Teaser Rates

I've seen a lot of advertising, either TV, radio or print about "teaser rates". For instance, I have seen a national company I believe it's DiTech.com advertising a $150,000 mortgage for $450.00 a month. How do they do this? Well the answer is simple, there are products out there that allow the homeowner to only pay a fraction of their interest. I do not and will not recommend this product to my clients. Why? Because in this case their (homeowner) balance will actually go up over time. Using the example above at a 4.5% interest rate the interest only payment is $558.37, what does this mean? First, your balance is going up significantly over time. Secondly, you are not going to get 4.5% rate in the market today!

Especially in today's housing environment where appreciation is slim to none, foreclosures are at an all-time high and overall mortgage delinquency is on the rise these types of loans simply do not make a whole lot of sense. I have outlined the following to make sure you get a quality mortgage product.

1) Ask and compare GFE (Good Faith Estimate): A GFE can be "sugar coated" any way you want it. Make sure the GFE will portray actual costs that you will see at closing.

2) Ask for references and testimonials: If you are with a reputable company and individual this should not be a problem and if it is you probably should not do business with them regardless of what they promise.

3) Disclosures: Make sure they go over ALL disclosures with you. To many times items are either not disclosed or forgotten about and this only hurts your understanding of the mortgage process, product and terms.

4) Trust and referrals: Do business with someone that you trust! For instance, Professional Mortgage Group's business is 100% referral. Realtors, builders, title agencies, inspectors and past clients continually feed our business on a daily basis. Why? Because this network of individuals trusts us to deliver a high quality mortgage experience and we have continually done this day in and day out, week after week, and month after month.

With these techniques as your guide you should be in fine shape to receive a quality mortgage product and experience!

Your Comments are Welcomed!

Brought to you by Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker

2nd Quarter Appreciation Function

We have finalized our 2nd quarter appreciation function. We hope everyone can attend and make this event as special as we know it can be. We know how hard our realtor's and other referral partners work and for one night we would like you to kick back and relax .


The function will be held at Boone Tavern on the courtyard between 6:00-8:00 on May 17th.

We will be sending out e-vite's and hand delivering invitations. Be on the look out!!!


See you there.


Brought to you by the Professional Mortgage Group
Columbia, Missouri

Good Credit Habits

Having worked as a lender in a bank for 6 years prior to joining Professional Mortgage Group, Inc., I have seen many ways people mess up their credit. Unfortunately, when it comes to credit, most people don't have a real appreciation of the consequences of their actions. Here is a list of the ways most people trip up when it comes to their credit.

1. Not paying mortgages or car loans or other installment loans on time. By not following through on commitments to pay installment loans you will hasten the decline of your credit score and reduce your ability to get further credit. Any credit you receive will become more and more expensive. The solution is, of course, make your payments on time.

2. Not making payments on time on credit cards. It may seem strange that I didn't just include this in number 1. However, if a person pays his/her installment loans on time regularly, a mortgage lender will often overlook or not be as harsh with one or a few late pays on credit cards. Remember that late payments on all forms of credit will reduce your credit score. And, as the number of times late increases your score will fall faster. The solution is, again, make payments on time.

3. Having too big a balance on credit cards. One of the items on which your credit score is based is the total debt outstanding compared to the maximum debt that can be accumulated. If you find that your credit cards are constantly "maxed" out, you can be sure that will have a negative affect on your credit score. Lenders look to see if a potential borrower is responsible with his/her credit decisions. Carrying a high balance on an expensive credit card is not viewed as a responsible decision. The solution is to pay down your credit cards as soon as possible and to not abuse them. If you are running up balances that you can not pay off in a reasonable time, you are spending too much.

4. Not paying bills (such as medical or cell phone bills) and having collections added to your credit report. A collection is a legal judgement that says you owe a certain amount. This is not good for your credit because even after you pay the bill, a collection will stay on your credit for up to 10 years. The key to staying out of this trouble is to make sure all your bills are paid on time.

5. Bankruptcy. I am continually surprised by the number of people that take bankruptcy who think that it just wipes the slate clean. Bankruptcy is and should be viewed as a drastic measure to stay afloat. People who take a bankruptcy, in general, must wait at least 2 years to get credit again. The notice of bankruptcy stays on your credit (and drags on the score) for 10 years. The solution is to only take bankruptcy as a last option and to understand that it will affect you for a long time.

