Shopping for Mortage

[The Bad Guy]

Originally Posted by Bill Lundberg

That's weird, I replied to you on 2/22/2011. Anywho, here was my response.



As for my reign as Planet mortgage guy, it's over. I closed my last loan yesterday and am officially out of the mortgage business. Things have changed so much that I don't care to be involved with it another day after 12 years. It's a bittersweet end. I used to take great pride in helping people save money or buy the home they've always wanted. Banks and the government have made it such a ****ing pain in the ass that customers don't appreciate the lengths we have to go to in order to get a loan completed these days and quite frankly I don't blame them.

If I were in your situation I would ask the builder to carry the construction loan and just take care of the end loan once the house is completed. It may be hard to do in today's market, but it will protect you from someone walking in the middle of a build job. Most reputable builders have access to a line of credit that will allow them to carry the note until completion.

Thanks Bill.

I did get a response on that, but tried today and it wouldn't go through.

I'm not real worried about people walking in the middle because the people I'm using are people my father in law has built 5 houses with and are close friends of his.

Good luck to you in your future endeavors.

[Bill Lundberg]

Originally Posted by The Bad Guy

Thanks Bill.

I did get a response on that, but tried today and it wouldn't go through.

I'm not real worried about people walking in the middle because the people I'm using are people my father in law has built 5 houses with and are close friends of his.

Good luck to you in your future endeavors.

Thanks. Not sure why it didn't go through, but I just deleted a bunch of PM's maybe that will help.

As for the construction loan I would still try and get the builder to carry it; even if you trust him you won't have to start paying interest on something you can't live in.

You're going to get two options from everyone you talk to. A Lender paid option which will consist of a higher interest rate and lower closing costs and a consumer paid option which should get you the lowest interest rate (that said company offers) and slightly higher closing costs. Once you get both quotes let me know and I can show you the numbers on each so you can decide which one is right for your situation. The LO you talk to should do the same, but if you want me to check them to be sure they covered everything I would be more than happy to do so.

[The Bad Guy]

Originally Posted by Bill Lundberg

Thanks. Not sure why it didn't go through, but I just deleted a bunch of PM's maybe that will help.

As for the construction loan I would still try and get the builder to carry it; even if you trust him you won't have to start paying interest on something you can't live in.

You're going to get two options from everyone you talk to. A Lender paid option which will consist of a higher interest rate and lower closing costs and a consumer paid option which should get you the lowest interest rate (that said company offers) and slightly higher closing costs. Once you get both quotes let me know and I can show you the numbers on each so you can decide which one is right for your situation. The LO you talk to should do the same, but if you want me to check them to be sure they covered everything I would be more than happy to do so.

You are the man Lundberg. I will definitely do that.

Since we were rolling the land into our loan, I think the bank might be the only way to go, this way we can have a sizeable downpayment, which would allow us to use some cash to pay down student loans.

The interest payment should be around 200 a month so that shouldn't be a problem at all.

[Saul Good]

Originally Posted by Bill Lundberg

TYou're going to get two options from everyone you talk to. A Lender paid option which will consist of a higher interest rate and lower closing costs and a consumer paid option which should get you the lowest interest rate (that said company offers) and slightly higher closing costs.

Until recently, the lender paid option was usually crap, but that isn't the case anymore. I refinanced about 6 months ago with no closing costs, and it only cost me a quarter of a point (maybe even an eighth). I wound up with 4.375% for 30 years and nothing out of pocket other than the appraisal which was $300.