What are Loan Origination fees?
Fee charged by broker for originating the loan. This is one way brokers get paid.

How much are your LO fees?
They are based on the loan amount. Call for pricing.

What's the difference between no fee loans and what you offer?
No fee loans tend to have a higher interest rate. But no closing costs, leaving the principal balance the same.

What's a par interest rate?
This is rate charged by the investor to the broker. No rebate, discount points or mark-up.

What effects interest rates?
Economy, stock market, PRIME RATE, your credit rating and loan to value ratio.

How often do rates change?
All the time. Each morning lenders publish their rates and then adjust during the day as market conditions change.

What is locking in a rate?  top
Brokers need to "lock" the interest rate with lenders prior to closing. This insures the interest rate can't change. Locks have costs associated with them depending on length of lock and when the lock occurs. Locking is best done once the loan is submitted to underwriting.

What's a variable interest rate?  top
A interest rate that adjusts over time to market conditions. Typically "ARMs" as we like to call them are tied to libor rate or the treasury. You can lock an "ARM" for 3, 5 or 7 years they are typically fixed for that time period and then adjust yearly based on market conditions.

What are closing costs?  top
Costs associated with processing ones loan. These costs typically include Loan Origination fees, appraisals, credit reports, processing fees, underwriting fees, title insurance and recording fees. You also have fees associated with your escrow account. See question below for more details on that.

What's an escrow account?  top
When one pays their taxes and homeowners insurance with their monthly payment. Mortgage companies collect those payments in advance and create what is called an Escrow account to hold and distribute those-payments when due. Escrow accounts are optional depending on different lenders. Escrow accounts typically cannot be rolled over from one investor to another.

How do I pay closing costs?  top
You can either bring cash to closing or you can have those costs included in the loan amount depending on loan to value.

What's an appraisal?  top
A licensed assessment regarding the value of ones property and home. Appraisers take into account ones unique home in comparison to other "like" homes in the area to establish value. Lenders use appraisals to determine how much they are willing to lend. This along with your credit scores help lenders assess the risk associated with making a loan.

Do I need an appraisal?
If you have graeat credit, and tare purchasing a home or refinancining the first mortgage, we can often get the appraisal waived.  Bit if you need cash out or have average credit, we will probably need an appraisal.

What are good credit scores?
Credit scores put a value on your credit history. These scores help lenders assess your ability to repay the loan in a timely fashion. Often the loan amount or interest rate are tied to ones credit history or scores.

What affects my credit scores?  top
The way you manage your credit. Do you have lots of debt? Do you pay your debt on time? Have you ever defaulted on a loan? In particular lenders watch how you treat loans related to your home.

What is a mortgage broker?   top
One who sells mortgage loans. We represent several investors. This allows us to provide the best "product" to fit your lending needs.

What questions should I be asking other mortgage brokers if
I'm shopping around?  top
Interest rate, loan origination fee, and how many investors they represent, how fast they can process your loan. These are the things that really set us apart from our competitors.

Walk me through the process, how do I proceed?  top
Loan application and borrowers signature authorization is what we need to get started. We can walk you through the rest of the process, it's easy. We typically need pay stubs with year to date earnings, W2's from the last two years and contact information for your homeowners' insurance agent.

What is mortgage insurance?   top
When one borrows more than 80% of the value of the home lenders requires mortgage insurance. The higher the loan to value the higher the mortgage insurance payment. There are several programs that can waive the M.I.

How long does it take to process a loan?  top
Given current market conditions and volume it takes about 10 to 12 business days from the day we get your application to the day you close. Funds are disbursed four days after close on refinances and next day on new purchases.