After finding the best lender, complete an application, provide copies of the required documentation, and keep the originals. Ask how long they require for pre-approval?
Be aware, due to the new government regulations, you will have to prove beyond a reasonable doubt that you have the ability to repay the loan. The underwriter will review all the information, including verifying current income and historical income from two years of consistent past employment.
Keep in contact with the lender every 3-4 days, until your loan is approved. The Loan Officer should help you feel at ease and the process is moving forward timely. They may also need additional information. Provide it as quickly as possible.
- Become pre-approved for the mortgage loan. Know the maximum loan amount for which you qualify. Pre-approvals may be valid up to 120 days, but the lender may ask for updated paystubs and other information after 60-90 days.
Finally, take the time to build a quality relationship with your lender as early in the process as possible. The earlier you start the loan approval process, build the down payment and cash reserves, resolve credit issues and document required income, the sooner you will be able to buy your home and live the American Dream.
Usually the mortgage payment is the largest monthly expense, especially in California. After we receive the loan and begin making payments, we forget there are opportunities to cut costs. With a little effort we can all reduce our expenses. This is the first in a series on how to reduce your mortgage costs.
Mortgage tips to consider:
- Refinancing when current rates are lower than your rate by .50% or more.
- Refinance from a 30 year loan into a 15 year fixed, thereby saving money on the total amount paid on your mortgage.
- Increase your credit score prior to refinancing or applying for a home loan, thereby qualifying for the best or lowest rate and fees possible.
- Compare mortgage lenders rates and fees when applying for a home loan. See my tips on a future blog.
- Pay additional money towards principal balance, thereby decreasing the total loan balance and subsequent date when balance is paid-in-full.
- Pay 1/2 payment 15 days before it is due and the remainder on the due date, which decreases the overall balance paid over time.
- Drop monthly mortgage insurance coverage(MI or PMI), if it was originally required on your loan.
- Fight property assessment valuation by the state. (This saves money on taxes)
- Shop for lower priced home owners insurance.
- Recast your mortgage payment.
- Loan modification.
Fees and guidelines vary by lender, program, loan amount, loan-to-value(LTV), credit score, state, fixed rate loan versus adjustable, etc.
Are you considering applying for a home loan, either purchasing a home or refinance?
After the financial crisis, can you trust banks and mortgage lenders?
Is the mortgage process complicated, stressful, expensive and time consuming?
Would you like help comparing lenders rates and fees, understanding the loan process, and ultimately saving money?
Would you feel better if you had someone looking out for your best interests and enabling you to have peace of mind?
I can help.
My last client saved over $750 in fees and lowered her quoted rate by .125%, or will be saving $1,853 over 5 years.
I provide a spreadsheet comparison of mortgage lenders rates and fees, suggestions on how to negotiate for a lower rate based on market conditions, and information on how to close your loan with less pain.
Contact me at: