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1. Why did my Realtor refer me to you? Answer
2. What does it mean to be a mortgage broker?
Answer
3. Does it cost more to work with a broker? Answer
4. Is 20% of the price of a new
home required as a down payment?

Answer
5. Why and how do interest rates change?
Answer
6. Can young people get home loans?
Answer
7. Are mortgage payments more expensive than rent?

Answer
8. How much cash will I need to purchase a home? Answer
9. What is the minimum income
I can earn and still qualify for a mortgage?

Answer
10. Will a late credit card payment
disqualify me from getting a mortgage?

Answer
11. How is an index and margin used in an ARM? Answer
12. How do I know which type of mortgage is best for me? Answer
13. What does my mortgage payment include? Answer
14. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
15. Should I do a loan that has a "Three" year pre-payment penalty attached to it? Answer
16. When should I consider refinancing?
Answer

Q : Why did my Realtor refer me to you?
A : A "high quality" realtor knows that the key to a successful transaction means TEAMWORK with a professional mortgage broker. Any experienced realtor could tell you horror stories about times when a client made a poor choice of a mortgage company, and ended up with big surprises at the closing table, or worse, no closing taking place at all!

A good realtor will form relationships with trusted individuals who have proven themselves time and time again, so that they know you will be given the excellent service that you deserve. It is important to know that your realtor is NOT given any compensation or "kickbacks" for referring you to a mortgage broker. As a mortgage professional, I desire more referrals, both from you and your realtor, so consider the extra motivation this provides for us to take great care with your satisfaction!

 
Q : What does it mean to be a mortgage broker?
A : Unlike banks, mortgage brokers specialize only in mortgage lending. Unlike mortgage companies (Countrywide, Wells Fargo, etc..) who can only offer their own products, mortgage brokers have the ability to use many different companies products, thereby providing you with a larger variety of options and choices for your financing. Instead of being captive to whatever pricing one particular company chooses to offer, we can shop the competition and pass the savings on to you.

I can get a Wells Fargo loan at a lower cost than you going into your own Wells Fargo branch office and getting a loan there. The difference is retail vs. wholesale. The retail offices of these banks offer retail rates. Brokers offer wholesale rates which are lower. Brokers close 80-90% of all loans that are offered by these banks and mortgage lenders, so brokers have to have better pricing from them in order to keep their loans funding at current levels.

 
Q : Does it cost more to work with a broker?
A : Normally the cost is less, and here's why. We originate, close and fund mortgage loans and deliver them to the nations largest mortgage servicers for less than the cost they would pay to originate the loan themselves. As one of the premier mortgage brokers in Southern California, we receive better pricing than most, and you can benefit from our savings.
 
Q : Is 20% of the price of a new
home required as a down payment?

A : No, there is no set amount that you must put down. Mortgage loans can now be tailored to fit each home buyer's needs and financial resources. The standard was 20 percent, but lenders today recognize that 20 percent of the sales price is a tremendous amount of cash for most first-time buyers. Today first-time buyers commonly put down 3.5, 5 or 10 percent of the sales price, and you might be surprised to learn that some first-time homebuyer programs allow 100 percent financing – that's right, zero down payment. (VA Loans are an example)
For down payments of less than 20%, mortgage insurance (MI) will be required and associated costs will apply.
 
Q : Why and how do interest rates change?
A : Many people are surprised to learn that rates change on a daily and sometimes hourly basis. Interest rates fluctuate in response to changes in the financial markets. The bond market is generally a good indicator of the general trend of interest rates.
 
Q : Can young people get home loans?
A : Age makes little difference. Most first-time homebuyers are in their twenties or thirties. In fact, 50% or more of new home mortgages are made to people under 35. Many prospective home owners worry that they must fit a particular profile in order to qualify for a loan. It's not true. The fact is, among all the things that mortgage lenders look at, the most important – whatever your background – are these: what is your income compared to the debt you're currently carrying, what is your credit history, and how much do you have in savings...
 
Q : Are mortgage payments more expensive than rent?

