Best Home Loan Program
Over the last years I’ve got this question from so many buyers both new home buyers and veteran homebuyers and that is what is the best home loan program so that’s what I’m gonna address in this article.
What is the best home loan program I get that quite a bit and I still do as a real estate agent used to get it a lot more when I was a mortgage banker but everybody wants to know that and I know this may be a little disappointing for some people reading this article but there isn’t a loan program that’s one size fits all.
Now when I first started off in lending I thought it was actually very very easy to get home loan program and help people and the reason is because a lot of home loan program officers were very complacent what happens is the buyer calls the loan officer and ask them what’s your interest rate and the home loan program officer automatically defaults into a 30-year fixed loan they don’t talk about any other home loan program or ask questions the buyer says thank you to hang up in the story well what I started doing was when people would call me up and they would say what’s your interest rate.
I would ask them some questions the two main questions that I want to know is how long are you gonna plan on living in the home and how long are you gonna plan on owning in the home owning the home so in other words are you gonna live in it for so many years and then just sell it or are you gonna live in the home for so many years and then rent it out make it a rental property and then buy another one because everything depends on how long you’re gonna live in the home.
I had a lot of people that would call up they would ask the question I would say how long are you gonna live in your home and I was in California when I very first started and a lot of military bases around and they said well a lot of them were well we’re gonna probably live in there three maybe four years because then we’re gonna probably get stationed somewhere else or maybe they were relocating and I wouldn’t put him on a 30-year fixed mortgage what I would do is I would explain the advantages of different programs with them and a lot of times what I would end up doing was putting them on a five or a seven year reset program and no one really even knew what these were but what they are is where the interest rate is based off of a 30-year it’s amortized over 30 years it’s fixed for five years or seven years depending on which one you take.
It’s a lower interest rate than what you’re going to see on a regular thirty-year mortgage but after the five years or seven years are up it converts into an adjustable rate mortgage which they didn’t want but if they’re not going to be in the home why pay the interest rate of a 30-year or maybe a
Best Home Loan Program
situation they would come up and that they would say well I mean what we’re gonna do is we’re probably going to live in the home two years and then we’re just gonna rent the property out we’re gonna buy another property and I’ll ask them well how long you planning on keeping it and a lot of times they would just say well forever or which could mean 15 years 30 years who knows so I would go over it and they I would go over different programs with them and a lot of times they people wanted to leverage their money so they wanted to go with say an FHA home loan program that’s a less downpayment.
I would explain to him if you go with the FHA home loan program though that’s a great program you’re never going to get rid of the mortgage insurance the only way to get rid of the mortgage insurance is refinance your home and you know no on refinancing I’ll put a article before you even think of refinancing so they would usually say well I don’t think that’s such a good option and then I would explain to him the advantages of a conventional loan and once they hit that 20% threshold they could go ahead and get the mortgage insurance off so my job as a lender even my job as a Realtor right now it’s not to tell people what to do but it’s to explain all the options for them to them and to let them make a wise choice for them and their family so that there’s really no one-size fixed fits all you have to get what the lender.
Or if you’re looking at real estate a realtor but if you’re looking for a home loan program get with the lender who knows what they’re doing someone who’s going to ask a lot of questions because we’re in a really busy market right now and I find a lot of lenders are very complacent they’re just like blown and going picking up the telephone and they’re not really too concerned with individual.
