That question brought someone to the site. The answer is “Yes, they can”. As a matter of fact, just because they have you sign those documents does not in any way obligate that lender to actually fund your loan. There are two sections of conditions on every loan commitment. The loan commitment is what the …
Continue reading “Can a Lender Legally Stop Loan Funding After Signing?”
One of the most useless and overworked items in the real estate industry today is the pre-qualification for a loan. Sellers want buyers to be “pre-qualified”, and buyers are seeking “pre-qualification” to convince buyers they are serious. The level of work done for a pre-qualification varies. In some rare instances, the loan officer doing the …
From an email: I was wondering if you could tell me whether the following ways to save on interest are actually possible. If they are what are the penalties typically associated with these suggestions. I know you have mentioned a pre-payment penalty but what amount is reasonable? 1) Pay a certain amount over your monthly …
Continue reading “Prepayment Penalties and Biweekly Payment Schemes”
I went out previewing properties a couple days ago. That particular client’s situation being what it is, I was concentrating on vacant properties. But over half the vacant properties in that area had restricted showing instructions. “Call agent first,” or “call for appointment to see.” When the property is vacant, there just aren’t any common …
Continue reading “Listing Agents Who Want Both Halves of The Commission”
I am seeking to sell my properties to my tenants. I want to create a mortgage and then sell the mortgages. Properties are undervalued in this area as they have been historically fixer-uppers. Ours are in very good condition due to major renovations. This would interfere with a regular mortgage, but temporarily holding one might …
Continue reading “Sellers Lending to Buyers and Selling the Note”
In all of my conversations on mortgages with prospects, there is one subject that comes up over and over and over again, and that is the subject of payment. “But that loan over there only has a payment of $1450! The payment you are quoting is $2700! The other guy has a better loan!” Then …
Continue reading “Never Choose A Loan (or a House) Based Upon Payment”
“Should People in their sixties take out a mortgage?” The short answer is “Not if you don’t have to.” Now if I suddenly vanish, the explanation will be that the loan industry put a contract out on me. Success in loans, and sales in general, is often attributable to selling people stuff they don’t need. …
Continue reading “Mortgages and Reverse Mortgages (RAMs) after Retirement”
I’ve said upon more than one occasion that the factors at closing are all in the loan provider’s favor. Unless they signed up for multiple loans, the typical consumer has no leverage to get the loan provider to play it straight at closing, and actually deliver what they said they would back when you signed …
Supply and Demand. Now that I’ve given the short answer, it’s time to explain the macro factors behind interest rate variations. But I’m going to keep referring to those first three words. It is a tradeoff between the supply of money and demand for it. The most obvious thing influencing loan rates is inflation. This …
If you’ve been around the financial planning business any length of time, you’ve likely run into the saying “The biggest risk is not taking one.” It is endemic to all financial instruments, indeed, all investments, that return is the reward for risk. It is axiomatic that the entity that takes risks gets the rewards. Generic …
