Wait are you only going to check with one lender? Let me give you a real life scenario. First time home buyers give me a call and are ready to go house hunting in Northern Virginia. They have a letter from a lender who specializes in VA (Veterans Administration) loans. They were excited about the possibility of a $1000 rebate from the lender when they bought their house. As we talk it is apparent they are going to need far more than the $1,000 to get in the door of their first home. When I looked over the worksheet from their lender that meant they would need about 4% assistance from the seller to be able to meet their goal.
In a competitive market getting 4% though not impossible, can be hard especially if you are up against other offers. I asked them if they would be willing to talk to another lender before they made a final loan decision. They did and here’s what happened. The lender offered competitive rates AND when they were done had given them enough back in lender credits to cover all of the closing costs, paid for 2 years of HOA dues, a home warranty AND they got their $1000 earnest money deposit back.
Last week I sat at the settlement table and watched as another VA purchaser (not my buyer) using a different lender received ZIP ZERO NADA in closing cost assistance. They were putting money down but they had to bring an additional $10,000 plus to cover their closing costs. The reason they stayed with the lender? Because they offered them $2000 a “rebate” if they used them to buy a home. Their loyalty to a lender costs them $8,000.
Make sure if you are house hunting in Northern Virginia to ask your Realtor® for recommendations for local lenders. Though we can’t qualify you for a loan, we work with lenders who offer buyer’s more than just a paltry “rebate” for using their services. Call us to find out how we can help you buy your new home.