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What makes you different from all of your competition?
Well, believe me, this the question that everyone wants an answer to, even if they never ask it. Again, we are a small, locally owned and operated company whose primary source of new business/income is from either past clients or referrals from past clients. When you deal with us, you will typically be dealing with someone who is a part owner of the company, not some lacky in a call center that just started his mortgage career last week and will probably be out of the business next week.
We have been in this business for many, many years now and have whethered all of the ups and downs (although the current market is as bad as we can ever remember), and are committed to being here for the long haul. We are not in the business for the "quick buck" that so many other people got into it for. We are here to grow, steadily and surely, through the good times and bad. I know that most other companies will say close to the same thing, but without any REAL meaning behind it.
We have a clear understanding that YOU, our client, are the reason we earn our paycheck every week now, and in the future, whenever you need any type of mortgage finance, or you refer a friend or family member. That is our committment to you - The best experience, rates and customer service anywhere! Give us a try. Again, if we feel that it is not the best time to do a loan for you, either by adverse market conditions, property values or credit difficulties, we'll tell you and come up with a game plan to get you to where you want to be.
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You pulled my credit and now my phone is ringing off the hook with other lenders and my mailbox is full of mortgage offers - what is happening to me?
Unfortunately, you are now considered a "trigger lead". When you first applied with us, we should have told you that would happen and offered to "opt you out" with the credit bureaus. If we failed to do that, I sincerely apologize and will try to make it up to you.
You see, when a mortgage company pulls a mortgage credit report on you, the credit bureaus then sell your name and certain information to virtually any company who is willing to pay for it. You have become a "trigger lead". Most of the larger companies with large call centers buy this data and either call you at all hours or bombard your mailbox with so called "pre-approved" offers that are so far below market rate it's laughable.
Fortunately, these days a lot of these companies and banks are either going out of business or are not aggressively marketing for new business. You can stop this all of this by simply "opting out". With your permission, we will either do it on your behalf, or you can do it yourself by going to www.optoutprescreen.com.
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What is the difference between pre-approval and pre-qualification?
The pre-approval process is much more complete than pre-qualification. For pre-qualification, the loan officer asks you a few questions and provides you with a pre-qual letter. Pre-approval includes all the steps of a full approval, except for the appraisal and title search. Pre-approval can put you in a better negotiating position, much like a cash buyer.
We have a direct link to Fannie Mae, Freddie Mac, VA and FHA here, in out office, so when we run your loan application through the automated underwriting, our pre-qualifications are virtually as good as a pre-approval. We need to back up all of the claims that we have made, on your behalf, on the application in order for us to upgrade your pre-qualification to a formal pre-approval and issue a committment letter.
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When does it make sense to refinance?
Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts. The decision to refinance can be difficult, since there are several reasons to refinance. However, if you are looking to save money, try this calculation:
Calculate the total cost of the refinance
Calculate the monthly savings
Divide the total cost of the refinance (#1) by the monthly savings (#2). This is the "break even" time. If you own the house longer than this, you will save money by refinancing.
Since refinancing is a complex topic, consult a mortgage professional.
We have plenty of calculators on our site, but the best way to know for sure is to either call us or apply online with us so that we can run "hard" numbers instead of estimates. We are not in the business of doing a loan just to do a loan. We want to do a loan that makes the most sense to your, in your situation, and if we can't do it now because the market is not favorable, we will put you into our "track a rate" program so that we will contact you once the market conditions improve. Or if we cannot get your loan approved for credit reasons, we have a strategy in which we will attempt to "clean up" your credit to the point where we can get your loan approved!
Call us today, we are consumers just like you, and we know how you want to be treated. We want a long term relationship with every client, not just a quick buck.
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What is a rate lock?
A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock.
The decision to lock your loan is up to you, and only you. We will give you advise, based on our best judgment and experience however. Sometimes, if you decided to lock in your loan, and the market turns dramatically in your favor, we can re-negotiate with the lender to offer you a better rate.
Again, we do not work for any particular lender - we work for you, and no one else! We want your business for life!
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What is the difference between a mortgage broker and a lender?
A mortgage broker counsels you on the loans available from different wholesalers, takes your application, and usually processes the loan which involves putting together the complete file of information about your transaction including the credit report, appraisal, verification of your employment and assets, and so on. When the file is complete, but sometimes sooner, the lender "underwrites" the loan, which means deciding whether or not you are an acceptable risk.
A lender, on the other hand, will do all of the same things and if something comes up that puts you "outside" of their guidelines, you will get a call or a letter stating that they either cannot do your loan or that the terms are different.
That is a HUGE difference. You are the reason we receive a paycheck this week or not. YOU are the reason we are here. We work for YOU and no one else. If we send your loan to a lender whom we have a wholesale relationship with, and they either change things or turn you down, we will find another lender that will get you the loan that you deserve.
You see, most of the larger lenders have a retail side, that you can deal with directly and also have a wholesale side that we deal with on your behalf. Typically, the lender's retail side will have a hefty profit built in whereas we will have access to the better rates, which will be passed on to you. We obviously have to earn a fair profit, but we, as a broker, will always offer your a better deal in the end. That's our promise to you!
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Will I save money going directly to a mortgage lender?
