After being in the loan business for 20 years I came to learn one thing...NEVER lock a rate on a friday! Why? Because rates always came back down by Tuesday of the following week. Unless you could guarantee that you were closing within the next 10 days it made no sense. Rate locks come in periods of 10/15/30/45 and 60 days. The shorter your lock period, the better the rate.
It's different for commercial loans because they don't change their rates on a daily basis like residential mortgage rates do. Commercial loan rates are usually good from the time you apply until the time you close on your loan. Commercial loans are also sold and serviced differently than residential loans so there is not as much fluctuation in that market.
So the next time you talk to your banker/lender/mortgage broker, ask them what their rates are on a friday, then call them on monday or tuesday. You might be surprised at where the rates are.
Follow Marc Dube's blog for tips on local real estate and lending.
Wednesday, January 25, 2012
Monday, January 16, 2012
So much real estate...so little funding?
If you are like most investors out there right now, you have spotted some great deals and run the numbers and everything looks great. But why can't you get finannced? There could be several reasons, including the following:
1. Your numbers aren't realistic to your lender
2. Property type is not able to be financed ( Dome house, houseboat or crack house)
3. You don't have the right lender chosen!
Assuming you know what you are doing, #1 AND #2 should not be a problem. So it can only be #3! You have the wrong lender!!!
If you have done your homework before buying the property you should already know where your financing is coming from. If not, then you may be asking for trouble. Don't think that because you are buying a 1-4 unit property that you can walk into a regular bank or mortgage company and walk out with a FNMA loan...I have had numerous clients lose the deal because they underestimated their downpayment or even the terms of financing they would be able to get.
Buyers should be aware of several things before looking for financing:
How many properties do you currently own? *If it is more than 4 then you can forget about FNMA financing because you have already reached your limit! FHA financing? Not on an investment property!! What about repairs/rehab? All of these factors can affect what you end up with for loan terms and where you can actually get them financed...
Stay tuned to my blog when I share with you the best places to find financing for your investment purchases!
:)
1. Your numbers aren't realistic to your lender
2. Property type is not able to be financed ( Dome house, houseboat or crack house)
3. You don't have the right lender chosen!
Assuming you know what you are doing, #1 AND #2 should not be a problem. So it can only be #3! You have the wrong lender!!!
If you have done your homework before buying the property you should already know where your financing is coming from. If not, then you may be asking for trouble. Don't think that because you are buying a 1-4 unit property that you can walk into a regular bank or mortgage company and walk out with a FNMA loan...I have had numerous clients lose the deal because they underestimated their downpayment or even the terms of financing they would be able to get.
Buyers should be aware of several things before looking for financing:
How many properties do you currently own? *If it is more than 4 then you can forget about FNMA financing because you have already reached your limit! FHA financing? Not on an investment property!! What about repairs/rehab? All of these factors can affect what you end up with for loan terms and where you can actually get them financed...
Stay tuned to my blog when I share with you the best places to find financing for your investment purchases!
:)
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