How much is your brokerage fee?
work we have to do. Here is a list of minimum amount of fees...
Origination fee: 0.5% ($3,000 minimum)
Processor Fee: Included
Lender Fee: Included.
Attorney fee: Included
For a free Good Faith Estimate, please contact us.
What other fees will I have to pay to get a loan?
Typically, a borrower has to pay underwriting fee, document preparation fee, and attorney fee. These fees are charged by lender and disclosed in good-faith-estimate ($1500 estimated). Borrower also will have to pay fees charged by title charges fees such as escrow fee, document preparation fee, and attorney fee($500 estimated). Lender will require property appraisal ($400) and survey ($350). Lender may require borrower to have about six months worth insuranceand tax payment in reserve.
Realtor first or lender first?
Chicken first or egg!! While it is useless to find a home without being able to pay for it, similarly, cash in hand doesn't guaranty our dream home. However,home buyers feel more in control when they have a pre-qualification letter in their hand. Moreover, real estate agents and home sellers are more willing towork with a buyer when they learn that buyer is serious and has gone through financing process, which is one of the most important steps in homepurchasing.
What do I get for doing business with you?
Doing business will save you money and we will treat you with respect. That is our promise. Whether you are financing through us or just shopping around.Whether you are our best client or someone who possibly can’t benefit us in any way. We promise to treat you with respect.
How does it work?
First we offer free of charge and no obligation advice. Should you decide to finance though us, you submit a loan application. Once we receive you application, we review your credit report and provide you with a Good Faith Estimate (estimated total cost of your financing) and Truth In Lending (total costof financing at the end of term, 30 years or 15 years). At the same time we will order Title Insurance commitment, appraisal, home insurance documents,verification of employment, verification of rental (if applies), and various other information to present you to lenders as a qualified borrower. Once yourapplication is approved by lender, we will schedule your closing date and time. Should anything change, we will keep you informed immediately.
How to reduce out of pocket cost?
Unfortunately, interest rate is not your only cost to finance your home. There are other costs called financing cost. While our low fee reduces out of pocket cost, we have no control over lender’s fee, closing agent’s fee or any other third party’ s fee. So, if you wish to pay less from your cash reserve (out of pocket), we can help you keep this cost at minimum. In suck situation, we advise that you contact us before submitting purchase offer.
How to get low interest rate?
Basic principle in home financing is that higher the risk, higher the interest rate. If you can assure lender that you will make your mortgage payments on timeevery time, lender will loan you money at a lower interest rate since you are a low risk borrower. Unfortunately, you can’t beg lenders to trust you, write letters in expensive pink paper, take them to dinner, or threaten them. Fortunately, there is something you can do. Keeping higher credit score if the first thing to do (see how to better your score). Keep good record of all major financial activities for at least past two years. Let lender pay your tax and insurance. Interest rate tend to increase if you borrow too less or too much. Borrowing between $100,000 and $400,000 usually doesn't’t increase interest rate.Paying pre payment penalty can reduce your rate. Last but not least, save money to make down payment. Down payment will reduce your interest rate. Usually, 30% down results maximum amount of rate discount. After 30%, usually, it doesn’t make any difference. By the way, watch for the amount you are borrowing. Borrowing less than $100,000 can cost you extra. Shorter term mortgage, such as 10 years, 15 years, or 20 years, can reduce your rate too.
What is your specialty?
Our specialty is that we treat our clients with respect and save them money.
What is APR?
APR stands for Annual Percentage Rage. Basically, APR helps borrower understand how much a loan is actually costing. APR is not interest rate. APR is calculated by adding items such as interest rate, points, broker charged fees, lender charged fees, escrow agent charged fee, and more. Monthly payment is calculated based on interest rate not APR. To view a list of APR items, please visit APR list.
Do I need a local loan officer?
Not exactly. Anyone licensed to originate loans in the state of Texas is able to originate loans anywhere in the state of Texas. One can have an office inDallas, TX and finance a home in Houston, TX.
My bank or mortgage broker?
It depends. Retail banks usually offer retail price and require banking relation. They are also limited only to their own mortgage product. Mortgage brokerswork with several lenders and offer wholesale price. Additionally, mortgage brokers have access to many more products than individual banks. As a result,borrowers can shop many lenders with one credit pull while multiple individual banks will require multiple credit pull. Many mortgage brokers are more flexiblethan banks. With mortgage brokers, borrower's interest rate won't go up because they closed their account with their bank.