October 19th, 2016

10 Things to Know During the Mortgage Loan Process – Question 10 – Where Will I be Closing, and How Much Do I Bring to Closing?

Posted by at 8:11 am

This is the last in a series of posts of 10 things to know during the mortgage loan process. Where will I be closing, and how much do I bring to closing? Question #10 is, where will I be closing, how much do I have to bring to closing, and can I bring a personal check? The answer is, closing will usually take place at an escrow company’s office, and that office is always listed on your residential purchase and sale agreement or sales contract – it’s usually who you made your earnest money check out to. Sometimes we will arrange for a mobile signer to meet you at your home or your office if that’s more convenient for you, but closing at the escrow office is more efficient for your loan process. To know how much to bring to...
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October 19th, 2016

10 Things to Know During the Mortgage Loan Process – Question 9 – How Will I be Kept Updated on the Status of my Loan?

Posted by at 8:09 am

This is the ninth in a series of posts of 10 things to know during the mortgage loan process. How will I be kept updated on the status of my loan? Question #9 is how will I be kept updated on the status of my loan? The answer to that is you will receive emailed status updates whenever we reach a particular milestone – appraisal ordered, appraisal received, loan approved, documents ordered, etc. Additionally, you will receive an email every Friday from my processor with a summary of the status of your file headed into the weekend. Our goal is to constantly communicate the status of your loan to you so you’ll never have to wonder where you are or what’s next. In the event you do have a question, you are welcome to call and ask. You’re always welcome...
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October 19th, 2016

10 Things to Know During the Mortgage Loan Process – Question 8 – Is the APR the Same as my Interest Rate?

Posted by at 8:04 am

This is the eighth in a series of posts of 10 things to know during the mortgage loan process. Is the APR the Same as my Interest Rate? Question #8 is regarding APR, which is quite often mistaken as your interest rate. This will be shown on your initial disclosure, and quite often the APR is higher than the actual note rate, or the actual quoted interest rate. There are two rates on the initial disclosure. The note rate is the rate used to calculate your monthly payment based on the figures shown. You may or not be locked at this rate. The “APR,” or annual percentage rate, is different than your note rate, or the rate shown on your initial disclosure, because the APR, in addition to interest, includes some of the additional costs of obtaining your financing. Simply...
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October 19th, 2016

10 Things to Know During the Mortgage Loan Process – Question 7 – Once I Sign the Application, am I Committed to Borrow the Money?

Posted by at 8:03 am

This is the seventh in a series of posts of 10 things to know during the mortgage loan process. Once I sign the application, am I committed to borrow the money? Question #7 is, once I sign my application, am I committed to borrow the money? Or a lot of people feel like once they’ve signed the application, they’re obligated to borrow. That is absolutely not the case; in fact, none of the documents that you have received from me until you’re actually at closing and sign your note, are contractual. So all we’re doing with an application is qualifying you – putting you in a position to buy a home. In other words, this is to get you pre-approved for the mortgage loan that you’re applying for. Previous Question – Next Question As always, should you have additional questions, please contact...
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October 19th, 2016

10 Things to Know During the Mortgage Loan Process – Question 6 – What are Origination and Discount Points?

Posted by at 8:02 am

This is the sixth in a series of posts of 10 things to know during the mortgage loan process. What are origination and discount points? Question #6 is, what are origination and discount points? Briefly speaking, origination and discount points are both a percentage of your loan. If we’re talking about 1 point, it would be 1 percent of the loan amount. If your loan amount was $200,000, then your origination or discount point would be $2,000. The origination point and discount point will affect your mortgage loan interest rate, usually by a 1/4 of a point for each point on fixed rate loans, and usually by 3/8 of a point on fixed to adjustable rate loans. By paying origination and discount points, you get a lower interest rate. Or, you could also ask us about loans with no origination and...
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October 19th, 2016

10 Things to Know During the Mortgage Loan Process – Question 5 – Do you sell your loans?

Posted by at 8:00 am

This is the fifth in a series of posts of 10 things to know during the mortgage loan process. Do you sell your loans? Another way of asking that question is, who services or collects the payments, my loan? Question #5 is do you sell your loans? Another way of asking that question is, who services my loan? The answer is, I’m both a mortgage banker and a mortgage broker. Most of my loans are closed as a mortgage banker, which means that I originate, we process, we underwrite, we close, and we fund your loan through my office. That gives us total control of this transaction of helping you. I’m able to go out and shop your loan with multiple investors to make sure that we obtain a competitive interest rate for your loan. After closing we may choose to...
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October 19th, 2016

10 Things to Know During the Mortgage Loan Process – Question 4 – How and When do I Lock my Interest Rate?

Posted by at 7:59 am

This is the fourth in a series of posts of 10 things to know during the mortgage loan process. How and when do I lock my interest rate? Fourth question: What is meant by the term, “locking my interest rate?” And then, when and how do I lock my interest rate? Locking your interest rate refers to guaranteeing a specific interest rate for a specific period of time. That period of time is called the lock period. The lock period guarantees your rate as long as your loan closes and funds prior to the expiration date of your lock. If your closing is delayed beyond your lock expiration date, you could be exposed to higher market rates or lock extension fees, so it’s always good advice to lock for a period longer than you need or longer than your actual...
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October 19th, 2016

10 Things to Know During the Mortgage Loan Process – Question 3 – Who Orders the Appraisal, and When Is It Ordered?

Posted by at 7:53 am

This is the third in a series of posts of 10 things to know during the mortgage loan process. Who orders the appraisal, and when is it ordered? We order the appraisal for you. If your home is new construction, the appraisal will be ordered before the home is complete, and the appraiser will revisit the home just before funding to confirm it’s complete. To answer the question, when is the appraisal ordered, we place the order immediately after you sign the initial disclosures giving us authorization to proceed, and we list you or your Realtor as the contact for the appraisal. We do this to get the appraisal order going and “on the books” to avoid a delay in getting the appraisal started. However, we don’t want you to incur an appraisal charge if the house fails your inspection,...
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