Changes in lending regulations combined with no-cost loans and fewer all-cash home buyers benefit Southern Nevadans in the market to buy a home.
“Many homes buyers have lowered their out-of-pocket mortgage costs thanks to new Consumer Finance Protection Bureau’s mortgage regulations that took effect earlier this year and through Premier Mortgage Lending’s ‘no fee’ mortgage program,” Rick Piette of Premier Mortgage Lending said. “The ‘3 percent cap rule’ placed a limit on the upfront fees charged by lenders to no more than 3 percent of the mortgage balance. This has reduced the cash that you must bring to the table in order to close on your home.”
Home buyers who “shop around” for their mortgage have discovered even more savings, especially those who have turned to mortgage brokers who offer multiple mortgage programs from different banks and private lenders.
“Mortgage brokers, like Premier Mortgage Lending, can help you uncover the best deal because we work with a variety of lenders and must offer borrowers the lowest possible interest rate and fees for which you qualify. We are federally regulated in what we can charge borrowers in total compensation, but the mortgage banks, through the use of secondary market profits, have no limits on what they can charge you. This gives us brokers a tremendous competitive advantage when pricing your loans.”
Among the many programs that the full-service, Henderson-based lender can offer qualified borrowers are “no fee” mortgages.
“Southern Nevadans who are looking to save out-of-pockets costs of a new mortgage or in refinancing their current one have been impressed by our new ‘no fee’ mortgage program. Through this program, you’ll still have to pay the typical mortgage fees which are the same regardless of the lender, like sales tax based on the home’s purchase price, recording fees and a home inspection. However, this program can help you save literally thousands of dollars because you avoid other fees that some lenders tack on,” Piette said.
In order to compare the actual cost of mortgages, the longtime Las Vegan advises his clients to compare the APR or the “annual percentage rate” rather than the interest rate because the APR incorporates these various fees.
According to Piette, the first step in finding the “best mortgage deal” is to participate in the complimentary prequalification process with a full-service lender. In addition to connecting qualified borrowers to a “no fee” mortgage and other programs, Premier Mortgage Lending also offers Another Chance Nevada, a program that offers credit-challenged borrowers a second chance at purchasing a home, including those who recently experienced a short sale or foreclosure.
“Becoming prequalified for a mortgage not only helps you understand your mortgage options and how expensive of a home that you may buy. It also gives you an edge in our valley’s competitive real estate market,” Piette said.
“Now is really a great time to buy a home in the Las Vegas Valley because our housing market has stabilized and many of those investors and home flippers have moved on with their all-cash offers,” he said, citing a Greater Las Vegas Association of Realtors report that showed all-cash sales were just over 34 percent in September, a tremendous decline from February 2013 when over 59 percent were cash sales.
“This is great news to those who want to buy a home to live in and, like most typical people, need a mortgage to do so. Having a mortgage prequalification letter in hand is essential because it shows the seller that you have done your research, you know your purchase power, and that you’re serious about buying their home.”
For additional information or to schedule an appointment for mortgage prequalification or refinancing, call Premier Mortgage Lending at 702-485-6600 or visit www.AnotherChanceNevada.com.
Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.