A : If you're paying rent, you might be surprised to see how little the difference is between making home payments. In many cases, mortgage payments can be close to, or even less than your current rent payment. Besides this, owning a home is a solid, long term investment which offers substantial tax benefits... something renting just can't compete with.
 
Q : How much cash will I need to purchase a home?
A : The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
  • Earnest Money: The deposit that is supplied when you make an offer on the house
  • Down Payment: A percentage of the cost of the home that is due at settlement
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
  •  
    Q : What is the minimum income
    I can earn and still qualify for a mortgage?

    A : There is no set minimum income requirement for mortgage qualification. However, you need to be certain that your income level can support monthly mortgage payments. Fortunately, as a qualified Mortgage Broker, I can help take the guesswork out of knowing whether or not you can qualify, and how much of a loan you may qualify for. Before you even start looking for a house, call me toll-free at 1-888-OBRIEN9.
     
    Q : Will a late credit card payment
    disqualify me from getting a mortgage?

    A : Late payments (especially those under 30 days) should not automatically disqualify you from getting a loan. Almost everyone has had trouble making a payment at one time or another. You're only human, and mortgage lenders know this. Many people find themselves in difficult financial situations, often due to illness, divorce or temporary unemployment.

    If you can demonstrate that the problem is in the past, and you have been able to re-establish a good track record for a sufficient amount of time, you should still be in a good position to get a mortgage loan. There may be a reasonable explanation, so speak to your lender honestly and openly about the situation. It's important to remember that lenders don't just look at your past history, but also at your ability and willingness to pay in the future.

    Sometimes, you may not be ready to buy a home. Doing so may only compound your problems. If you don't qualify for the loan you want today, work with me to address the issues that have kept you from getting your loan approved. With a little help, you may be just a few months away from getting that new home

     
    Q : How is an index and margin used in an ARM?
    A : An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
     
    Q : How do I know which type of mortgage is best for me?
    A : There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. I can help you evaluate your choices and help you make the most appropriate decision.
    Whether its repositioning current assets or acquiring new ones in several states. I can assist you with this analysis.
     
    Q : What does my mortgage payment include?
    A : For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
  • You need to be aware of Negative Amoritizing loans and their FULLY INDEXED rates. These loans have their advantages, but utilized incorrectly, they can chew up your homes equity fast! Then that little payment won't seem like such a good thing. Call me and I will go over this with you. 888-627-4769
  •  
    Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
    A : With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to me.

    There are different types of ARM loans, so you have to choose wisely.

     
    Q : Should I do a loan that has a "Three" year pre-payment penalty attached to it?
    A : You should NEVER do this kind of loan. It only benefits the loan officer and the lender. You, the client, are hit hard for taking this path. Three things happen to you when you get loan financing with a three year prepayment penalty attached to it.

    1. You pay a higher interest rate on the loan than if you didn't have the 3 year prepayment penalty. Strange, but true.

    2. You are now stuck with this loan for three years. The only way to get out of it sooner is to pay a penalty of 6 months interest whcih can be over $30,000 on some large loan amounts. Talk about being financially trapped.

    3. The Loan Officer who sold you this loan is going to get paid 2-3 times more money than if he had NOT put you into a 3 year pre-payment penalty.

    I know what you are thinking. Where is my benefit for being shackled in this bad loan for three years. There is none! I am still waiting for someone to tell me what it is. In the meantime, my clients will not be in loans that have 3 year pre-payment penalties. I have yet to do a loan with a three year prepayment penalty in all of my years of being a mortgage financing specialist.

     
    Q : When should I consider refinancing?
    A : The old rule of thumb was at least 2%, but this is no longer the case. Many different individual factors need to be analyzed to determine if refinancing is right for you, such as the length of time you intend to stay in your home, or the type of loan you currently hold. I am always happy to provide a recommendation to you for your particular circumstances, and if you have any questions at all feel free to call me toll-free at 1-888-OBRIEN9.

    If its not in your best interst, I will tell you to NOT do any refinancing. I want you to be in the best financial position as possible.