Benjamin Clark - Exclusive BUYER'S AGENT - Certified Negotiation Expert - SLC, UT

Many Buyers pay 1-3% too much for their loan in up-front costs, even after "shopping" for lenders. Some choose a lender solely based on which one has the lowest up-front costs, but they end up paying for it by getting an interest rate that is higher than they qualify for. Others unnecessarily pay too much in fees in order to get the lowest interest rate.

Shopping for a loan does not have to be difficult or complicated. The key is to take control of the process, get organized, and make sure you do it right.

Here are some basics on ONE way to shop for a loan. Click each link for more information on each topic:

• Shop the lenders on the same day and at the same time
• Make sure all the lenders have the same facts
• Figure out the TOTAL Cost of the Loan^SM
  
  After many years of evaluating how lenders compete for business, we have found a good way to calculate the TOTAL cost of a loan. We do this by considering how many dollars leave your pocket at the closing table (mostly made up of fees) and how many dollars leave your pocket each month you hold the loan (mostly a factor of the rate). This is the fairest way I have found to shop lenders, and even to compare different loan types from the same lender.
  
  Homebuyer Representation, Inc. has created a program that extrapolates these figures out for the term of the loan (15 or 30 years). It can show you the total dollars that have left your pocket at any point along the way. You can see on a graph that the best lender in the short term (lowest fees) is not always the best lender in the long run (often the one with the lowest rate.) They often cross paths along the way.
  
  What our system does is it allows you to see where this transition takes place (if it does). Graphing out the TOTAL cost of each loan option gives you the ability to make the best educated decision regarding which loan to choose.
  
  If you know you will only hold the loan for 2-3 years, it may actually cost you less if you choose a lender whose rate is a bit higher, but whose fees are substantially lower than another lender's offering. If you believe you will hold the loan for potentially a longer length of time, a lender who costs a bit more up front, but offers a lower interest rate, may cost you the least amount of money by the time you will be likely to either sell the home or refinance the loan.
  
  The problem with just judging a loan by the APR is that it doesn't allow you to understand which loan is really going to cost you the least amount of money based on your specific scenario. (How long you plan to hold the loan) Still, if you have no other way to compare, comparing the APR is better than just comparing the rate alone or the fees alone, as the APR does factor in the up front costs of the loan.
  
  
  
• Don't skip the "shopping" even if you have a "friend" in the business or a "company special"
• Ask for References!
• A few extras
  
  

As advocates for the Home BUYER, one of the ways we protect our clients above and beyond what most traditional agents do is by offering to help them evaluate lenders and loan options using our TOTAL Cost of the Loan^SM system.

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

Exclusive Buyers Agents do not list homes and never represent Sellers. They represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2009 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Many Buyers pay 1-3% too much for their loan in up-front costs, even after "shopping" for lenders. Some choose a lender solely based on which one has the lowest up-front costs, but they end up paying for it by getting an interest rate that is higher than they qualify for. Others unnecessarily pay too much in fees in order to get the lowest interest rate.

Shopping for a loan does not have to be difficult or complicated. The key is to take control of the process, get organized, and make sure you do it right.

Here are some basics on ONE way to shop for a loan. Click each link for more information on each topic:

• Shop the lenders on the same day and at the same time
• Make sure all the lenders have the same facts
• Figure out the TOTAL Cost of the Loan^SM
• Don't skip the "shopping" even if you have a "friend" in the business or a "company special"
  
  
  Some clients think they have "shopped" lenders before we meet. They believe they have found the best option and they feel comfortable with the lender for some reason. Other times they don't want to shop for a loan because they have a family friend in the business or they work for a lender and they believe they will get a good deal by working through the person or company they have a relationship with. Often, when we help them shop correctly, we will find an even better option with lower fees AND a lower rate, or the "special deal" they were being offered, miraculously gets better. We have, many times, saved clients thousands of additional dollars when we teach them how to correctly "shop" their loan again.
  
