The "Profit First" Mortgage Tutorial
How to get the best deal.
The purpose of this tutorial is to explain the "nuts and bolts" of how a mortgage is structured so that you can determine the amount of profit that the lender has in the loan.
Let's talk about negotiating your next mortgage for minute. In today's mortgage market most people will fill out one form that advertises, "let lenders compete" and hope that this will be their solution for a better mortgage. This is a good start, however, just having multiple lenders that "compete" for your business will not ensure you the best deal on your next mortgage. |
Keep in mind; the difference between a good deal and your best deal on your next mortgage could cost you thousands of dollars. We feel that by helping prospective borrowers to understand the actual expenses vs. the profit associated with mortgages both lender and borrower will enjoy the benefits of up front pricing. This tutorial will do exactly that for the reader.
Your
goal in the final negotiation is to know approximately
how much the lender is earning and make sure it is in
the appropriate amount of profit for the loan size and type. A good deal has to be a win-win situation for both parties; this ensures that you have a good deal and the lender is making a fair profit.
My experience is that most borrowers do not mind paying a fair profit, however today's lenders are so shady about where they hide their profit it makes the even the "fair minded" wary. Recognizing this, we have developed the "profit First" negotiating method. This tutorial series will teach you how to evaluate your mortgage from the lenders perspective and feel confident about your decisions. |
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The “Profit First” method, simply put, is for to you ask the loan officer or mortgage broker how much profit they are willing to work for on the proposed mortgage. Knowing the correct answer to this question is the trick though. If you choose to work with one of the LendFast.com preferred lenders they will discuss this with you up front and help you through the process. Sounds simple enough right? There is a little homework involved in order for the "Profit First" method to work but by spending 30-45 minutes on this tutorial WILL save thousands on your next mortgage, and its free. Not a bad investment of time..
The way we see the situation, you are going to spend some time on your next mortgage if you want to make sure your not getting hosed right? You can spend your time by chasing phone calls by the "dozens" after typing your personal information into one form. Or you can spend your time up front doing a little homework and choose the local lenders that are best suited to helping you. After this tutorial, you will understand how to negotiate from a position of power as opposed to one obligatory blind faith and you will know you have your best deal.
This tutorial is written assuming that the reader has an average understanding of mortgages. Throughout the text you will find links to articles (they open in separate windows) which will discuss certain topics in more detail. Keep in mind, the Author is a loan officer who received a "D" in english, but got an "A" in math. Grammatical errors are inevitable, please report them here.
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