How can I get loan terms without giving sensitive personal information?
Blink Lending is a full-service real estate mortgage finance company that partners with clients throughout their real estate investing career.
Houston, Texas, June 21, 2022 (GLOBE NEWSWIRE) — Finding the best home loan can be difficult and getting the terms of your loan without disclosing your personal information can seem impossible. You are probably wondering: Is there a way for me to know my interest rate and closing costs without needing a difficult investigation on my credit report or by providing sensitive documents?
When you call a bank or mortgage lender, they often want to pull your credit immediately with a thorough investigation and ask you to provide your personal information and documents before answering your questions about interest rates and/or terms. This means that researching loan terms may involve providing these personal documents and information to multiple companies, increasing the risk of them ending up in the wrong hands, and with identity theft at an all time highnobody wants that.
So the big question you need to ask yourself is this: Is there a way for me to get loan terms without disclosing my personal information?
Securing loan terms: what you need to know
The best answer we can give you for the above question: yes and no!
“Each bank, lender, credit union or mortgage company will have its own set of rules for providing loan terms. The best way to secure lending terms is to be proactive by providing your information up front and leading the charge early on,” says Paul Lamnatos, Founder of Blink Lending & Investments.
It’s important to note that “providing conditions” is not the same as qualifying for a loan, so here is a brief overview of the information you need to provide to your mortgage company.
Type of operation
“The first thing most mortgage companies want to know is what kind of loan you want,” says Paul Lamnatos, Founder and Chief Lending Concierge at Blink Loans and Investments.
● Is it for a home loan?
● Is this a cashless refinance loan? In this transaction, you will refinance your home for the same amount or less than what is currently owed on your principal balance.
● Is this a cash refinance loan? In this case, you would refinance and increase your overall principal loan balance by receiving or withdrawing funds from your home. equity.
“Interest rates have always been lower for personal homes than for investment homes and you can expect your interest rate to be around 0.50% to 1.00% higher when buying investment houses,” says Paul Lamnatos.
● Is it for a house you will live in? It is often easier to obtain a loan for a property that you occupy than for one in which you invest. This brings us to the next question…
● Is this an investment property? You may need to provide More information to obtain a loan for an investment property.
term of the loan
“The term of your loan also impacts your interest rate, as the shorter the term of the loan, the lower the interest rate and vice versa, which means that 15-year loan terms have lower interest rates than 30 years,” says Lamnatos.
● Do you prefer a loan term of 10, 15, 20 or 30 years? This will be the term of the loan, and you have this amount of time to pay it back.
● Will it be a fixed interest rate or an adjustable (interest) rate (ARM) mortgage? Fixed interest rates offer more security and are historically 0.25% to 0.50% higher than adjustable rate mortgages. So if you don’t plan to live in the house for more than 5 years, an ARM is a great option to consider,” says Lamnatos.
“It turns out that none of us are immune to having to share our credit score in order to get accurate loan terms, but that doesn’t mean your credit should be taken out and/or that a thorough credit investigation is necessary,” says Lamnatos.
● What is your current credit rating? This helps the mortgage company decide if you will be a safe person to lend money to and the higher your credit score, the better your interest rate.
● Where was this score obtained? There are many ways to check credit scores, so it’s important that you get your information from a reliable source.
Equity is a valuable asset, and it’s the last piece of information mortgage companies will need to provide you with loan terms.
● If you buy…
– What is the purchase price?
– What is the percentage deposit amount?
“Keep in mind that loan terms are always based on risk, and a great way to lower your risk (and loan terms) is to lower your loan amount with a higher down payment. The higher the down payment, the lower the risk, and the lower the risk, the lower your mortgage interest rates,” says Lamnatos.
● If refinancing, with or without Cash-Out…
– What is the current loan balance? The current loan balance will be the amount of your loan you have left to pay.
– What is the current market value or appraised value of the home? The market or appraised value of your home helps the mortgage company determine the terms of your loan by giving them an idea of the value of your property, allowing them to determine your Loan to value.
Once you have gathered all of this information, the next thing you need to do is call your selected mortgage lenders. Be sure to ask to speak to a senior loan officer, as this will increase your chances of working with someone more experienced and knowledgeable. That said, “As my dad always says, just because you’ve been doing something for a long time doesn’t make you good,” says Lamnatos.
What to say on the phone with a senior loan officer
Don’t worry about getting stuck when it comes time to get a loan – this sample script will help you know what to say. Simply choose the best options for you from the information above.
Hello, my name is _______ and I would like to know the interest rates and total the lender fee you offer someone buying a house…
a) To live
b) For a 30-year fixed interest rate
c) With a credit score of 765 recently obtained from Credit Karma
d) With a purchase price of $450,000 and 10% down payment.
If you’re refinancing, say…
Hello, my name is _______ and I would like to know the interest rates and total the lender fee you offer someone who is refinancing
a) the house they live in
b) For a fixed interest rate of 15 years
c) With a credit score of 710 which was recently obtained from my credit card company ______
d) With a current loan balance of $245,000 and an (estimated) market value of $360,000.
Fill in the letter boxes with your own unique information, and you should have everything you need!
If you have any questions about loans for a new home or investment property, we invite you to think Blink. Every homebuyer has different needs and wants, and as Loan Concierges (our fancy term for Mortgage Agents), we’re both happy and excited about the opportunity to answer your questions and help you. explore your home loan options, whether you work with us or not.