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Mortgage Tips and Tricks

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  • Description

    M&T Vice President Drew Kessler on how potential homebuyers can get a great deal on financing.

  • Duration 4:41
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Welcome to our Willis reports special on the housing market buying a new home can be.

A very long complicated process but you know what it doesn't have to be.

The truth is with mortgage rates at record lows there's lots of opportunities out there for home buyers.

But can you get financing drew Kessler is vice president -- -- -- bank he joins me now.

Journal I was just looking at that 3.4 1%.

Fat she's running really actually give their people out -- that I know they'll.

Their first -- was financed with 11% lower IC well -- high.

The early 80s81 not meaningful is this to people who are shopping mall borrower might as you're buying and borrowing free money I mean there's never going to be but realistically -- time in history -- -- gonna be able to -- was low as you could borrow right now.

It's it's truly an impressive time to be able to jump into the housing market -- so that's the opportunity folks out there really low mortgage rates can get a great deal.

But can you qualify so the standards -- that lenders are imposing tougher than you might have seen for five years ago.

Tell me how difficult it is to get that really great -- well the key is -- it's all the preparation and what's a little bit different than it was are a lot different than what it was as for five years ago is back then.

What you had to document what you -- -- show the bank.

Where is very little now it's this much paper work out.

-- around I -- if there -- opposite now you have to do your due diligence you -- tubular verify improve your income which was different for five years ago drill.

I'm gonna tell you the things that bankers are asking for an out of people tell me about I can't get over it really I mean in the DT a live in new chef.

Proving it beyond a shadow of -- doubt some of this income that I think one out even a couple of years ago you -- -- -- What's happened in the marketplace.

It's all about the buyback no bank ever wants to hold something that they can't sell they can't sell off the Fannie Mae or Freddie Mac for FHA.

They wanna be able to unload it even if they're not having plans to do so they still want to have that security in knowing that they -- the secondary market and to do such you need to be able to provide.

The package that the secondary markets looking for so you talk about the minutia yes it is -- times but again.

If you're trying to make blown sell -- you need to be able to dot horizon cross your -- and have everything.

All right -- -- give me a tip on this big big big national bank or community bank.

It's more about the -- -- you're going with the key is having somebody -- accountable incompetent doing what what they're doing I don't know -- outside.

Well you're looking for somebody who's going to be referred to -- -- that you could find out from a local realtor who they might recommend may be an attorney or interview them yourself whether you -- -- a local bank -- call 800 number.

Do like an interview just thinking -- -- you know anyone would be the key question to ask if I'm interviewing a lender to know that they're gonna be on my thought well the biggest thing is George you track record you wanted to basically speaks of their past clients you wanna see what they've done in the past.

Have they been there for five months or have -- been there for five years that to me it is a key.

And it's all about reputation.

Let's talk about the kinds of -- you can get now that everybody talks about a thirty year fixed rate which is awesome right now 3.4 percent.

I think they're probably still people out there who -- adjustable rate mortgages may -- they know for certain -- only going to be in the house for a certain period timer.

Goodness knows maybe maybe people still want interest only -- loans.

What's available out there today is a whole range of product out there -- banks too scared -- regulators offer these products.

-- thing for the most parcel out there you saw how obvious here traditional fixed rate mortgages and for thirty years you have adjustable rate mortgages that range from three years.

All -- to ten years with an adjustable period 357.

Or ten -- also have interest only.

Traditionally being that thirty year -- is so cheap right now the enticement to take that is greater than may be taking a five -- -- for slightly lower interest rates.

Knowing that in your six or seven -- mature and we know it's gonna go up six or seven years from now when you could have that 3.4 percent -- Airwaves it drew just said it's gonna go up six years from now are even sooner -- go way -- panicking go up fast -- we have a big recovery if I think here's looking at inflation you're looking at higher interest rates truck.

Speaking of that though.

Who gets 3.4 1% -- the world get -- is everybody offered that interest.

-- the world gets close to 3.4 percent traditionally the rate that you see advertised is assuming a couple factors.

Assuming somebody putting 25% down -- assuming having credit scores.

Above 740.

So there are couple factors in there that are going to drive that rate -- to 3.4 percent but for instance a cell is gonna come in May be putting 20% down.

Have a credit score of 680 in -- -- get 3.4 they might get 3.5 or 3.5 five can be very close and if you look back on where rates were it's still.

Very impressive and -- very impressive and -- -- but drew thanks for coming on I thought out and about that's appreciate it.

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