Why use
me to help with your loan?
I take each
customer's loan very personally, as though I were financing my own
home. You can always reach me and if you do have to leave a message I
will always return your call immediately. Some lenders leave their
customers guessing about the status of their loan, but I understand just
how stressful buying a new home (or even refinancing) can be and I will do
everything in my power to ensure that you feel informed and in control
of the process, every step along the way.
I work with numerous lenders to get you a loan with the
best possible rate. I shop for you to find the best rate for the kind of
loan that fits your needs. And if you have had difficulties obtaining a
loan elsewhere, I can assist you with a program to improve your credit
profile so that I can do that loan for you.
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Why not just go to
a bank?
When you go to a bank you are dealing with one lender,
if they say "no" you must start the process again with a different bank.
You can continue to do this and hope that you find the loan you are
looking for and the rate you want. However, there are hundreds of lenders
throughout the country and I have access to more loan programs than a bank
that just offers one source of funds. The advantage of coming to me is that I do the shopping for
you. You apply one time and I find the lender to match your
particular needs. And—especially important—your credit report is only
pulled one time. Therefore, there is no chance of your credit score
getting lowered due to inquiries from more than one lending source.
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Can I get a loan
even if my credit isn't great?
Yes! Depending on your credit scores and other credit factors you can
still get a loan. Sometimes you will have to put more money down or take
less money out than you would with good credit, however, you can still get
a loan. The better your credit is, the better interest rate you will
get and the less money you will need to put down when buying a home. This
applies as well to refinancing, the better your credit is, the better
interest rate you will get and the more money you can pull out of your
home. Again, don't let credit challenges scare you, I will do my best to
find the best program available for your situation
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How do credit scores
work?
In the past few years, lenders have been
using automated credit scores to determine if a borrower's credit history
meets lender guidelines. You may have heard this referred to as a "FICO"
score. Though credit scores alone do not constitute the only
decision-making factor, they are an important factor within the overall
approval process. Automated credit scores are able to look at the
factors of a credit history and predict whether a particular consumer
represents a favorable or unfavorable risk. In general, a score in
the 670 range and up is looked at as a very favorable score for lending
purposes. However, if your score is lower than this there is no
reason that you will not be eligible for an excellent loan program.
The most important factors involved in credit scores are: 1) Payment
history, especially if any late payments in the past 12 months.
Late mortgage payments are looked at as a higher risk than revolving card
late payments. 2) Amounts owed on credit accounts. If you have
several revolving cards that are close to their credit limits, this could
lower your credit score. 3) Credit Inquiries; It may not seem fair,
but if you have been out shopping for a new car, opened a new department
store account, or applied with several different lenders for your new home
loan, this could negatively affect your credit score as the scoring system
thinks you may be in the process of over-extending yourself.
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What
does it mean to "lock in" a rate?
When you apply for a loan you can wait for a while to see if interest
rates go down. This is known as a "float." At some point during the loan
application and approval process you as the borrower will have to decide
to "lock in" the rate, and the rate for your loan will then be the current
rate on the day that you lock in. Basically, the decision to float or lock
relates to how willing you are to gamble that rates will be lower tomorrow
or next week, etc. It usually makes sense to lock in your rate fairly
early in the loan process, but it is important to understand that no
lender can absolutely guarantee that rates will not drop (or increase)
between the time you lock in and when you close on your loan.
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What is an
"escrow" account?
An "escrow," or "impound," account is maintained by your lender to cover
the taxes and insurance that must be paid each year for your home. For
most loans the lender is provided with the information about the property
taxes and homeowners insurance that will be due annually. The lender then
divides the total into 12 equal amounts and adds this to the amount that
is due on your loan each month. When the taxes and insurance are due the
lender makes the payment on your behalf. If you sell your home, any funds
leftover in the escrow account will be refunded to you.
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What is "PMI?"
"PMI" is Private Mortgage Insurance. When you purchase a home, if your
down payment is less than 20% the lender will require that you pay for PMI.
This insurance policy is taken out on behalf of the lender, to protect the
lender's investment in the event that you default on the loan. It is
normally included in your monthly loan payment, along with your normal
homeowner's insurance and property taxes.
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Do I have to
document my income?
I have programs available for those who cannot document their income
or job history for the past 2 yrs. The program and loan terms we go
with for your loan will depend upon credit and other factors. There
are lending sources
who let you state your income and job/business without verification, some that let
you use bank statements as income documentation and others that let you
get a loan with no income stated at all. The more you move away from
stating your income, the higher risk you are and therefore the interest
rate moves higher because of that risk.
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What's involved in obtaining a loan for investment property?
Generally, loans for investment property are similar to those for a
home purchase, except that the lending source will require a higher down payment
and the interest rate will be slightly higher. This is due to the higher
degree of risk on a loan for investment property as opposed to a home
loan. There are also "stated" income loans available for non-owner
occupied properties.
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Can you do Second
Mortgages?
Yes! I can help with you with a second mortgage or a home equity line
of credit. This is often an excellent strategy for financing other major
purchases, as interest paid on these types of loans is often tax
deductible. (Check with your accountant to determine if interest on such a
loan can be deducted on your own taxes.)
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Can you help
me consolidate my bills into one loan?
Yes! Using the equity in your home, as discussed above, is a terrific
way to roll all your credit card payments into one monthly payment. The
amount you pay each month is typically less than you would pay on your
credit cards, plus there may be tax advantages as discussed above.
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Free, No Obligation