  I encourage clients to compare their options... especially if they have been offered a special deal from a friend or their employer. Many borrowers take these loans at face value, never realizing that they could have saved thousands of dollars, just by doing some shopping around. After all, if the borrower really is getting a good deal, comparison shopping will only confirm that.
  
  A good policy has always been: Trust. But verify.
  
  
  
• Ask for References!
• A few extras
  

As advocates for the Home BUYER, one of the ways we protect our clients above and beyond what most traditional agents do is by offering to help them evaluate lenders and loan options using our TOTAL Cost of the Loan^SM system.

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

Exclusive Buyers Agents do not list homes and never represent Sellers. They represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2009 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Many Buyers pay 1-3% too much for their loan in up-front costs, even after "shopping" for lenders. Some choose a lender solely based on which one has the lowest up-front costs, but they end up paying for it by getting an interest rate that is higher than they qualify for. Others unnecessarily pay too much in fees in order to get the lowest interest rate.

Shopping for a loan does not have to be difficult or complicated. The key is to take control of the process, get organized, and make sure you do it right.

Here are some basics on ONE way to shop for a loan. Click each link for more information on each topic:

• Shop the lenders on the same day and at the same time
• Make sure all the lenders have the same facts
• Figure out the TOTAL Cost of the Loan^SM
• Don't skip the "shopping" even if you have a "friend" in the business or a "company special"
• Ask for References!
  
  I can't believe how few people (almost NONE) ask lenders for references. Communicating with recent customers allows you to ask questions about the process and get candid answers from someone who just worked with that lender. This allows you to choose a lender who will:
  
  
  1. Close the loan on time
  2. At the terms they promised.
  
  Probably one of the biggest legitimate fears a borrower has is the bait-and-switch. The lender tells the borrower just days before closing that something was uncovered in their credit that means they can't give them the rate they promised, or it will cost them additional fees to get it (or both). The Buyer feels extreme pressure to take that higher rate and/or pay the higher fees, or potentially lose the home.
  
  Make sure you choose a lender who will work diligently to process your file as completely as possible, as early as possible. I enjoy working with lenders who have full document packages to the title company 2-5 days before Settlement. Closing could be the smoothest part of your transaction, or the most terrible part of it, in large part based on which lender you choose and their attitude, work ethic and thoroughness in putting together your complete loan package as early in the process as possible.
  
  A lender who does as much work as possible as early as possible is less likely to have any "surprise" details come up that could affect the terms of your loan. They will "grill" you and require you to send them all sorts of documentation. It is better to work with a lender who gathers everything they may need up front, than one who waits until the week before closing to ask for documentation that will be necessary to complete your loan package.
  
  Ask for references and ask the references questions about these topics specifically. Don't hesitate to ask any other questions you may have about their experience working with the lender.
  
  

• A few extras
  
  

As advocates for the Home BUYER, one of the ways we protect our clients above and beyond what most traditional agents do is by offering to help them evaluate lenders and loan options using our TOTAL Cost of the Loan^SM system.

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

Exclusive Buyers Agents do not list homes and never represent Sellers. They represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2009 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Many Buyers pay 1-3% too much for their loan in up-front costs, even after "shopping" for lenders. Some choose a lender solely based on which one has the lowest up-front costs, but they end up paying for it by getting an interest rate that is higher than they qualify for. Others unnecessarily pay too much in fees in order to get the lowest interest rate.

Shopping for a loan does not have to be difficult or complicated. The key is to take control of the process, get organized, and make sure you do it right.

Here are some basics on ONE way to shop for a loan. Click each link for more information on each topic:

• Shop the lenders on the same day and at the same time
• Make sure all the lenders have the same facts
• Figure out the TOTAL Cost of the Loan^SM
• Don't skip the "shopping" even if you have a "friend" in the business or a "company special"
• Ask for References!
• A few extras (and feel free to ask questions here as well)
  
  If you know your credit status, lenders shouldn't need to pull it in order to quote you, so long as all lenders are quoting you based on the same credit worthiness (FICO Score, for example, if you have had it pulled for some other reason recently).
  
