How DO You Find Your Best Nashville Mortgage Lender?

I recently heard the following from a radio commercial for a Nashville mortgage- “while other lenders are raising their rates, we’re keeping OURS low … Huh?   At first “glance,”  it sounds great- this lender is going the extra mile by giving borrowers the lower rates they deserve, despite the increasing rate environment that all the other lenders are affected by.  

Well, as nice as it might sound, it just doesn’t work that way.  All lenders are subject to the same rate gyrations, and so the biggest rate difference you’ll find among lenders is typically just a measley .125%, or at most .25%.   There won’t be one Nashville mortgage lender who has the “corner” on the low-rate market, because if they did, word would get out, and then that lender would be slammed with so much business they’d have to raise rates high enough to stave off the onslaught of incoming mortgage applications. 

So when you hear advertising like this, the best conclusion is that the lender is charging more closing costs to the borrower to achieve the “lower than market rate” status.  It’s easy to advertise low rates and then not even disclose the heavier closing costs (aka “points”) required to get the better rate.  The only time you’ll get a hint of the higher closing costs is when the lender advertises the APR, which is a goverment formula that takes into account the closing costs.  But just seeing or hearing the APR % doesn’t really help the average consumer know what the closing costs are which make it up.  You’d have to get that lender to give you a Good Faith Estimate, and to get that you’d have to do a full application.  Then, you’d have to do the same with 2 or more other lenders to find out how they all stack up.  You’d have to make sure the lock period is the same, and also get the rate quote/estimate on the same day, if not same time of day, since rates can literally change hour to hour. So in the end, it’s quite easy for a lender to make these claims, because it’s so difficult to know for sure if they are right.

The better lenders don’t have to advertise “teaser rates” hoping to get their phone to ring.  They simply offer each client a competitive rate, and reasonable closing costs, and then back it up with stellar service.  Service that includes being available after hours, educating clients about what programs make the most sense for their situation, attending the closings to make sure everything goes smoothly, following up months and years after a loan is closed, etc.  Just like about anything else out there, one of the best ways to find out who will offer you this kind of service is to simply ask around for a referral.  

If you are in need of a Nashville mortgage, feel free to give me a call at (615) 261-1368.  I’d be happy to provide you  great advice tailored to your situation,  and a very competitive quote.  And should you decide to move forward, you’ll get nothing but great service - I promise!  Your repeat business and referrals are my best advertisement.

Nashville Mortgage Loan Submisssion Documentation

I have purposefully tried to keep my website from being the “typical” mortgage lender website where you have all the usual drop-downs and buttons, but I do get asked often what is needed to proceed with a loan submission, and figured that many people in need of a Nashville mortgage might have the same question. 

First, the lender wants to know how much money you make.  So you’ll need to gather your most recent 2 paystubs and the most recent 2 year’s worth of W2’s.  If you are self-employed, then you’ll need to provide your most recent 2 years’ tax returns, including all schedules.  Even if most of your income comes from your W2 job, they’ll still need to get the tax returns.

Second, the lender wants to know how much money you have in the bank.  How much you need to bring to the closing table will largely dictate how much you’ll need to prove.  But sometimes your loan approval calls for proof of assets in excess of what you need for closing- this is called “reserves.”  You will generally want to gather your most recent 2 months’ worth of bank account statements for these items.  If you have money in multiple accounts, it’s always safe to send statements for each of them.  For refinances, you normally wouldn’t need to bring money to closing as the closing costs are usually wrapped into your loan.  So if your lender asks for bank statements on a refinance, it’s likely because they need to show your “reserves” that are required for the loan approval.

The lender will also want to verify your employment, so give them the name and number to your Human Resources Department or your immediate supervisor.  Most lenders nowadays will verbally verify your employment a day or two before closing, so you want your loan officer to have this information early on to avoid any last-minute complications or delays.  If you are self-employed, then this is not applicable.

Miscellaneous documentation a lender will need include your homeowner’s insurance policy declarations page, or at a minimum, the name and number of your agent.  If you are refinancing, you might get a discount on the cost of the new “lender’s” title insurance policy if you can locate your original “owner’s” title insurance policy.  It could save you a few hundred dollars, so it’s worth finding .  If you receive or pay any child support or alimony, the lender will want to see a copy of the divorce decree to verify the amount.  Finally, if you have any documentation which might help explain an unusual circumstance surrounding credit history, income, recent large deposits or other situations, you’ll definitely want to find it in case the loan officer might ask for it.  

Gathering all of this information and anything else your Nashville mortgage lender might request will help get you on your way to a smooth closing.

Nashville Mortgage News- LOW to NO Down Options in TN- VA Loans

This article is first in a series of several, highlighting loan programs still offered to prospective buyers in Tennessee who are needing low, or no-downpayment loans.  I’ll be discussing the programs in more detail in future articles, so this will be an overview.   So let’s get to it.

For those who are active-duty or retired military, VA loans still offer 100% financing on purchases.  Rates are competitive with conventional and FHA loans, and these loans do not have monthly mortgage insurance (think PMI), which is a big benefit.  You can get fixed rate loans (30 and 15) or adjustable.  Most people opt for the fixed rate programs, especially with rates historically low.  We’ll go into more depth about VA in a future post.

For the majority of us who aren’t eligible for a VA loan, there are still a few options.  Stay tuned for a brief article about USDA loans in my next Nashville Mortgage News article.