Financing Door County Property
Financing Door County Property
FREQUENTLY ASKED QUESTIONS ABOUT FINANCING DOOR COUNTY REAL ESTATE
Q. Does it matter what lender I choose to finance my Door County purchase?
A. Connie ALWAYS recommends Buyers work with a lender who knows Door County real estate. Working with a local lender assures that the Buyer is working with someone who knows the idiosyncrasies of the Door County Real Estate & lending markets, which are not like other markets. In the past, we have run into lender problems with appraisals and flood zones. There are documents that are specific to Wisconsin loan packages, and closings are often handled very differently in different areas of the country. Local lenders are used to working with the local title companies, and visa-versa, so use of a local lender usually means that your overall closing will go more smoothly. In fact, in Door County, Buyers who use local lenders close their transactions!
Q. Do financial institutions make loans on seasonal properties (cottages)?
A. Door County is a destination for many second home owners and lenders treat the purchase of your second home the same as they would your primary residence. You can purchase a second home with 5% to 20% down and the interest rate is the same as if you were buying your primary home. Some lenders however do not make fixed rate mortgage loans on seasonal properties. Connie can make recommendations to you regarding lending institutions that do not differentiate between a seasonal home or year round residence.
Q. If I need financing, should I work with a local bank in Door County?
A. I always recommend that buyers talk to a local bank when considering financing on a property in Door County. Whether you are purchasing vacant land, a condo-hotel, condominium or a waterfront property your REALTOR can make recommendations on lending institutions that specialize in financing the type of property you are purchasing. Local lenders are familiar with the uniqueness of this area and will work closely with your REALTOR, appraiser and title company to assure that the transaction goes smoothly from the date the offer is accepted until the day of closing.
Q. Has all the recent news about the credit crisis made getting a mortgage harder?
A. Obtaining a mortgage is similar to what it has been in the past however the recent credit crisis has lenders and their investors evaluating risk in a more comprehensive way. That means that borrowers with smaller down-payments, low credit scores or other layers of risk will pay higher rates and/or fees than borrowers with less risk. Getting a pre-approval and knowing your credit score will provide your lender with the information needed to determine your personal situation.
Q. Do I physically have to attend the closing?
A. No, your closing will most likely be handled by a title company that is capable of providing closing documents to you via overnight package and subsequent receipt of your wired funds. You are invited to attend the closing and we love to see you. However, over 95% of Connie’s closings are through the mail, fax, and internet.
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