6. Not monitoring credit on a regular basis. Identity fraud is a huge problem and can take a responsible individual's credit down quickly. The best way to combat this is to know what your credit report says about you. You can monitor your credit for free on an annual basis by going to http://www.annualcreditreport.com/. Take a look and make sure that all items listed are yours and correct. If you come across and item that isn't correct, contact the reporting company or the credit bureau to get it fixed.

Knowing what affects your credit in both good and bad ways will help you make responsible decisions. As your credit score improves you will enjoy better rates.

As always, your comments are welcome!

Brought to you by Professional Mortgage Group, Inc. in Columbia, Missouri.

First Time Home Buyers

Be prepared when you are ready to purchase your first home. Do not listen to the commercials and radio on how you can get into a home without any costs. Someone is paying for the costs associated with the loan. If it is not the buyer it is either the seller or finance company. If the seller is paying the closing costs, generally they will sell the home for more. If the finance company is paying the closing costs, then the rate will be slightly higher.

The key is to prepare for a home purchase. Have money saved up for a down payment or your closing costs. Remember, everyone has pre-paids due at closing. These are insurance premiums for your first year and setting up your escrow account for taxes and insurance if you decide to escrow. If your lender and realtor are creative enough, they can work to structure a deal that minimizes what you must bring to closing. There are instances where you bring nothing, but these are rare. This only happens if the seller pays a $2500 plus in seller paid closing costs! As always your lender should work hard for you, but remember bringing money to the closing table is normal.

Get your credit scores in line by cleaning up any collections, judgements, delinquent accounts, or any other negative aspects on your credit report. Try to get pre-approved through a mortgage company prior to looking at homes. This will help the Realtor narrow down which homes are affordable to you. Be ready to put at least $500 down for earnest money and possibly pay for an appraisal and/or inspection upfront. Appraisal fees are typically $350-$450, depending on the size of the home and location. Inspection fees are relatively the same range as an appraisal.

Consult a Loan officer and Realtor prior to making an offer on a home. This will help you get the home you want and a loan that meets your needs.

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia Missouri Mortgage Broker"

Columbia Missourian

We were contacted by the Columbia Missourian yesterday to tap our expertise on the local mortgage market. The article has not been printed yet, but it was just a basic article about the market, what buyers should look for, and the sub-prime fall out.

We advised that the market was fairly strong for homes under $200k, but very weak on homes $250k and up.

Just like most of the mortgage articles lately, this interview focused on the sub-prime fall out and foreclosures. First off, only 25% of our loans are sub-prime. Based on our experience we gave them some feedback. There are brokers out there that put borrowers in bad situations, but if a broker does things the right way the borrower is fully aware of everything that is going on! We want to educate ALL of our borrowers every step of the way, especially our sub-prime borrowers. After we do this, the borrower must follow the plan.
Almost all sub-prime loans are on ARM's with a pre-payment penalty. This is not something that is done to intentionally hurt the borrower. The reason someone is considered to be a sub-prime borrower is because they have had past credit problems. They must go through a transition phase in order to get back on track. If a borrower in this situation must purchase a home or refinance, they will be given a sub-prime loan (also known as a band-aid loan). It is our job to find them the best sub-prime loan/rate that fits their particular situation. As we all know these loans have high rates. The only way to bring them down is with an ARM product that includes a pre-payment penalty. Now it is critical for the broker to educate the borrower about the product they are on and what they must do in the meantime to fix their credit problems. After this is done, the borrower must follow through. If the plan is followed, in a couple years we can come back and refinance them into a conforming product. We have done many of these and the borrower's are unbelievably happy. They fell under the misconception that they would be a sub-prime borrower forever! The reason you see so many foreclosures is because these borrowers don't follow the plan, an unfortunate circumstance comes up, or they shouldn't have purchased a home in the first place! If the broker does his job the majority of the blame comes back on the borrower. If the borrower isn't educated, I am fine with the blame being put on the broker!

Lastly, we were asked what a borrower can do to avoid many of the horror stories. Simply put, the borrower should have no worries if they can find a realtor and lender that is experienced and reputable. Make sure you do your homework. The realtor will listen to your needs and find you a home that fits you. They will make sure all inspections are done and that you aren't buying a lemon! The lender will provide you with the best loan for your situation and educate you on your product. The lender should also make sure your payment and closing costs are comfortable for your budget and that everything is disclosed.

