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You’ve probably heard the radio ad that blares out the speaker where the guy yells at you that,”…the rates are low now BUT YOU HAD BETTER HURRY!!!”, or you’ve seen the slick TV commercial that promises the lowest rate, or the newspaper ad that claims no closing fees. Where should you turn? Who can you trust? How can they make those claims? Is it really a good deal?

Truth is, if one of those claims were meaningful, all the other lenders would go out of business. So what’s going on here? It’s all in the small print. Basically, there is some flexibility in putting a loan package together. You can fold fees into the cost of the loan. Never mind that you’ll actually pay a multiple of the value slick cash loan  of that money over the course of the loan, the upfront fee is hidden. It only appears to ‘go away.’

Basically, your loan will reflect your credit score and the willingness of some institution to take a risk on your deal. Lower scores are higher risks. Banks (investors, lending institutions) don’t want property from a default on a loan. They have sufficient statistics to carefully weigh their risk versus reward (rate).

But there are many programs for special circumstances. That’s where a great loan officer can make all the difference! For example, one couple could afford a home they loved, but didn’t have enough money to put 20% down to avoid monthly mortgage insurance. The creative lender then obtained a SECOND loan for them to make up the difference between the cash they had for the down payment and the 20% required to avoid the mortgage insurance.

Happily, though “too good to be true” IS often true, a happy loan experience can also be true in the hands of a creative and knowledgeable loan officer.

Terri Wood at [] has a pool of dozens of lenders and many special programs to offer great rates and loans that fit everyone’s special circumstances. She specializes in Texas mortgages, jumbo loans, and home equity loans.

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