How to Choose the Right Lender for Your Home

Hey Danny Barker here I'm a real estate agent not a lender But what I'm going to talk to you about today is how to shop for a lender There's 3 things that you want in your lender You want them to be accessible at all times You want them to give you the best product at the best price If you can get those 3 things the only thing left is do they perform as they promise There's a lot of lenders that make bad promises There's a lot of lenders that will tell you that they have the best price in the 9th hour the last week of escrow they drop the bomb on you an extra one two and three percent of closing costs from them right There's a way to work with your realtor and your lender to Figure out where those hidden costs are gonna come from so you can avoid them And if somebody tries to work in hidden costs with you or for you to pay you should walk away Are they giving you the best rate There's a par sheet We're gonna bring up the par sheet here in a minute but the par sheet is gonna tell you what rate they're gonna give you and what credits they're gonna apply to your closing costs for that rate or how much they would expect that you pay extra out of pocket for those closing costs And then are they accessible Best way to test it is to send them a text message at 9 o'clock on a Friday night and see when they get back to you If they get back to you right away then you have the best scenario possible If they get back to you on Saturday then you have a good scenario right If they get back to you on Monday walk away Find another realtor find another lender I mean And shit realtor too if the realtor himself isn't answering you right away So accessible best product best price and they're going to deliver what they promise right Now let's bring up the parsheet This is just an example parsheet here As you can see the very very left is the rate and then you have APR price discount discount lender fees principal and interest which is P&I and then total payment Right This is not factoring in taxes and insurance which we'll have to factor in with your realtor They're the ones that would know best on that Now If you go back to the rate the first column 1 25 is in bold and what it's saying is that it's going to pay 0 4 1 7percent of the loan amount This loan amount is around five hundred thousand dollars so what the bank is saying is if this member if this borrower takes the interest rate of 6 1 2 5 They would pay that borrower 22 hundred and 58 dollars towards their closing costs which is pretty nice right The next rate down from that well it's really up on this list but down in interest rate is 6 00 They're asking that the borrower pay five hundred and 96 extra in closing costs to get that to get that difference So what the difference between those 2 is is you're looking at about 28 hundred dollars Right And if you go over to the payment all the way to the right you're looking at a 44 dollar per month difference So simple math would tell us that 28 hundred dollars divided by 44 dollars per month is 63 months So they already in taking the 6 1 25 percent interest rate they have already Awarded you with 63 months worth of the benefit Now here's the thing There's the VA EARL interest rate reduction refinance loan That EARL is able to be done after you've made your 6th payment So what does that mean I close today in November of 20 24 I make my first payment not December but January of 20 25 Right So January February March April May June Once I've made my June payment now I'm eligible for a refinance in the VA world Now I can say hey interest rates in this last 6 months because of X and Z whatever let's not get political but interest rates went down now I can refinance into this new loan If you're not disabled if you're not a disabled vet yet then what that means is it's 5 percent 5 percent is your funding fee See when you used your VA loan it was 2 point something percent For your first time 3 point something percent for your subsequent times right So instead of paying the 2 or the 3 percent in fees VA understands you already got a VA loan so we're just refinancing this one into a new one So now it's 0 5 percent right So now let's say interest rates are at five and a half percent so 5 5 percent and it's the same There's going to be a part sheet for that day too because the part sheet changes 2 4 times a day sometimes right So the new part sheet you're going to look at is going to have similar information So maybe we'll just roll this bread up and say at that time 6 months from now The the the par rate is 5 5 percent instead of 6 1 25 percent Now you're going to have your payment go down to 3074 instead of three thousand two hundred and ninety Right So now you have a lower interest rate you have a lower payment and some argue you're gonna have a higher uh owed amount But this is when we affect the trifecta What we do is we coach you to say hey you had An impound account with your last mortgage company