Professional Mortgage Group is happy to see that publications like the Columbia Missourian and the Columbia Business Times see us as a reputable company with expertise. We have been asked to be used as a voice from time to time. This Missourian article will be our first experience and we hope nothing is taken out of context or mis-quoted. We will soon see. All in all I think it should be a good article.

Brought to you by
Professional Mortgage Group, Inc
"Your Columbia Missouri Mortgage Broker"

The Columbia Mall

Professional Mortgage Group will soon be seen at the Columbia Mall near the entrance to the food court. We have recently made a twelve month commitment to be the exclusive broker for Plasmedia Productions a marketing/advertising firm based out of Kansas City, Missouri. They will be installing a 7ft tall cylinder looking plasma television on May 1, 2007. Thirty-six exclusive companies were asked to participate in this advertising endeavor and for a nominal fee the spots were filled quickly!

We feel very fortunate to have the opportunity to be at Columbia's Mall. Over 14 million people travel to the Columbia Mall every year and they will soon see Professional Mortgage Group in the food court. We are trying to do everything possible to be Columbia's #1 mortgage broker and we truly think this will be a big part in our success.

Your comments are welcomed

Brought to you by Professional Mortgage Group Columbia, Missouri.

Mortgage Refinance

Should I refinance? We get this question all of the time. The answer varies based on your situation, but here are some common reasons:

1. Lower Rate - If you are one of the few who have not taken advantage of this low interest rate environment, you can refinance away from your high rate mortgage into a lower one. This option is especially attractive if you plan on staying in your home for the next few years or if you have had an improvement in your credit score.

2. Cash Out - You may need to tap your equity for a remodeling project or to consolidate some debts or even to take that dream vacation. In this low rate environment, sometimes it is better to refinance the whole loan to get the cash rather than add a second mortgage.

3. Change To A Fixed Rate - Many people took advantage of the lower interest rates of adjustable rate mortgages (ARM) a few years ago. Those rates will be coming up for adjustment soon, if they haven't already done so. This can cause your payment to go up if rates have gone up since the loan was taken out. This is a perfect time to go to a fixed rate loan and stop the chance of further or future adjustments.

4. Lower Payments - If you have owned a property for some time and have built up some equity, you may want to refinance to re-amortize your loan over thirty years to lower the payments that you are required to make each month.

As you can see, there are many reasons to refinance your mortgage. You should talk to someone you trust to find out if it is right for you.

You comments, as always, are welcome!

Brought to you by Professional Mortgage Group, Columbia MO

Professional Mortgage Group, Inc.

We at Professional Mortgage Group, Inc. are currently planning our 2nd quarter "referral partner function". Be on the look-out for your invitation. We will be finalizing a date at the end of this week. From looking at the calendar we are eyeing Thursday May 17th on the Terrace of The Forge & Vine. This could change and if it does we will keep everyone posted. We are looking forward to an exciting event! We want to celebrate what hopes to be a busy buying season while thanking our current & future partners!

Be sure to check back for updates!

Hope to see you there!

Professional Mortgage Group, Inc.

Columbia, MO

"Your Columbia, MO Mortgage Broker"

Columbia, Missouri Mortgages

I simply wanted to take the time to "thank" our Columbia, Missouri referral partners for the influx of business we have received recently. Professional Mortgage Group (PMG) has been very dedicated to earning your trust and respect since our inception and it seems our hard work is paying off!

We have implemented several items to help ensure that your clients are very well taken care of. We recently rolled out our "Buyer's Guide" which has really been met with open arms. We also have joined several local organizations to contribute to the community and local real estate market. Along with this we continue to be active on our "daily blog" and at the same time made some wholesale website changes to help your clients attain necessary information concerning PMG and the home buying process. To accommodate this we continue to be very active with our radio "No Pro Joe" campaign and have recently made a commitment to launch an ad in the Columbia, Missouri Mall. Hopefully this will help your clients become more familiar with PMG and it's business operations.

You will continue to see Professional Mortgage Group be a leader in the local lending community. As you know we will continue to do things the "right way". We truly value your input and will do everything necessary to continually earn your business. We truly appreciate the local support and trust!

Your comments are welcomed!

