What is the difference between a Mortgage Broker and a direct lender?

A direct lender is a financial institution that uses it’s own funds to close the loan. They have to select a loan program that is within their own product line, and do not have access to any other programs. An example of one of the most common direct lenders is a bank.

A Mortgage Broker is someone who has direct relationships with many different lending institutions. They have access to multiple programs from multiple sources. This gives the borrower more choices and the advantage of getting multiple quotes without having to run their credit multiple times! A Mortgage Broker is also considered a wholesaler and can usually offer lower rates than a direct lender.

What fees should I expect to pay for on a loan?

This really depends on your specific loan and situation. There are programs with less fees than others and there are instances where you might pay more fees for a lower rate. Our Loan Consultants will work with you and examine all options for getting you the best loan program with the lowest fees possible.

Are there any upfront fees?

The only fee that you will have to pay for in advance is for the appraisal. If you are refinancing, all other fees will be included in your new loan balance unless otherwise directed. If you are purchasing a home, the fees will be due at the close of escrow.

How do I know what loan program is best for me?

There is no simple answer for this question. The right loan program for you depends on many different factors including:

• Your current financial picture

• How you expect your finances to change

• How long you intend to keep your home

• What are you looking to accomplish with this loan

Our Loan Consultants will discuss these questions before starting the loan process to ensure that you are comfortable with what we have to offer.

What is the difference between the APR and the interest rate?

The APR (annual percentage rate) reflects the cost of your mortgage loan as a yearly rate. It also incorporates the cost to obtain the loan, such as: discount fees, loan origination fee, escrow fees, and title insurance. The APR allows you to compare, in addition to the interest rate, the total cost of financing your loan, among various lenders. The interest rate is the actual note rate.

How long will it take to close my loan?

It typically takes about 30 days to close a loan, although each situation will vary. It all depends on how quickly we are able to obtain the necessary documentation from the borrowers. Some loans can be closed in as little as 2 weeks!