When the home inspection is done and the buyer is satisfied with the report, then the buyer is ready to sign the contract. If a problem is found during the inspection, most likely they need another negotiation to either lower the price or fix the problem. Once this is settled and the contract is signed by both parties, then it is time to shop for a mortgage. The bank sometimes does not want to start the paperwork until the contract is signed.

Our office, Century 21-Laffey Associates work with an in-house mortgage broker, First Allied Mortgage Bankers. However, most buyers are comfortable with their own mortgage broker, but I suggest getting another mortgage broker so you can get a comparison on mortgage rates. Using a mortgage broker is a better choice than going to the bank directly because a mortgage broker shops around for the best deal for you and usually they have contacts with several financial institutions. Today, our broker from First Allied Mortgage quoted the following rates. Please note these rates are based on borrower's qualification and change daily but maybe used as a reference point.

Conforming Loans ($417,000 and less) 30 years fixed - 5.375%

Higher Conforming loans (Between $417,000 and $729,000) - 5.625%

Jumbo Loans $729,000 up to 1 million - 6.125%

ARM 5 years - 4.75%

Working with an in-house mortgage broker will facilitate the process since we can control the transaction and expedite the mortgage commitment. We usually make the suggestion to the buyer to at least speak to our in-house mortgage broker but there is no obligation to use them. I had one customer who insists on using her bank because she does a lot of business with them. However after waiting and waiting for the commitment for several weeks, I found out the bank denied her application. We had to use a mortgage broker to find a mortgage in a hurry because time is of the essence to close.

Nowadays, there are more programs out there but the bank is so strict on disclosure and it takes so much paperwork that we suggest that the buyer talks to our in-house mortgage broker so we can start the process so when the contract is signed we are way ahead of the game. There is also the New Truth in Lending Act Law which took effect July 30, 2009 which can put more delays in closing time. Ask your mortgage broker for guidance.

If you are interested in selling or buying a home in Brookville, Muttontown, Oyster Bay, East Norwich, Oyster Bay Cove, Syosset, Laurel Hollow, Bayville, Centre Island and Mill Neck, please contact Rosalinda Morgan, "The Rose Lady".

Ph - 516-385-0584

Email - linda@rosalindamorgan.com

Website - www.rosalindamorgan.com

Posted by Rosalinda Morgan, "The Rose Lady", Brookville NY Real Estate Professional on 08/24/2009 10:58 PM

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