Brought to you by Professional Mortgage Group Columbia, Missouri

Professional Mortgage Group is Getting Involved

Professional Mortgage Group is involved with several local organizations. We are currently members of the following;

Columbia Board of Realtors

WCR- Womens Council of Realtors

TQBC- Tiger Quarterback Club

Columbia Chamber of Commerce

NAMB- National Association of Mortgage Brokers

All of our brokers attend events on a regular basis. We have thoroughly enjoyed ourselves at each event/luncheon. We look forward to seeing our current realtor/business partners and we look forward to building new relationships through these organizations.

Brought to you by the Professional Mortgage Group, Columbia Missouri

Mortgage Brokers, Housing Bubble and Interest Rates

I have seen more stories this week about the role of mortgage brokers in the housing bubble than I really wanted to see. It seems the mortgage brokers are getting most of the blame for the housing bubble burst than anyone else. This hardly seems fair.

The truth is that yes, there are some bad players in this industry...just as there are in ALL industries. However, from the way the mortgage brokerage business is being protrayed in the media, you would think that anyone who has to do with mortgages is a crook. I'm happy to say that this just is not true. As with anything, people should work with professionals that they trust or have been referred to.

If you want to know what is really going on in the world of real estate, there are several contributors to the current market pullback. First, the Fed lowered interest rates drastically early this decade to combat a coming recession. This allowed payments on larger homes (and their corresponding larger mortgages) to become affordable to many people. They have now reversed that course in the last18 months.

Next, to take advantage of the increased amount of potential customers, banks and lenders in general relaxed the requirements necessary to qualify for many loans. This includes those pertaining to credit score and down payment. Over the course of time this meant that people with very little in assets and who manage their credit poorly got into loans that they can no longer afford. As some of these borrowers are having trouble making their payments, the lenders are tightening their requirements.

The mortgage brokers come next. While being part of the chain of events, they are not as responsible for the downward spiral as they are being protrayed! Mortgage brokers are facilitators to market products. The only way that a market sustains a product is for there to be a demand for it. Since the brokers neither created the low interest rate environment nor the products being offered, the brokers are not the cause of the problems. They are just an easy target. As we mentioned there are always bad apples out there and these type of brokers can make an already risky loan even worse! More and more brokers like these are getting squeezed out of industry every day and we will all be better off for it. Even with this being the case, lenders are the ones that provide the rules and they need to do a better job of policing what brokers they use and the loans they run though them!

So next time you hear that the mortgage brokerage industry is "evil" , "corrupt" or "the cause of all the real estate market's problems", just remember that they are just the most visable link in the chain and are not necessarily the #1 cause!

Your comments are welcomed.

Brought to you by Professional Mortgage Group, Inc. of Columbia, Missouri.

How Important is your credit score?

Most people do not even know what their credit score is. Do you know what your credit score is?

There are 3 major credit reporting agencies that most companies use to find out your score.

1. Experian/Fair Isaac, which ranges from 300 to 850.
2. Trans Union/Empirica, which ranges from 336 to 843.
3. Equifax/Beacon, which ranges from 363 to 850.

Each consumer reporting agency has factors that can effect the credit score. The number 1 reason for a low score is delinquency or an account in a collection status. There are other factors, but each agency is different on what helps or hurts the credit score. A general rule to keep your credit in good standing is to monitor your credit score at least once a year to make sure there are no errors or negative reports. Also, try not to have too many inquiries and too much revolving debt within a 12 month span.

Your credit score is used to determine whether your approved or declined in the mortgage business. If approved, the credit score will determine your interest rate and the type of program you may qualify for. A lot of companies look at the credit history and/or score during the hiring process of an applicant. Insurance companies use the credit score factors in determining insurability of applicants and premium amounts.

Be sure to value your credit score, it can save you a lot of money and help you get your dream house at an affordable rate, the job you've worked so hard at getting, and great insurance premiums.

This message was brought to you by:

Professional Mortgage Group, Inc., Columbia, Missouri

Feel free to contact us at Professional Mortgage Group, Inc if any questions about this topic or any other topics we have posted.

Yield-Spread

There has been a lot of noise in the news about the sub-prime fallout. It is really getting messy and as we mentioned in previous blogs, we as brokers have shifted to using financially strong lenders. Aside from this, mortgage brokers are also taking a hit in the press. Unfortunately there are always bad apples out there that make it in the news. With this being the case, some of the bad press is probably justified. However, after reading some articles on Yield-Spread Premium (YSP) I am a little annoyed. These articles make it sound like all brokers abuse the fees that they charge and do not disclose what they make. While this may be true for some, it is definitely not the case for all! Professional Mortgage Group, Inc. takes great pride in doing things the right way. This is why the company was formed! We make sure we meet our clients face to face and go over everything! They are well aware what is taking place!

