Questions I wish were Frequently Asked

The rate quoted in the local newspaper is .25% less than your rate for the same points.  Why?  Well, that mortgage company or bank is either not telling the truth, or the rate was quoted before a recent change in rates.  Either way, you cannot rely on the rates quoted in a printed document.  Mortgage interest rates are subject to change, and occasionally, have changed 3 or more times a day in a volatile market.  Also, some loan originators will quote a low rate to generate interest and/or phone calls, with no intent or ability to offer the rate quoted.  The truth is, every lender, loan originator, broker, etc.; has access to almost identical rates (within .125%).  Make sure you are dealing with a reputable Mortgage Professional, and don’t be swayed only by the lowest rate.  When making application, ask for a Good Faith Estimate, Truth-In-Lending Disclosure,and a signed Lock-In at the rate quoted for the term desired.

What does a Mortgage Loan Professional do, and why do I needone?  A Mortgage Loan Professional is a mortgage broker or a bank loan officer trained in real estate loan products, lending guidelines, lending technology, and how to counsel you based on your financing needs.  If you are dealing with a large bank or mortgage lender, the products offered may be somewhat limited, and more importantly, the variety of loan underwriters who ultimately decide your application's fate may be limited also. If you are dealing with a mortgage broker or small community bank, you may find a wider range of product options, and underwriters.  Why?  Mortgage Brokerage Businesses are small consumer driven business that have correspondent relationships with many wholesale lenders in an effort to offer an array of products and the most competitive rates available for your situation.  This all comes with the personal service you deserve.  You need a Mortgage Loan Professional because of their knowledge, not only of the various loan products and terms, but the underwriting criteria for each program and lender.  Most importantly, they have the experience to match one or more of the loan products with your needs and desires, and get your loan closed within the time frame desired.

Should I use a Bank or a Broker?  Today, most large banks and national mortgage lenders rely on their Correspondents to originate mortgage loans for their portfolio or for sale in the secondary market.  They do this even if they offer mortgage loans directly to their existing customerbase.  This keeps capital, operating, and personnel costs reduced, especially in a “down” mortgage market when they may otherwise have to close a Loan Production Office.  It also allows them access to a client they may not otherwise reach.  But this works both ways.  Indirectly, you are getting the best deal available by having a Mortgage Loan Professional using his/her correspondent relationships to find the best deal among the lending giants, but with the one-to-one relationship of your home town loan officer.  This is why Mortgage Brokerage Businesses have sprung up everywhere.  You benefit from the competition.  JacksonvilleMortgage.com, through David MacInnes, offers you the competitiveness of the Broker, the rates of the nation’s biggest lenders, and competent, experienced, friendly service with a local loan officer.

How do I find the right Mortgage Loan Professional for me?  If you do not already know a Mortgage Professional, ask your Realtor, Accountant, Attorney, or anyone you respect, who has recently closed a mortgage loan or purchased a home.  It is very important to trust the person handling one of the biggest financial decisions you will make.  Our “Beaches” community is small, and David does not want the reputation of being unable to deliver for the mutual client of a referral source.  Therefore, he builds confidence and trust with his  clients and referral sources, by being prompt, accurate, and thorough.  When looking for a Mortgage Professional, ask someone you trust!!

Do I qualify for the loan I am seeking? The guidelines for FNMA/FHLMC loans call for certain debt to income ratios.  Your new housing payment (principal & interest payment plus monthly tax, homeowner’s insurance, and mortgage insurance escrows, as well as any Homeowner’s or Condominium Association fees) should not exceed 28% of your gross monthly documentable income.  All other monthly debts, when added to your new housing payment should not exceed 36% of your gross monthly documentable income.  Keep in mind these are guidelines only, and will be subjectively reviewed in conjunction with job stability, cash reserves, equity in the collateral real estate, and credit history.  Without a completed application and credit report, it is difficult to answer the question, and even then the answer would be subject to verification of all information.  In addition to income and debts, the cash available for closing must be documented.  The source of the funds should also be documented. The documentation is to show the funds have not been borrowed, gifted, illegally obtained, etc. There are certain circumstances where gifted or borrowed funds are “ok”, so you be prepared to discuss this with your Mortgage Professional. To find out if you qualify, complete a mortgage loan application and sign an authorization so your Mortgage Professional may evaluate your situation and credit history.  You may use the Contact page for a Good Faith Estimate or Application Package to be mailed, faxed, or e-mailed to you.

Can a mortgage loan be approved instantly?  Yes, and what a great marketing tool!  Automated Underwriting has given the mortgage industry an instantaneous approval.  The approval received is a Conditional Approval, and I like to tell my clients that the last condition is cleared when the ink is drying on the closing papers.  The automated underwriting systems are as good as the information input.  If the information given is accurate, and can be documented sufficiently,you will receive an accurate approval, subject to review of the documentation.  Unfortunately, for the self-employed, highly bonused or commissioned individual or someone whose information is not accurate, the documentation required may be unobtainable.  In this case, a final approval has to go before an actual human.  Fortunately, you have selected a Mortgage Professional who has asked the correct questions at application, and has properly input the information into the automated underwriting system and not someone who has told the computer what it wanted to hear!   AutomatedUnderwriting is the future, however, somewhere along the line, a human being will be involved; so carefully select a Mortgage Loan Professional with whom you feel comfortable, and consider competent, reputable, and trustworthy.

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