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FREQUENTLY ASKED QUESTIONS
1. What is a Mortgage Broker?
A mortgage broker is the middle man between you and the lender. We work for you to get you the best rate and closing costs. We usually get paid by the lender, so you have nothing to lose.
2. Why are your rates so much lower?
They are lower because we have the flexibility to shop your loan with several banks and cut our profits to get your loan. When you go to a bank you are limited to one rate sheet and one product. Our programs are endless, which gives you the option of a better rate.
3. Will it take longer to use a broker because you do not lend your money?
No, actually we can have approvals in 24 hours on certain products. The traditional bank still has a committee that meets once a week to decide if they want your loan or not. This process can take several weeks or even months.
4. Why should I get an Adjustable Rate Loan?
The general rule for determining if you are a candidate for an adjustable rate mortgage is if you are going to move within five years, your income is going to dramatically increase and you want lower start up payments, or you are going to acquire a large sum of money to put on the balance of your mortgage. On an adjustable rate mortgage your payment will generally change every 12 months. The rate is usually 2-3% lower than the fixed rate at the time. The benefit of getting an adjustable is you will save thousands of dollars the first few years in interest compared to a higher fixed rate. On an adjustable rate mortgage if you prepay the principal mortgage your adjusted payment every year will be based on your current balance, which means that your payments will be less. On a fixed rate loan no matter how much money you put down on the principal you will never change the payment, only shorten the term.
5. What is Title Insurance?
Title insurance is a closing costs that is required by all lenders. This insures that the bank is going to be in first position after closing and that there are no existing liens or judgments filed against the property.
6. Do I need to get a home inspection?
No, the lenders do not require a home inspection unless the appraiser states that there is a need for one. (example: Cracked foundation, missing beam, etc.) Although, we highly recommend that you get one!
7. Can I avoid paying PMI?
Yes, you can do an 80/10/10, 80/20 or 80/15/5 and not pay mortgage insurance.
8. What is a Jumbo mortgage?
A Jumbo mortgage is any mortgage in excess of new $ and requires different rates.
9. Can I buy a house even if I went bankrupt?
Yes, depending on how long ago your bankruptcy was discharged and what your credit has been since the bankruptcy. If you are in Chapter 13 you can obtain a mortgage if your previous 12 months of bankruptcy payments have been paid on time.
10. Can I get a mortgage for a second home or investment property?
Yes, we offer mortgages with 100% financing options on these properties and the rates are very competitive. The number of units and your credit score will determine your rate.
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