Monday Morning Mortgage Tip

Posted by Shane Andersen on Tuesday, February 20th, 2018 at 9:38am.

Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase. 

This morning I sat down with Andrew Jallo from Dacotah Bank, giving us a great tip about seller concessions and what to look for.  You can reach Andrew at 605.692.8600 or Andrew.Jallo@dacotahbank.com.  His office is located at 1441 6th St., Brookings SD 57006 or on the web at www.dacotahbank.com.

 

Got a question for Andrew or any of my lender friends, feel free to email them or myself at shanea@century21gka.com.  

 

- Alright, here we go. Little dark here, I don't know. I think we've said it before and our heads will shine off here a little bit. But good morning guys. 8:15, actually Tuesday. This poor guy always seems to get hit up on the holidays here. So, they were off again yesterday on another holiday.

- Rough life.

- It is, it is. So, got Andrew here at Dacotah Bank. It means it is the Monday morning mortgage tip on a Tuesday morning. So, let's say that a couple different times fast. Andrew's here to talk a little bit about seller concessions or buyer concessions and give ya a tip on that type of information. So, take it away, Andrew.

- Yes, thanks Shane for having me. So, a lot of times, we get the question about seller concessions or seller contributions and there is a maximum based upon which loan program. So, work with your lender. You're gonna identify which loan program you're gonna go with and you wanna let your agent know. So it's part of the negotiation process. If you're limited for cash on-hand, you can help build some of your closing cost strategically into your loan amount, so as an example, if you're working with Rural Development, the maximum seller contributions is 6%. Looking at a VA loan, the maximum is 4% and then conventional gets a little bit more complex based upon how much you're planning to put down as your down payment. So, as an example, if you're putting the minimum, 5% down, the maximum is 3% seller contributions, but if you put 10%, so you're at a 90% loan to value, then you can go up to the 6%. So, the main thing, work with your lender. Make sure because you don't wanna get too much seller contributions that you're leaving money on the table but at the same time, you wanna be able to be as powerful in your negotiation to limit your actual out-of-pocket closing expense.

- Exactly, yeah. That's a lot of numbers. Obviously, the best way to get more information is to contact Andrew. He'll be more than happy to sit down with ya, talk to you a little more in depth about that. We're giving you 6%, 10%, 90% loan value, all that good stuff there.

- Yeah, definitely sit down with me, send me an email. Like I do a lot of times, I run the numbers and give you an estimate, how much cash to close, as well as hey, work with your agent and try and get this much so that way, you maximize your seller contributions.

- Perfect, alright. There you have it, guys. As always, I'll have Andrew's information on the bottom, on the top, on the sides, wherever that device allows you to see it. If you have questions for Andrew, please reach out to him personally, ask him anything that you like. If you have questions for either of us or any of my other lender friends, please comment on the bottom, on the side, on the top, or wherever your device allows you. We'll be happy to answer those questions on our next episode. So, there ya have it. We'll be back on our normal schedule next Monday, 8:15. Until then, like I said, let us know if you have questions. We'd be happy to answer those. So, have a great week guys. Talk to you later.

Thinking of selling and/or moving to Brookings, Volga, or any surrounding areas? Got questions? I’m here to help! Visit BrookingsHomeTeam.com for more details!

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