NLIC.org

Lisa Said:

Can some banks/lender close a home loan within 10 days after they receive the home loan application ?

We Answered:

Yes, if the buyer has all of their ducks in a row.

Anna Said:

When am I tied up to a LENDER during home loan process ?

We Answered:

You are committed as soon as you have signed the loan paperwork (not application), usually called "settlement" You can get up from the "settlement" table and walk out, you may be out some money, but your never "tied" to a lender until they have a signed contract. Same goes for them, they are not "tied" to you until they sign---they can say no to the loan the day before (unusual, but not impossible).

Casey Said:

who is the best home loan lender for first time buyer in michigan?

We Answered:

What you should do is seek out a lender with FHA financing. FHA is about the only zero down payment program today. It is technically a 3% down program, however you can have that paid for as well through various techniques. Again consult a lender that is very familiar with FHA, as well as your real estate agent because he/she needs to structure the contract a certain way for FHA loans to take advantage of it.

As far as your credit score, FHA does not have a minimum credit score limit. Your ability to re-pay the loan is the single determining factor with an FHA loan. Your credit score of 660 is not to bad. It could use some improvement, but certainly not horrible.

So to re-cap; FHA loans are becoming more and more popular due to tighter lending requirements with conventional. There are ways to get a home with zero or very little down. There also is a reduced mortgage insurance monthly premium.

I see that being a perfect loan for you.

Cathy Said:

What should I look for in a home loan lender?

We Answered:

Someone who will be honest with you, communicate effectively with you whether it is good news or not so good news, has a good work ethic, retuns calls (or e-mails), has access to multiple lenders, is licensed and most importantly someone who will put you in the BEST mortgage program for you and your situation; not what pays the most commission to the lender.

I am a mortgage lender. If you need assistance please feel free to drop me a line or give me a call.

Kevin
Kruorock@firstratelending.com
866-562-6838 x 106

Johnny Said:

When can a home loan lender back out of a loan?

We Answered:

Yes. What has happened is that the loan product that they were selling you was backed by a particular investor (which gave them the ability to offer it and fund it), and apparently the investor has either stopped doing business with the bank, or the investor has dropped the loan program.

My guess, is that they lost the investor, because when a loan program is being discontinued, I have never seen a situation where a prior notice is not given to give loans in the pipeline a chance to close. I would call and ask to speak to the Operations Manager that supervises underwriting (NOT your loan officer) and demand for a thorough and complete explanation.

They should be offering you an alternative loan and push it through...like yesterday.

PS: If my post sounds confusing...think of it this way...lets say you had a car dealership that sold nissans, toyotas, and bmw's. If the company that sold them nissans decides not to make nissans anymore, then they can't sell them, OR if the maker of nissans decides not to do business with the dealership any longer.

I wish you luck...what a horrible mess!

Martha Said:

What's gonna happen if home loan lender going broke?

We Answered:

Nothing major will happen. You will get a letter one of these days that another company has bought your mortgage from your defunct lender and that payments and inquiries should be sent to the company that now holds your loan.

You will still have to make the payments as before.