Choosing your Lending Source
This could be the hardest part of loan shopping. You might think you’d been shopping for a used car after to talking to other lenders, brokers and bankers. We recommend that you describe briefly your situation to us and then let us suggest some options for you. We will make you feel very certain and secure that we are working with your best interest in mind.

Bait and Switch
Watch out for rates that sound too low. Unfortunately there are some brokers out there that will quote a rate that is not obtainable. You then apply and the broker pulls the old bait and switch. Remember, if it sounds too good to be true, it probably is. The same is true for closing costs and fees. These are also sometimes misquoted to get you in the door.

Program Selection
Be sure to choose the proper type of financing. For instance, let's say you buy a home that you plan to live in for the next 15-20 years. Fixed-rate loans are 7%, while adjustable rate mortgages (ARMs) are starting at 4%. You might think you would save a nice amount of money on the ARM , but probably only for the first 2 years. You will most likely pay a much larger amount for the remaining term of the loan and spend a lot of extra money during the life of the loan.

No Points or No Deal
Getting financed with Zero Point programs has been very popular over the past several years. In fact, many borrowers demand it. Remember that a point is 1% of the loan amount. Sometimes it may benefit you to pay for points. Generally on a 30 year fixed Mortgage, one point will save you at least 1/4% of interest. Your 1% investment will be recouped about 5 years over a 30 year term, therefore you will gain approximately 6 times your investment back over the life of your loan.

Up-Front Fees
Mortgage brokers are paid on commission for funded and closed loans only. The commission is usually paid by the lender. Sometimes it is paid by the borrower out of a portion of the points the borrower has paid to the lender. Regardless of how a commission is earned, it is only earned when a loan is completed entirely. You should never pay any fees up-front unless they are for certain outside services such as a credit reporting company or an appraiser.

Closing Costs
There will always be some closing costs involved in your financing. Even though you may not pay any costs on a No-Fee loan, someone is paying the fees. On a Zero-Fee loan, you are simply given a higher interest rate to absorb the cost of the loan, and the fees are then paid by the lender. Sometimes this is a very effective way of financing. You really need to weigh all of your options and demand the best advise from your loan expert. We are ALWAYS HERE TO HELP if you have questions.

Finally...
Feel free to CONTACT US if you have any questions, concerns or problems. If you’re ready to begin the loan process, simply CLICK HERE and choose the loan application that best suits your needs at this time.