We just finished Halloween but there is something just as scary lurking in the inner-workings of conventional loans; Loan Level Pricing Adjustments. Conventional loan use risk based pricing as opposed to the FHA pass or fail system. With FHA loans you either make it or you don't. With conventional loans you might make it over the bar but it might cost you. For information on loans please contact me.
Ask me what the FHA rate is and I can tell you in 2 seconds. Ask me what the conventional rate is and I can tell you in 2 minutes. The following list will affect your conventional interest rate:
Loan to small? That will cost you.
Low credit score? That will cost you.
Subordinate financing? That will cost you.
Multiple unit properties? That will cost you.
Manufactured home? That will cost you.
Condo? That will cost you.
Want to check an extra bag? That will cost you.
Any one of these factors can raise your interest rate. If you start combining two or more factors and your interest rate can increase significantly.
AND THE WINNER OF OUR EPIC FIGHT CAN BE YOU IF YOU ARE PART OF THE SMART MONEY.
When buying a house choose a dedicated real estate professional. They will save you time and money. Find someone you trust, ask for a referral and commit to working with them. When choosing a mortgage banker; the same rules apply. We can barely keep up with the changes, so find a committed professional who is willing to listen to your story and find the best solution for your needs. Please don't go with the lowest priced lender. Your lowest priced lender can turn into the highest prices lender if all your qualification factors are not considered up front.
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