So I found this nice lot on Lake Michigan. Ain’t cheep. Wanna build a timberframe on it in about 4 to 5 years for a partial retirement place. I wanna finance a portion of the price with the intention of full payment by the time construction rolls around.
I wanna finance it now because the other assets are earning far more than the interest rate would be. And the FICO score is somewhere north of 800.
I have found 3 banks willing to negotiate rates and fees. Some are being rather aggressive for a piece of the action, despite the turmoil in the mortgage market. I’ver already eliminated two others from consideration since they weren’t as flexible.
So my question is:
Can I apply for the loan with two different banks with the final decision being made when they actually make the final committment? I know these guys play with numbers (especially as rates are under pressure) to make things sound nice up front, but when the ink is about to hit the paper, some small print or “market conditions” emerge to change things. If I got a back up, I would think it’s less likely for such surprises.
So you mortgage brokers, can I play games in return?
Replies
You can apply for as many loans as you like, and pick the one you like. You should be able to get a good picture of interest rates and other loan fees long before you actually apply. The majority of lenders will not allow you to lock a rate until after you have been approved.
The Mortgage problems are limited to people with questionable credit, work and distorted Loan to Value ratio's. If you have a solid credit and work history and the Loan to Value ratio is good, you should have no problem.
If you do apply for more than one loan you might incur various fees not to mention appraisal fees of the property. You should apply for the loans all within a very short period,so all the credit inquires will be treated as one, otherwise each of the individual credit inquires will all take a small nibble out of your credit rating.
If you think the credit crisis only affects marginal borrowers, you need to follow along a little better.ALL jumbo loans have seriously increased rates in the last few weeks, and the general liquidity crisis will affect everyone.That said, hell yeah the original poster should play hardball with lenders. Make 'em fight for your business, many individual loan originators are fighting for their jobs right now.
This ain't no subprime issue, and it is a "Jumbo."
But I am flabbergasted by what some of these guys are trying to get away with in this market. If they want some good paper in their portfolio, they gotta make it worth my while...
If the mortgage guy isn't able to take it to the president of his bank for approval, I don't think I'm pushing enuff.
People with jumbo loans are no better candidates than the marginal buyers that he was talking about. Infact, Jumbos often have much worse LTV's than regular conventional loans. Just becasue an applicant qualifies for more of a loan doesn't make them a better customer. In my opinion it's not the people who borrowed the money that have created the problems, it's the lenders them selves. Most of the big companies are still doing fine, and so are the small banks who don't rely on mortgages.