Now YSP is the amount of money a broker is paid from the Lender, not the borrower. Brokers are able to be paid by up-front disclosed fees, YSP, or both. This YSP is disclosed, but there have been many cases that by the end of the loan there is very little or ZERO YSP to pay us. . This is just the nature of the industry and if this happens, we don't make any money. This fact alone shows that we do not abuse YSP. If we did and market conditions change, we would never run the risk of making zero on a loan because there would be a larger cushion there! What is frustrating for clients is when these market conditions affect the rate mid-loan and in order to make money the broker either raises the rate or charges an up-front fee at the last minute!

This is something we WILL NOT do to our clients. If we promise a particular loan scenario, we deliver. If that means we do the loan for free, then we do it for free. A happy customer is worth more than a few dollars in our pocket. After all, that happy customer will probably come back or refer us business in the future!

As we mentioned, we do disclose that there is YSP on the Good Faith Estimate. However, I feel brokers are unfairly bashed for getting paid YSP! When you walk in to a furniture store or any store for that matter, is the markup listed on the price tag? Are they required to disclose it?

Of course not! If it was would it matter? Not at all! This is because they must make money somehow and they aren't going to sell something for free! The authors of the articles bashing brokers would probably think a little differently about this topic if they weren't on salary. Just think if they were paid a set fee per article they write. Say they make $250 when they sell it to Yahoo but $300 to MSN. I'm sure when it comes down to it they are going to only deal with Yahoo or be fair and sell it to MSN for $250 also. Of course not! They must make a living. When a broker promises a rate of 6.25%, their job is to give that to the customer. Now if lender A will pay them more for offering that rate to their client than what lender B will, then it is only good business to go with lender A! The extra YSP doesn't affect the client.

Now with all this being said, I absolutely agree that their must be full disclosure and I am opposed to any brokers that are involved in shady practices! I just want people to realize that YSP is a good thing to keep the customer from paying for a bunch of fees out of pocket, while still getting a competitive loan. When they talk about marking up an interest rate to get paid more YSP, you are talking about a very small mark-up like 6.25% instead of 6.125% or 6.0%. This is hardly ripping off a client. Now if someone marks it up to 7 or 8%, that is an entirely different story!

I hope this information is helpful. As always we welcome you questions and comments!

Brought to you by:

Professional Mortgage Group, Inc. of Columbia, MO.

Servicing Disclosure Statement

I am writing this post to explain to everyone what the Servicing Disclosure Statement (SDR) means. The SDR tells you what the chances are that the servicing of your loan may be transferred to another lender and your rights associated with that transfer. Defined in the SDR is "servicing" which refers to the collecting of your principal and interest and escrow account payments, if any.

Should your loan be tagged for a transfer you must receive written notice by the "current" provider not less than 15 days from the date of transfer. You must also receive written notice from the "new" service provider within 15 days of the transfer date. Typically, when dealing with a broker your Servicing Disclosure will be closer to 100% transfer, this is because most brokers do not service loan portfolio's. However, at the closing when you are signing the "lenders" SDR you will see decreasing rates of transfer.

Your comments are welcomed!

Brought to you by The Professional Mortgage Group, Columbia, Missouri

Unethical Mortgage Practices

This week's blog is going to be to simply vent a little frustration about some recent unethical mortgage practices I have encountered over the last week.

I was involved with a file recently where I was competing with a local bank for a loan. When it came down to comparing good faith estimates (GFE) with my competitor I was significantly higher. The reason for this was simply my competitor, a well known local bank, was not honest on his GFE. He had deliberately left off details such as odd days interest that equated to approximately $710.00 and some other small fee's to make his good faith estimate look as good as possible to get the business in the door. This is your classic bait and switch scam. You are promised X and given Y at the closing table. The difference between what this particular borrower was promised and would have actually had to pay at closing was $1,500 dollars.

It was for reasons like this Professional Mortgage Group, Inc. was started. When you receive a Good Faith Estimate from one of our Brokers at Professional Mortgage Group it will have every fee and cost stated.


