Mortgage & Refinance FAQ’s

Yes, Federal Statutes in the area of Truth and Lending provide your receiving a written Good Faith Estimate from any lender, however most Good Faith Estimates usually change by the time you get to the closing table, along with many other surprise and last minute extra hidden charges.

Generally most people overlook the actual meaning of a Good Faith Estimate., . . .

Good Faith, means Hope. . . . . . and Estimate, means Approximately!

Therefore, what is really being stated here is that the proposed lender cannot legally be held accountable for any accuracy at this juncture.

Please also appreciate that anyone giving rates quickly over the telephone without consideration or verification of your personal facts cannot possibly ascertain your acceptance for funding nor accurately provide you with a guaranteed or locked in interest rate.

Before any lender can provide you with this information the following elements need to be provided and considered:

1. Purpose and the type of loan needed along with the desired term and the dollar amount needed.
2. Income to Debt Ratio:  The overall total of your household income and what do you earn verses what you pay out.
3. The Loan to Value Ratio (LTV):  What percentage of money are you borrowing against the actual value of your proposed or presently owned property.
4. Your Employment and Residential History:  Looking for stability by showing long term employment and residence.
5. Overall Credit Rating Scores: (Beacon Scores):  How the three major credit bureaus rate you in terms of your paying your bills in a timely manner.
6. Your Income verses Debt Ratio (IDR):  How much money is being verifiably earned against what is accurately needed to cover all your present monthly bills.
7. Updated Property Appraisals:  Generally only good for ninety days.
8. Present Level of Residential Equity:  The amount of money that can be borrowed in consideration of the current appraised value in contrast with your remaining loan balance.
9. Your amount of down payment:  The more money you put down lessens the amount of risk to the lender which translates to a lower rate offering.
10. Will you be including taxes and insurance into your monthly payments, or will you choose to pay them separately?

As you may now appreciate, without this important information any interest rate offered without reference to these basic elements would be at best unreliable.

Once your official employment is verified, our divisional agents will share in detail exactly what incentives are being offered above the general public offerings.

As previously mentioned, getting the lowest possible rates available at the time of your application will give you plenty of time before the actual closing to make a more informed decision; without being under pressure or any obligation. Please also appreciate and remember that your Supplemental Benefits Programs Services are free of charge, as we do not act as brokers or middlemen.

In addition, your being a verifiable part of a large official employment group gives you a more powerful edge to high volume lenders, than if you went on your own as a single private borrower.

We are sure you will agree that this example holds true with many products and services in the retail world today, as the larger buying groups usually get the lowest pricing and the best incentives.

Another reason is, we constantly monitor all major lenders across the United States as they frequently change their basic rates and incentives to stay in competition with each other. This way you are positioned to interact with the lowest rate major lenders at the time of your application.

When dealing with a proposed seller, make sure your preliminary sales agreement includes these protective provisions:

1. That the agreed selling price be guaranteed against any change for at least sixty (60) days to give you ample time to secure a mortgage.
2. That any moneys required as a down payment be only put into an Escrow Account, which ensures a complete refund in the event of your inability to be funded.  In these tough economic times, you don’t want to leave yourself in a position to have to sue a proposed seller or real estate agency to retrieve your down payment!
3. Always consult with a real estate attorney of your choosing to ensure your best interests, instead of just the seller. If you wish to use our divisional appointed attorneys at a much lower rate, just call and let us know.
4. Beware of allowing any agency to repeatedly run your credit unless you are first totally satisfied and confident with the information and process. You may opt to run your own credit without an inquiry reduction of your Beacon Scores, otherwise you will loose points off of your score each and every time you allow others to run your credit. You should keep a recent copy on hand to show a proposed lender and then give your permission to have your credit run only when you are satisfied with the offered interest rate.
5. When considering the offered price of a new residence, it is always recommended to compare the general pricing of other homes in the same area. Most reputable real estate agencies can provide this information for you or you may go on line and do your own research.
6. You also may consider asking the seller for a copy of a recent written appraisal if needed, which may be accepted by the lender and therefore save you the need of getting one yourself and saving the cost.
7. It is always wise to seek out a professional inspector to do a walk through of your proposed residence before the closing. These professionals are trained to look for items that you would never think of that might need repair or adjustment by the seller before you agree to purchase. Also many buyers today overlook a mold inspection, which if present can have considerable effects on your health over time and result in very costly repairs.
8. Lastly, please know the golden rule of the corporate world: