Mortgages – Massachusetts Part 1 of 4
In this short series of articles we’ll cover Shopping then the famous Four Corners of the Loan (FICO, DTI, Reserves and LTV)
Part 1 Shopping
One of the most common requests I receive as a Mortgage Broker is “What’s you’re Best Rate? Huh? Huh?” From experience I know that a misguided shopper will be off the call within seconds of my Quote.
At this point I usually ask,
What have you got now?
Being in the business for awhile, I know better than a shopper, who has what rates and more importantly what the bottom line cost is. I can beat most but what concerns me is the fine print which a shopper may miss.
When I’ve taken classes at MCLE (Massachusetts Continuing Legal Education), and I’m no Attorney, one Instructor that especially impressed me began with: “What the Large Print giveth, the Fine Print taketh Away.
This past weekend I received a request to beat a Local Real Estate Franchise’s in-house mortgage rate. Reasonable request. No one likes to overpay and many folks brag about the great rate they “bagged!” Brings to mind the old Purina Dog Chow: My dog’s bigger than your Dog! My dog’s something else better than your dog. My new Mortgage is better than yours is… etc
The upshot of this request is that I HAD Beat that rate! but the shopper hadn’t read the fine print which stated not only the disclaimers we all need in the Mortgage industry but the requirement of 1 Point ($4170.00) THAT the Franchise in-house Lender charged. I’m not saying that the in-house Mortgage Company within a Real Estate Broker Franchise is incestuous as some imply but that it requires some study and understanding to make sure that you’ve been represented fairly. e.g. When the same Agent is “representing” the Seller and the Buyer, is that actually possible. And the same Agent is again “representing” you as a Real Estate Broker, Mortgage Agent and Insurance Agent?
OK, you’re a Shopper for Rates? (I’m a shopper also, even for gasoline;-( I’d suggest you look at a couple of rates. Check my street Creds at www.FranklinAmerican.com/MikeHurney then you can call my cell 781-405-1845 and we’ll put together the Best program and Rate for you!