Is this a good mortgage evaluation?

Question

Hi, I got in contact with a mortgage agent from Royal Credit Union, they helped me run some numbers and gave me this as an estimate.

Is this a good rate? I'm not sure how much I'd expect to pay for closing cost.

One is without payment assistance; the other is with the new generation loans in Minnesota.

Thank you

Daniel Mortigo Espinel · Answer

Hi @Tim Swierczek I have reached out to you on Facebook, looking forward to chat some more. Thank you!

Monica Gonzalez · Answer

Thank you, I'll give your live's a view. @Tim Swierczek

Tim Swierczek · Answer

I don't see anything. Can you please PM me here or PM me on FB messenger?

Tim Swierczek · Answer

Happy to help. One of the things that make "Agency" guidelines good is that they are standardized across all states so you will not find many differences in Conventional, FHA, VA, or USDA loans.  Having said that Minnesota does not have termites due to our weather so we don't do pest inspections, we don't require hurricane insurance, or earthquake coverage, but many but not all lake properties require flood insurance. We do have some local portfolio lenders who can be accessed through brokers. I do not broker those but my wife does. I can connect you if you ask.  I think your big difference will be in local rental laws which vary by city. St Paul is the most strict, followed by Minneapolis.  That being said I'm under contract to purchase a duplex in St Paul using a local portfolio lender so I can definitely run through my thoughts on a zoom. I do a weekly "live deal analysis" on my Facebook page if you are interested, it's public so you can view it without friending me. This may give you some insight into the Twin Cities. Feel free to reach out if you want to talk.

Tim Swierczek · Answer

@Daniel Mortigo Espinel I get it. You're Realtor should help guide you and your loan officer should be able to answer your questions. They can't help you if you don't let them know. I have on occasion learned that my client would ask the Realtor questions about the loan that I didn't know they had. Don't be timid about asking questions. Feel free to reach out if you need help.

Monica Gonzalez · Answer

@Tim Swierczek I'm new to investing and starting to look in Minnesota. As a CA native I've never purchased out of state and curious how different the lending rules are in MN.  Any tips you can provide would be great.

Daniel Mortigo Espinel · Answer

@Tim Swierczek thanks so much for the insight. I’m not sure how to judge all those characteristics you mentioned before but I’ve been feeling pretty confident about the mortgage agent and their work. I wish i understood a little more about the details but I guess that’s something I’ll learn with time. As a first time home buyer it’s hard to know who to trust and what fees I could avoid just by knowing about them.

Tim Swierczek · Answer

@Daniel Mortigo Espinel These are both great offers. As a lender, I can tell you credit unions are price leaders. It's unlikely you will find a significantly cheaper loan option. Credit unions lack product selection and lender experience. To save on costs they can't pay their staff nearly as well, leading to good employees leaving for better opportunities in the for-profit space.  They can handle basic transactions but normally lack the skill and experience to tackle complex transactions.

The MN first-gen loan origination fee and interest rate is set by the state of Minnesota and cannot be changed by a lender. This means that the other fees lenders charge could be different but in essence, all of these loans are priced the same.  Consequently, when you get a DPA loan sponsored by the state, you look for expertise, care, and quality from the lender because there is no significant difference in price.

Daniel Mortigo Espinel · Answer

If you answered this, would you also give some insight on what's a good mortgage offer and what isn't? I'm not sure that I know how to judge and I'd like to hear from a couple more mortgage agents.

Thanks

Is this a good mortgage evaluation?

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