Take advantage of historic interest rates but choose your lender carefully.

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In the past, most contract purchasers would simply request rates and fees from a couple of lenders. From there, determine the “apples to apples” bottom line expense and select the least expensive route...and just like that, 30 days later the funds are waiting at the settlement table. Unless you are a 100% perfect candidate, that is no longer how it works in today's lending environment.

Are you self-employed? Are you buying a condo? Is your income 1099? Is your credit a bit shy of perfect? Has your income varied significantly over recent years? Buying new construction? If the answer is yes to one or more of these questions then it’s even more important to dig-in and better understand your lending options. To be clear, it does not mean you can’t get a loan. In fact, there are some very attractive loan opportunities in the marketplace today. It just might take a little more due diligence than if you were a straight-forward W-2 employee with perfect income, assets & credit.

National lenders, local lenders, portfolio loans, private banking…each will have their own set of loan products (conforming, non-conforming, jumbo, FHA, ARM’s etc.) and underwriting guidelines. Furthermore, these products & guidelines can and do change often. One lender can easily reject a purchaser while the next is prepared to settle without delay. The key is to find the proper match, competitive rates & fees, and most importantly…a lender that will be there successfully at the settlement table.

If you know someone who would appreciate this site, please forward it on. If you have questions about lending or need a good referral, just let me know. All the best, Michael.