As realtors, we connect with vendors across a wide variety of industries and we’re excited to feature a Q&A with a local business each week. First up is Brian Sunder of Marketplace Home Mortgage, who is our in-office lender with Marketplace Home Mortgage.
Team Lucky Duck: How long have you been in the mortgage business?
Brian Sunder: 30+ years, it’s hard to believe!
TLD: How did you get into the business?
BS: After working as a real estate agent out of college, I moved into the financial industry with consumer loans and small second mortgages. Eventually I moved to Prime Mortgages and when I heard of the position to be an in-office lender with Keller Williams Preferred Realty, I was really excited for that opportunity.
TLD: What are some misconceptions you hear about mortgages?
BS: A lot of people think regulations have become so strict that it is impossible to get a mortgage without 20% down now but that’s not the case. Sure, we have to pay closer attention to credit scores to minimize risk but there are a lot of options out there.
TLD: Interest rates are at a historic low. What are some strategies to get the best interest rates?
BS: Max out your credit score and increase your down payment. The less risk you show to a lender, the more appealing your mortgage is to them.
TLD: What is the minimum credit score I need to get a mortgage?
BS: Of course 780 would be ideal but depending on the loan it can be significantly lower. 660 is the minimum for conventional financing and 640 is the lowest you can go for FHA loans. There are some brokers out there that are willing to accept 580 but you’ll pay for it in financing fees and insurance.
TLD: Do different lenders charge different rates?
BS: In general, banks stay pretty competitive depending on the level of risk in the application. Typically banks stay within 1/8th of a percent but some have different standards for credit scores and qualifications. As a broker, we have access to several banks to find you the very best deal.
TLD: How much does it cost to get approved for a mortgage?
BS: There are no costs in applying for a mortgage. A buyer is responsible for the appraisal (typically $400) and an inspection if they choose to do one. Otherwise there are no costs to the buyer before closing.
TLD: What questions should our clients ask a lender when they meet for the first time?
BS: Is their underwriting done locally or out of state? The more access we have to the underwriter, the better. That way we have instant answers to ensure everything closes on time. All of Marketplace Home Mortgages are underwritten in-state. Also, is the pre-approval signed off on an underwriter or just the lender? It is much more accurate to have an underwriter sign off on an approval to avoid any mishaps at closing.
TLD: How long does it take to get approved for a mortgage?
BS: Once all the paperwork is received, it takes 5 business days.
TLD: From the signing of a purchase agreement, how long does it take to get a loan underwritten and me into my home?
BS: As long as all items requested are accounted for, it takes 30-60 days.
TLD: How will the changes coming to the mortgage industry on October 3rd affect consumers?
BS: The documents are simplified to reduce confusion and to make the process run more smoothly.
TLD: What would you tell a customer who wants to buy a home but is nervous about their financial background?
BS: Despite any past credit issues, we can always help you work out a game plan. If you don’t start, you will never be in a position to purchase a home!
If you’re looking to speak to a lender or are looking to get pre-approved, you can reach Brian at his website or by phone: 952.746.9779. Thank you so much to Brian Sunder from Marketplace Home Mortgage for being part of our Featured Vendor Friday series!