Don’t choose a lender without considering these two important factors.
When choosing a lender for your home purchase, there are two important factors to consider, and today I’m joined by Michael Lassiter of Amerifirst Home Mortgage to outline each.
The first is their current turn times. This means how long it will take once you go under contract to close on the loan. This is important because a closing date is established as soon as you go under contract, and a missed closing date—which happens frequently—can cost you a lot of money.
Fannie Mae estimates that only 35% of all closings happen on schedule, and a lot of that has to do with the interest rate environment we’re currently in. Rates are low, so it’s a great time to buy, and bank staffs (especially big banks) can’t take on that capacity. We’re seeing time frames as long as 90 days for refinances. Working with a local lender who can control the process is the best way to minimize your turn times. At Amerifirst, for example, their average turn time is 19 to 20 days.
The second factor is whether or not they offer a total cost analysis to figure out your total debt structure. For example, Amerifirst does a total cost analysis for their clients that looks at their whole debt balance sheet. The average family has $10,000 to $15,000 in unsecured debt, but what if you can pay that off, free up some capital, and pay that money down? How will that impact your mortgage over time?
Knowing these things ahead of time will help you make the best decision possible for what’s likely the largest purchase of your lifetime.
As always, if you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.