Not necessarily. In fact, if you are a reasonably astute shopper, you will probably do better dealing with a mortgage broker. Mortgage brokers do not add any net cost to the lending process, because they perform functions that would otherwise have to be done by employees of the lender. Furthermore, because mortgage brokers deal with multiple lenders -- in a typical case, 25 to 30, sometimes more (we deal with over 75) -- they can shop for the best terms available on any given day. In addition, they can find the lenders who specialize in various market niches that many other lenders avoid, such as loans to applicants with poor credit ratings, loans to borrowers who do not intend to occupy the property, loans with minimal or no down payment, and so on.
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What is a full documented loan?
Both income and assets are disclosed and verified, and income is used in determining the applicant's ability to repay the mortgage. Formal verification requires the borrower's employer to verify employment and the borrower's bank to verify deposits. Alternative documentation, designed to save time, accepts copies of the borrower's original bank statements, W-2s and paycheck stubs.
It seems as if virtually every program available today (much fewer than 2001-2007) is underwritten automatedly, which means what ever Fannie Mae, Freddie Mac, FHA or VA require as documentation is all we need. Usually the results of the automated underwriting will only require a current paystub and/or last year's W-2 for income. Often times, they do not require any documentation of assets at all.
Give us a call or apply online and we'll take a closer look at your situation, and even run it through the automated underwriting system, to see what we will need. Again, we are a small, locally owned and operated company and have been in this line of work for many, many years. We are not a large call center in some far away place - we are here, like you, in the real world, and sincerely value you giving us the opportunity to earn your business.
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What are the other types of loans?
Stated income/verified assets: Income is disclosed and the source of the income is verified, but the amount is not verified. Assets are verified, and must meet an adequacy standard such as, for example, 6 months of stated income and 2 months of expected monthly housing expense.
Stated income/stated assets: Both income and assets are disclosed but not verified. However, the source of the borrower's income is verified.
No ratio: Income is disclosed and verified but not used in qualifying the borrower. The standard rule that the borrower's housing expense cannot exceed some specified percent of income, is ignored. Assets are disclosed and verified.
No income: Income is not disclosed, but assets are disclosed and verified, and must meet an adequacy standard.
Stated Assets or No asset verification: Assets are disclosed but not verified, income is disclosed, verified and used to qualify the applicant.
No asset: Assets are not disclosed, but income is disclosed, verified and used to qualify the applicant.
No income/no assets: Neither income nor assets are disclosed.
These type of loans were easy to find between 2001 - 2007, since it seemed like most lenders could care less, however, today, is a different story. Any other loan documentation type other than Full Doc, although there are still some out there, are very difficult if not impossible to qualify for.
What we at Advantage Capital Mortgage like fully analyze everything to completely rule out a Full Doc loan before we delve into the No Income Verification doc type. Often times you'll be surprised at what we can qualify you for. You see, we have been through many ups and downs and know how to get even self employed people to qualify for fully documented loans. Just because you are self employed or are on commission and have been turned down by another lender, doesn't mean that we won't be able to help. We have been in this business for more than most and are truly one of the few "pros" out there these days.
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What is a good faith estimate?
It is the list of settlement charges that the lender is obliged to provide the borrower within three business days of receiving the loan application.
Our good faith estimate will ALWAYS show more fees than you actually pay. You see, so many other companies out there, when asked, will send you a good faith with virtually no fees on it. Why do they do that? Well, just like the name of the document says, its a good faith ESTIMATE. Then, after you have waited a month or more to close your loan with them, surprise surprise. Hopefully you have never had that happen to you, but we have helped a ton of clients who have.
You see, this business is like any other, for the most part. We charge a fair fee (paid by either you in the form of points or the lender pays us directly) and want to earn a customer for life. While you might be able to secure a slightly better deal at another lender, who knows if that will be the "final deal" when all is said and done. With interest rates on a roller coaster ride these days, you don't have time to risk a possible "bait and switch" by one of these type of lenders.
Here's the bottom line. When we send a good faith estimate to you, that will be the absolute maximum that the loan will cost you, period. Most of the time (like 99.9%) of the time, in the end at settlement, the costs are quite a bit lower, sometime substantially lower from where we started. We don't send out bogus good faith estimates just to get you to commit to us - if that were the case, we would not get most of our business from past clients and referrals.
We are here, for you, and intend to make you a satisfied customer for life!
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What is a conforming loan?
A loan eligible for purchase by the two major Federal agencies that buy mortgages, Fannie Mae and Freddie Mac.
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What is a jumbo mortgage?
A mortgage larger than the maximum eligible for conforming purchase by the two Federal agencies, Fannie Mae and Freddie Mac. Currently, the Federal Government has temporarily raised the maximum conforming loan limits from $417,000 to as high as $729,750, depending on where you live. Give us a call or send us and email and we will check, but hurry up, these temporary limits are due to expire on 12/31/2008!
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What are points?
It is an upfront cash payment required by the lender as part of the charge for the loan, expressed as a percent of the loan amount; e.g., "2 points" means a charge equal to 2% of the loan balance.
When doing a refinance, if you choose to get the best rate posssible and "buy down the rate", points will be charged to you and paid out of the proceeds of the loan.
When doing a purchase, if you choose to get the best rate possible and "buy down the rate", you must either bring the points with you as part of the closing costs, or the seller can pay them on your behalf.
In the current market (buyers market), sellers will do virtually anything for a buyer, including, often times, paying most or all of the closing costs and points.
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What is a pre-qualification?
This is the process of determining whether a customer has enough cash and sufficient income to meet the qualification requirements set by the lender on a requested loan. A pre-qualification is subject to verification of the information provided by the applicant. A pre-qualification is short of approval because it does not take account of the credit history of the borrower.
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