Five things a real estate lender won’t tell you

    This will be as fun as when I wrote the article about, “Five Things a Real Estate agent won’t tell you!”

    For the highlights and to view that SCVnest article by Connor, yours truly, click on the preceding link with the title.

    For the record – We are Real Estate agents – Realtors. We are not real estate lenders, we are not mortgage brokers and we do not loan money for people buying homes or wanting to refinance the homes they own.

    For the record – part deux – We know the best lenders in the mortgage business – From those who are mortgage brokers, direct lenders, mainline banks and credit unions. We have our clients well covered when it comes to referring to a lender who will not sell you short and who will have our real estate clientele’s best interest at heart.

    “My fee’s are too expensive – you need to find another lender…”

    “I think you should consider buying a less expensive home…”

    “Those extra taxes are too high, I’d not buy that home…”

    “Don’t worry about coming in with more money down, I’ll take care of it…”

    “I’m making extra on this deal, I’d like to credit you some money…”

    Now for the breakdown of what these mean to the general consumer or home buyer who is about to embark on the home buying or refinancing journey.

    “My fee’s are too expensive – you need to find another lender…”

    Points – Origination Fees – Percentages – typically refer to what the lender is going to charge Borrowing money to buy a homeyou to loan you money. Lenders get paid a couple of different ways. On the Front, those are what I’m referencing by points/fees, and on the back end – this typically addresses how “valuable” you are when they sell your loan.

    People in business – they are in business to make money. However, shanking someone with charges and exorbitant fees for borrowing money – that is ridiculous.

    Have the lender produce for you a Good faith estimate. While the figures on the GFE can morph and change, it will give you and your Realtor a good idea of what you are being charged and if it’s too much.

    “I think you should consider buying a less expensive home…”

    Crazy right? There are two different facets to consider when obtaining financing approval. When borrowing money, the real estate lender will “qualify” you for what you are able to borrow to use for financing.

    The way it works is they will tell you what amount would be your maximum. That amount will have you tapped out, in most cases, and your payment at that amount needs to be carefully considered.

    Remember, when financing real estate, there is more than just your mortgage payment. You need to factor in property taxes, insurance and utility bills. Also factor in HOA, homeowners association, fees and payments.

    What you qualify for is not necessarily what you are able to afford.

    “Those extra taxes are too high, I’d not buy that home…”

    This could be something that you will never hear from your Real Estate agent or your real estate lender. In either case, it’s nice when someone is “honest” with another who is buying the most expensive thing they will every buy!

    Some properties have “extra fees”. This statement is not just about extra taxes which can be called assessments or mello roos. This is applicable also to large HOA fee’s. Maybe the “upkeep” of the home is going to be very expensive. It could be that in order to move in or enjoy the home you have to dump $$$ money into it.

    What a breath of fresh air to hear what your hired expert thinks about that home you are buying!

    “Don’t worry about coming in with more money down, I’ll take care of it…”

    Believe it or not, we have some awesome lenders who may be of assistance. However, I have found this to be more of the exception than the rule.

    Sometimes when buyers are buying real estate, they are doing it by the skin of their teeth. They have “almost enough” for the down payment, but it’s not enough.

    Some lenders will see a “different” picture and be of some assistance. Some lenders are extremely creative, without putting the real estate buyer in harm’s way.

    There are programs, special incentive programs for home buyers. These are advertised within the online channels. A majority of these “special’ home buyer programs for people with bad credit, first time buyers, those who don’t have a down payment, or are low income buyers, are scams. Believe it or not, Police officers, deputy sheriffs, law enforcement, firefighters and teachers fall prey to these special programs more than anyone!

    Make sure you get everything in writing if being promised a “special deal” when buying a home. If they say they “cannot” put it in writing, they walk away!

    “I’m making extra on this deal, I’d like to credit you some money…”

    Closing Costs – fees that a real estate buyer and a real estate seller have to pay to buy or sell real estate.

    For a homebuyer, your closing costs are going to be what the seller does not or is not willing to pay for. A homebuyer’s closing costs are their lender’s fee(remember when I mentioned origination?), the homebuyer’s part of the escrow fees and the home buyer’s part of the title fee.

    Typically less than 3% of the purchase price, depending on the lender and specific property. These closing costs can be paid by check, credit card, or during the real estate transaction by the homebuyer. The buyer’s closing costs can also be included as part of their loan if that action has the seller’s blessing. A buyer’s closing costs can also be put on top of the amount offered for the seller’s home, again – the home seller has to bless this too.

    In some cases, a lender can/may help with these costs if the buyer is unable to pay them.

    Something to consider!

    Real Estate is not charity

    There are times to be of assistance in a monetary manner. It happens. We have had occurrences where our home sellers and real estate buyers needed our help and the help of the lenders whom we work with.

    The bottom line about real estate and finding a GREAT real estate lender and a better real estate agent is that they are not inflexible. They can bend like green tree to be of the best assistance with your real estate goals.

    I have had real estate lenders and real estate agents take the hard stance when it came to something the home buyer and or home seller needed. Causing the entire transaction to fall apart and losing the client in the long run.

    I’m Connor T. MacIvor and I’m very glad to be of assistance with your real estate representation needs in the Santa Clarita Valley and Beyond.

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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. SCVnest.com/blog is where you will find over 10,000 real estate articles. Go to SCVnest.com/radio to listen to their latest real estate radio broadcast.

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