  You do need to realize that if you shop this way, and your credit score IS worse than what you told the lenders, quotes will need to be updated based on the new information. There are lenders who specialize in helping only "A" credit borrowers who may not even help you (or may not be able to help you at all) if your credit scores are too low. Likewise, there are lenders who may cost a bit more up front, but who are willing to spend the time and effort to help borrowers with lower credit scores either to still qualify for a loan today, or to guide you through the process of cleaning up your credit enough that you will qualify for a better loan at some point in the future. There is more work involved for lenders who are willing to offer those services, and they should be reasonably compensated for the additional work, if necessary.
  
  Cheapest is not always necessarily the best. Performance, professionalism and full service are important. Empty promises or promises that cannot be kept can actually be damaging to a Buyer under contract on a home.
  
  Yield Spread Premium - Yield Spread Premium is something many borrowers are not aware of until sitting at the Settlement table, if at all. The Yield Spread Premium is money given back to a mortgage broker in exchange for selling you a higher rate than you actually qualified for. The lender may feel they have actually earned this money because of extra work they needed to do on your loan. In my opinion, that is fine, so long as it is disclosed to the borrower up front that the lender will be charging a slightly higher rate than the borrower qualifies for in order to earn this "premium".
  
  As a borrower, you should realize that the Yield Spread Premium can be used toward some of your other closing costs, allowing you to bring less money to the table at closing.
  
  Once again, I simply believe that the borrower should be aware of this so they can make an informed decision about whether or not they would rather pay the lender that extra cost up front, rather than be paying for it at a higher cost (via additional interest) over the next 15 or 30 years.

As advocates for the Home BUYER, one of the ways we protect our clients above and beyond what most traditional agents do is by offering to help them evaluate lenders and loan options using our TOTAL Cost of the Loan^SM system.

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

Exclusive Buyers Agents do not list homes and never represent Sellers. They represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2009 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

People who don't really need to sell their home should not put them on the market at ridiculously high prices.

Prices don't go up 20% just because Sellers LIST their homes at 120% or more of market value. In order for prices to stabilize and/or improve, inventory levels need to shrink or the number of Buyers needs to increase significantly, and quickly.

It doesn't help anyone if more than 63% of the inventory on the market is significantly overpriced.

I work with Buyers Only. We see LOTS of homes. Many of my clients write offers on multiple homes before we get a contract. After lots of negotiations, many Sellers are still 10% above market value and will not budge. My Buyers move on. These Sellers aren't serious. They don't need to sell and won't sell unless they can find a Buyer who is dumb enough to overpay for their home. That's just not likely to happen in today's market.

Because of the amount of inventory, Buyers have the luxury of continuing to make reasonable offers to unreasonable sellers until they find one who is willing to be reasonable and willing to sell their home at (or below!) market value.

Fortunately, there are some Sellers who are listing their homes at or near market value. (Note: THESE are the homes that actually SELL.) Even then, many are still negotiable because of all the competition. (Never mind that most of this "competition" isn't really competition at all.)

My clients aren't the only Buyers who have seen a lot of overpriced inventory and aren't willing to overpay for a home in today's market. Buyers are out there and they will jump on well-priced listings. Multiple offer situations are still common in this economy for well-priced homes. It almost seems that they are more common for a well-priced home... It seems most homes that are priced well are Sellers who are "motivated" to sell.

Bottom line for owners: Do everyone a favor and don't list your home just to see if you can get some uninformed buyer to pay you 20% more than it's worth. Buyers aren't falling for it. Those days are gone. The "boom" is over. Everybody will be better off with less overpriced inventory on the market.

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A! Call us at (801) 969-8989 or contact us via the link on this page.

Exclusive Buyers Agents do not list homes and never represent Sellers. They represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2009 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...