Q - Why are rates often different than what’s advertised?
A - Interest rates are very important, but there is so much more to determining which loan program and which lender to work with other than solely just the interest rate. What are the fees? Does the loan have PMI? Is it a fixed rate? What is the true overall cost of the mortgage? Low advertised interest rates you hear on the radio or see on TV or the internet many times have incredibly high fees to go along with them. First Integrity Mortgage believes in earning business through relationships and quality service. We educate our borrowers and are very transparent about all costs associated with the transaction and all the details about the programs we offer.
Q - Will you match a Lower Rate?
A - We get this question a lot and certainly understand the motivations behind it.
Mortgage rates are set by markets, and the big secret is there is little we can do to deviate from them. You have to beware when getting a rate quote over the phone because there are many factors that go into what is a “true” rate quote. Some lenders, unfortunately, will quote you their lowest rate right off the bat without qualifying you. We quote “real” rates here, which means that we will ask you appropriate qualifying questions to make sure we are quoting you a rate we can actually deliver.
Q - Can I pay this loan off early?
A - Absolutely, whether it be a consistent $25/$50/$100 per month more added to your payment, or winning a lump sum in the lottery, you may certainly pay off your mortgage loan early without fear of a pre-payment penalty. If you’d like to see the effects a voluntarily increased payment each month can have on your mortgage loan, please visit our website at www.FirstIntegrity.com to access our amortization calculator. Under Mortgage Calculator you will see “Mortgage Length Calculator” where you can input your mortgage parameters and see how much time your increased payment will eliminate from the life of your loan.
Q - Why are my closing costs so high?
A - There are a number of different people and services involved in what constitutes your closing costs. There is the cost of processing your loan which includes myself, our loan coordinator, our underwriter and the many hours spent making sure your loan is done to the highest standards ensuring no future issues beyond the closing date. There is also the Independent appraiser who gives both us and the bank the true market value of the property ensuring you are not either paying too much or receiving an inflated value that could cost you later. Lastly, there is the title company. Not only are they the third party who handles all the disbursements and payment of your loan proceeds, they also examine, clear and correct everything on the title to your home and then insure against past issues that may resurface once you own the home.
Q - How much can I afford?
A - Having a budget in place for your monthly housing expense is one of the most important aspects of buying a home. Even if a lender can qualify you for a property, the payment may exceed your comfort level for a house payment. Exceeding your comfort level can cause distress, financial problems and possibly foreclosure. Make sure you are discussing your financial situation with your lender to help you coordinate a payment, which fits your present, and future needs.
Q - Why does it take so long to close?
A - Unfortunately there is nothing “quick” when getting a mortgage these days with the new regulations of TRID that all lenders are required to follow. There are several people involved in a mortgage transaction that could add to delays in the process. Title companies, insurance agents, realtors, inspectors, and appraisers just to name a few. The amount of documentation that is required seems to be overwhelming to most so it is imperative to always be in communication with your loan coordinator and loan officer to make sure we have everything we need so that we can meet the dates set forth in the sales contract.
Q - Why do you need so much information from me?
A - When purchasing or refinancing a mortgage, we are required to document everything that is submitted on the loan application. This is why it is very important to have a complete loan application up front so that we can set the proper expectations and documentation needed in the beginning rather than coming back to you a week before closing needing more documentation. I say that, but unfortunately, sometimes documents that are submitted in the beginning lead to more questions or possible documents needed as we move through the process. Just note, we do not ask for anything that we do not need. Sometimes you will shake your head and ask “Why” to yourself. This is completely normal. Please understand that you are not alone.
Q - Are there additional inspection requirements for Government (FHA and VA) programs?
A - The only additional inspection that is required is a termite inspection on VA loans. While this is the only required inspection, others inspections may be necessary but on a case-by-case basis. Sometimes appraisals may warrant for additional inspections to be completed while other times, inspections are specified in the contract. It is important to check with your loan officer and agent on the specific inspections necessary for your particular loan.
Q - What could delay approval of my loan?
A - There are several reasons on why a loan approval could be delayed. One of the most common reasons for a delayed closing is a change in the credit profile. It’s always wise to keep your credit the exact same as when you are initially preapproved. Do not open any new accounts, become delinquent on any accounts, etc. Another reason an approval may be delayed is if the appraisal is completed but needs repairs. Certain programs require that the property meets certain conditions. If an appraiser notes that it does not meet guidelines, repairs must be made, and could potentially push back closing. It’s always important to stay in constant communication with your loan officer if you have any questions or concerns.
Q - Why aren’t there more loan options?
A - In most circumstances, you should have multiple loan programs/options available to choose from and a great loan officer should inform you of all your options, not just the most convenient program for the loan officer to present. Many times the most appropriate program/option may be obvious, but other times, there may be a less obvious option you may be unaware of that can better fit your needs.
Q - Do you issue a pre-qualification or do you issue a Pre-Approval supported by documented evidence of income and assets?
A - At First Integrity we try not to issue a pre-qualification. We issue a Pre-Approval. We get your income documentation up front so that when you go to purchase your home you can have the confidence that your loan will be approved with as few problems as possible. And here is why, a pre-qualification- is based on just pulling your credit score and seeing that your score qualifies you for a product, but is not based on any actual income documents such as tax returns or pay stubs. On the other hand, with a pre-approval, credit has been run, your income documents have been reviewed to make sure we are far more accurate at calculating how you qualify. The benefit you will notice is with a pre-qualification most Real Estate Agents will not work with you since your income has not been reviewed and there is still a potential for decline. With a Pre-Approval, your Real Estate Agent and you can put that dream house under contract with confidence.
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