Selecting the Right Lender

Picking the right lender will affect both the strength of your offer and how much you end up paying for the house. According to the CFPB, 47% of homebuyers do not shop for mortgages, which is a costly mistake.  Definitely get quotes from different lenders and compare.  You can also negotiate with your lender on the rate.  When comparing different lenders, below is a simple framework I use with 1-4 being the most important:
  1. Interest Rate: this is the rate that you'll be paying every month to 'borrow' the money and what you write off on your taxes.
  2. APR: this rate includes all fees such as closing cost, points, loan origination fees, etc, on top of the interest rate. This is a more accurate rate to compare than interest rates alone.
  3. Relationship Discounts: most lenders will reduce your interest rate if you bring a certain amount of money over to their bank e.g. transfer $250K in savings/401K/stocks will reduce your rate by 0.125%.
  4. Time to Close: how long will it take your lender to finish processing your loans and get the documents to escrow.  Ask for time to close with and without credit approval (see below). The faster it takes, the more attractive your offer is.
    • Credit Approval/Underwriting speed: this is the time it takes for the lender to approve you as the person if you have not found your house yet. 
  5. Lender Credits: lenders will give you credit towards closing which will cover the cost of certain things like float down fees if any. This can be a significant amount of reduction if you have the assets.
  6. Float down fee: if the rates change during underwriting, this is the cost to lock-in the rate at the lower rate. I'd multiply this by the chance you think it'll actually change during underwriting e.g. if rates are not volatile, then this is insignificant.   
  7. Table Funding: most lenders table fund. If you are using a smaller institution, I'd ask this question. It can be skipped if using a large lender like Wells Fargo or Bank of America.  This can save you up to 3 days for closing.
If you are buying a TIC in San Francisco, your lender options are limited to local credit unions but the same framework applies.


  1. Join Betway Casino to Get a 100% Welcome Bonus
    Betway Casino クイーンカジノ is one of the top 1XBET online casinos in India with a history betway login that covers the top online gambling sites. It is an

  2. This means for each dollar you deposit or play with, you receive a fraction of that as bonus funds. Casino bonuses additionally normally carry wagering requirements. You must clear these before find a way to|you probably can} withdraw your winnings from the on line casino. If a web-based on line casino presents you risk-free money or a risk-free day, it means could get} a refund on any losses you incur. There are, after all, wagering requirements, which implies there are limits to the sum of money find a way to|you probably can} receive. However, the overall premise with cashback bonuses is you are going to|that you will} receive a rebate when you have have} a internet loss enjoying in} actual money games.

  3. The bottom of the case is a movable shutter that's related to a 1xbet metallic linkage, as find a way to|you probably can} see in the diagram. But when the machine hits the jackpot, the third stopper shifts the linkage up, opening the shutter so the coins fall out of the machine. In short, the regulations allowing "stock", "renchan", and tenjō remodeled the pachisuro from a low-stakes type of entertainment just some years back to hardcore playing. Many individuals may be be} playing more than they can afford, and the massive payouts additionally lure unsavory "hyena" sorts into the playing halls. Or pachislot from the words "pachinko" and "slot machine", are a descendant of the normal Japanese pachinko recreation.


Post a Comment

Popular posts from this blog

'Ready to Offer' Checklist

Disclosures Cheat Sheet