Your comments and questions are welcome.

Brought to you by Professional Mortgage Group
Columbia, Missouri.

Mortgages in Columbia, MO

A couple of things have happened to mortgage lenders in the recent past. As mentioned here previously, the sub-prime market and the lenders specializing in those types of mortgages have had a shake-up. This has led to several lenders either going out of business, filing for bankruptcy protection, or putting themselves up for sale. This, in turn, has put most brokers in a conservative mode of operation.

How does a mortgage broker become conservative? Well, that means that in addition to finding a great product for your client you also take into account the security of the lender with which you do business. Most loans are now being funneled into the big lenders like Countrywide, Chase, and CitiMortgage instead of specialized lenders like the sub-prime specialists.

What does that mean to you the realtor or mortgage consumer? Mainly that your broker will have to work harder for you to keep on top of the lenders during the underwriting and documenting phase. A good broker will do this anyway, but now it is more important than ever to make sure closings happen when they are supposed to happen.

Any comments are welcome!
Brought to you by Professional Mortgage Group, Inc. Columbia MO

Columbia, MO Mortgage Brokers

When it comes to needing a Mortgage loan in Columbia, MO, you have many options. As a service to the Mid-Missouri real estate community, I thought it would be a good idea to list some of the brokers in Columbia, MO. These are by no means your only options, just a quick guide to the ones that come to mind. If you are reading this blog you are probably someone who does their research. With that being the case you already know it is a good idea to ask around and find a broker that is reputable and does top notch work! The following is the list:

1. Professional Mortgage Group, Inc.

2. Flat Branch Mortgage

3. Mid-America Mortgage

4. Gateway Mortgage

5. Wells Fargo Home Mortgage

6. Countrywide Home Loans

7. Allied Mortgage Group

8. Ultra Mortgage

This is again only a short list of Mortgage Broker's in Columbia, MO. We do not endorse or recommend all of these companies. We at Professional Mortgage Group, Inc. would love your business and hope you choose us! However, from checking around with these companies you can see what products are out there for you and who you feel comfortable working with! Find a broker you like and apply. I know you are probably thinking, "where are the banks"? Columbia has no shortage of these and there is nothing wrong with a bank. They just don't have the wide array of products that brokers have.

I hope this list is helpful.

Your comments are welcomed.

Brought to you by

Professional Mortgage Group, Inc.

Your Columbia, MO Mortgage Broker!

Closing Credits and Seller Paid Closing Costs

I was recently involved in a file that had been previously been turned down by 3 other brokers, all of whom had promised the borrower and realtor a timely close. I was contacted by the buyers realtor who in turn put me in touch with the buyer. After speaking with the borrower and analyzing the contract it was very easy to see where these "inexperienced brokers" went wrong. Simplyput, the closing cost credits amounted to over $28,000 & almost 10% of the purchase price. Now there were several other factors that were an issue but the biggest mistake made was the borrower dealing with unprofessional bokers and the contract itself. After careful consultation with both realtor's and the buyer we were able to restructure the contract and close the file on time". What does this mean?

Seller paid closing costs are used in numerous transactions and are not uncommon to most contracts. Closing cost credits or seller paid closing costs are used to help the borrower get into a home with as little out-of-pocket money as possible. For instance, let's say that you have found a home and both you and the seller have agreed on a price of $100,000 with no seller paid closing costs. However, after careful thought you decide that the only money you want to contribute is $1,000. In order to accommodate everyone, you would want to offer $102,000 and have the seller pay $2,000 toward your closing costs. In essence you are financing the closing costs into the loan while at the same time not cutting into the sellers bottom line.

Closing cost credits have a cap, typically for Fannie Mae or Freddie Mac loan, (i.e. Conforming products) this is 3%. Meaning the max closing cost credit for these loans cannot exceed 3% of the sales price. So in our example above the max "seller paid closing costs" would be $3,000.
For "Non-conforming" loans or "sub-prime" loans the max credit is 6% of the sales price. Again taking our example above the max "seller paid closing costs" cannot exceed $6,000. Now with that being said under normal circumstances you should never need $6,000 to close a loan. So just because you have 6% at your disposal does not mean you must use it. Keep in mind that a lot of this depends on the loan, product, and the broker involved.

Your comments are welcomed!

Brought to you by Professional Mortgage Group Columbia, Missouri