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We have compiled a list of
frequently asked questions
to help you
"GET SMART":
1. What's the difference between a banker or a broker?
A banker
actually funds the loans, while a broker
shops all different banks for the best rates and terms.
2. Do I pay more by working with a broker?
No. Most banks have two different departments…Wholesale (to brokers) and Retail (to public).
3. What if a lender from another state contacts me?
The lender
who contacts you will have already identified the fact that they
will be able to lend in your specific state. You should always stay with
the lender you are comfortable with.
4. Do I write a check to lender at the beginning of the application?
Usually a check
is necessary upfront
to order both the appraisal and the credit report on a loan file.
On a refinance the appraiser is usually paid by the homeowner
when the inspector arrives at the property.
5. What are loan points?
Loan "points"
are a percentage
of the loan amount which is factored in to the closing costs.
6. How can Lender's advertise no points loans?
The cost of a mortgage
is calculated by combining the interest rate and points. If the
points are 0 the rate is usually higher. The lower the rate the
higher the points. The true
cost of the loan can usually be
determined by analyzing the APR or Truth in Lending Disclosures.
7. Should I lock in my interest rate
at application?
This is the toughest question of them all. When you
"lock-in"
your interest rate the lender usually pays a fee on Wall Street
to reserve the specific amount of money for your loan. Therefore
most banks will not allow negotiations on interest rates after
they are locked-in, even if the rates are lower. When you lock
your loan make sure that it is the interest rate that you are willing to accept no matter what happens.
8. How long does the loan process take?
The loan process can take as
little as two weeks providing all of the proper information is received upfront.
The more information that is provided at the beginning of the
loan, the faster we can process that information and have the
loan underwriter approve your loan.
9. What information will I need upfront?
The most common items needed are: Last Two Years Tax Returns,
Recent Paystubs,
Two Months Bank Statements,
Mortgage Holder or Landlord Address
and Account Number, Last Credit
Card Statements if Balance is Carried
Forward, Copy of Certificate of Title
for Automobiles.
10. Do I have to use the Lender recommended by the builder/Realtor?
In most states it
is illegal for a builder or Realtor to force a lender's service
upon you. It is your right to pick a
lender that you feel the most comfortable with and who offers you
the most competitive rates. If you have been told that you are
not allowed to use your lender of choice, call your local Dept.
of Real Estate to verify what choices you have.
