YOUR MORTGAGE QUESTIONS ANSWERED
Any mortgage questions not featured within the Mansfield Mortgage Professionals’ mortgage questions FAQ can be answered directly over the phone or via email. Contact Mansfield Mortgage Professionals today to have your mortgage questions answered and to learn more about the loan process!
The pre-approval process is much more complete than pre-qualification. For pre-qualification, the loan officer asks you a few questions and provides you with a pre-qual letter. Pre-approval includes all the steps of a full approval, except for the appraisal and title search. Pre-approval can put you in a better negotiating position, much like a cash buyer.
Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts. There are many other reasons people decide to refinance as well. Give us a call. Let’s talk about it together to see if it makes sense.
A rate lock is a contractual agreement between the lender and borrower. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock. We lock a rate prior to closing (you can’t close until you lock). We also lock when we think rates are going to get worse before we close. So instead of continuing to float and end up a with a higher rate down the road, we lock in on that day.
A mortgage broker counsels you on the loans available from different wholesaler lenders (banks), takes your application and usually processes the loan. This involves putting together the complete file of information about your transaction including the credit report, appraisal, verification of your employment and assets, and so on. When the file is complete, but sometimes sooner, the lender “underwrites” the loan, which means deciding whether or not you are an acceptable risk.
Mortgage brokers have more options than a traditional lender. As brokers, we have many lenders with different programs to better serve you, our clients.
Not necessarily. Rates really are a commodity now. Mansfield Mortgage has very similar rates when compared to a brick and mortar bank or credit union. We might be lower one day and higher the next (rates are like stocks, they change price daily, hourly, etc).
It is the list of settlement charges that the lender is obliged to provide the borrower within three business days of receiving the loan application. Due to new laws, I am obligated to have a very tight tolerance on many fees. 10% in fact. Meaning, if I tell you your legal fees are going to be X, then they can only be X plus 10% or I pay the difference. Mortgage brokers are some of the most highly regulated players in the entire mortgage world. This includes us having our finger prints recorded, criminal background and credit checks conducted, etc. Just ask us. We’d be very happy to tell you what we need to do to hold our licenses.