Mortgage Q&A -
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Buying a home or refinancing is one of the largest financial decisions you will make in your life - As in many other industries, the mortgage industry has more than its share many unethical individuals that are out to make a buck, that do not have your best interest at heart, and may try to take advantage of your stress at this point in your life. For example, I have heard numerous stories about people being called and told that they need to "quickly come into the office and get all the paperwork signed, rates are changing". Not true - you should never be made to feel panicked or pressured about making this size of a financial decision. If you are truly ready, a rate can be locked right over the phone.

Advertisements in the newspaper or online are also rampant with misinformation, designed only to get phones ringing. Rates change daily, sometimes hourly, so just by virtue of being in print somewhere, they are almost sure to be outdated. The trick is, lenders can put anything out there, and if it gets the phone to ring, that is all they need. The following conversation ensues….."Hello, I'm calling about the 7% rate I saw that you advertised in Saturday's newspaper?" "Well, it's wonderful that you called! Rates did change a bit this morning, and are now at 7.5%, but let's talk a little more about you……" Also in todays market many factors are considered when quoting a rate from downpayment to credit ratings.

Lenders will also frequently promote "free appraisals" or "discounted origination fees". This is great, but BE AWARE that if you are not paying for it one place, you are paying for it somewhere else. Interest rates and closing costs go hand in hand, so it is important to look at the overall loan package, not just one individual item that seems discounted. We all work off the same financial markets with essentially the same profit margins. Do we make money when we do your loan? Certainly, just like you get paid for working at your job. What we seek for you is the best balance between a great interest rate and reasonable closing costs. Todays laws require originators to disclose yield spread- the commissions that we recieve from the bank.

Online lending is also particularly scary - ANYONE can throw up a mortgage loan website, and be aware that the person behind that great rate you are seeing online might be some guy working out of his basement in Florida who has been in the business for 6 months.  The NMLS website allows the consumer to check if a person is properly licensed and length of time in the business.  For example, closing costs vary significantly state to state - out of state lenders frequently misquote fees, as they are not aware of local and state requirements. I have personally been involved in bailing out several individuals who were lured in by an offer that seemed too good to be true, but then the lender could not come through at the closing. Rates are not the only factor to realize when purchasing your mortgage.  It is important to have someone that will work for you even after the loan transaction has closed.


Is buying a home stress free?

Purchasing a home is a major financial commitment and moving is a major life event. What we desire is that your stress will not be in any way related to your home financing.

The best for the price you pay?

We are always very competitively priced. I believe that to a certain degree, you get what you pay for. My desire is that your experience with us is one you will enjoy, and would be excited to refer us to others. Our service to you is not only to provide you with competitive rates and costs, but to handle your transaction with the personal care and professional treatment you deserve.

What about the horror stories we have all heard about?

At the last minute, the loan is suddenly not approved, or the rates and costs change dramatically? Or worse yet, the loan falls through entirely, and the transaction falls apart? Unfortunately, it does happen. In todays market there are many unpredictable turns of events. This is why it is so important to trust your business to a professional, not a bargain basement operation.  Our committment to out clients is that we will do everything possible not to make this happen and you will not have surprises at the closing table. The government has put paramaters in the good faith estimates to help protect the client but banks are not required to disclose their commissions where mortgage brokers are so things may not be as transparent as they seem.

How do you know I will do a great job for you?

Almost 100% of my business has been referred to me by either a satisfied former client, or an experienced, high quality realtor - Chances are, you did not stumble across my website by accident, as I do not promote myself blindly to the general public. While most mortgage loan officers spend their time mass marketing and looking for new business from just anywhere, I devote my time and energy to my clients only, educating them, discussing the best mortgage loan options for each individual situation, and taking care of details to ensure that the mortgage loan process runs as smoothly as possible.

Questions You Should Ask Your Mortgage Loan Officer:

Do they charge for a pre-approval? (beware - they are doing this to hold "bond" money from you so that you feel obligated to continue doing business with them)

Do they have the capability to offer many different investors rates and products, or just their own?

Do they have a dedicated team working for you?

The answers to these questions should tell you what caliber of a person with whom you are considering entrusting the largest financial transaction you will make in your life. Please call or email us at your convenience.
Last Updated on Saturday, 17 March 2012 11:57