Fha Maximum Mortgage Worksheet Cash Out: Fill & Download for Free

Sure.First, you should be aware that loan officers are primarily salespeople. They earn commissions (or bonuses) on every loan they fund.This is not at all a bad thing—this is how I have earned my living for three decades. But it is helpful to know that a loan officer will do his or her best to convince you to start an application with them. They’ll tell you that to give you an accurate rate quote, they’ll have to get an application and pull your credit.This can make shopping for a loan somewhat time-consuming and cumbersome.I can tell you how to avoid that hassle, but before I give you the details, I’d like to let you know that getting a mortgage is a process, not a commodity. The person who handles your mortgage transaction, whether for a purchase or refinance, is the single most important component of your process. An out-of-state lender with no physical brick-and-mortar presence may have rates incrementally lower than those for local lenders, but if they can’t close your loan in a reasonable time, the lower rate is moot.There is one other thing you should know about how lenders determine what rate a borrower will get. They consult that day’s rate sheet and apply certain adjustments to the pricing appearing there. This is true for every lender, with no exceptions.They will adjust for the following factors:Credit score and loan to value ratio. A score of 740 will get the best rate. Having a score higher than that will not bring a lower rateThe loan purpose. A cash-out refinance will carry a higher rate than a purchase loan or a refinance where you do not take cash outThe type of property. A condominium or multi-unit building will have a higher rate than a single-family home or townhome (PUD)The loan amount and type. A loan for more than $510,400 in high-cost areas will carry a slightly higher rate because it is a “high balance” loan. In the pricey San Francisco Bay Area, for example, the maximum conforming loan amount is $765,600. Its rate will be about .25% higher than for a loan of $510,400 or lessThe type of loan. Rates for VA and FHA loans have lower rates than those for conventional loansNow that you have a bit more knowledge about how lenders price loans, you can prepare to call lenders.You should know your credit score, the price of the property you’re considering, the type of property and the type of loan.Now that you’ve gathered that information, you can start calling lenders. Your conversation will go something like this: “I am looking for a 30-year fixed-rate conventional loan to buy a $400,000 single-family house. I’ll make a 10% down payment. My credit score is above 740. What is your rate today with no discount points?” Asking your question in this way eliminates the normal variables, so the lender should be able to give you an accurate quote for that day.Protip: Don’t ask for a “good faith estimate.” This document no longer exists. It has been replaced by the Loan Estimate, but not all lenders will prepare this legal document without having a full application. What you can ask for is a “closing cost worksheet.” This will list all the fees and costs with reasonable accuracy without causing the lender to create a full application.Gather your rate quotes over as short a time as possible. Rates change a bit every day, but we have been experiencing unprecedented volatility in the credit markets recently (February-March 2020). We have seen rates swing up and down by as much as .375%-.625% from one day to the next. One friend of mine, a bond analyst whose newsletter I receive every day, told me this is the most volatility he has seen in 50 years. The rate quote you get today may be meaningless tomorrow.Finally, you should incorporate a subjective factor into your search for a mortgage. The skill and experience of your loan officer do make a difference. Simply being an accomplished and persuasive salesperson is no longer sufficient. Find a mortgage professional who answers your questions in a forthright manner and who inspires confidence.I hope this is helpful.