WHY
DID MY REALTOR REFER ME TO YOU?
A
high quality realtor knows that
the key to a successful transaction
means TEAMWORK with a professional
mortgage banker. Any experienced
realtor could tell you horror
stories about times when a client
made a poor choice of 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 banker.
As mortgage professionals, we
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!
WHY
SHOULD I USE A REALTOR?
First
and foremost, because you need
an experienced professional working
on your behalf. The realtor's
commission is not paid by the
buyer, but by the seller of the
home being purchased, and it is
in each party's best interest
to have professional representation.
As a seller, profits are generally
maximized by having an experienced
realtor market and sell your home,
rather than deal with the headaches
of trying to do it all on your
own. See our page on "selecting
a realtor" for
more information.
WHY
AND HOW DO INTEREST RATES CHANGE?
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.
WHAT
HAPPENS ONCE I AM PREAPPROVED?
You
are ready to buy a home! Remember
that it is very important to inform
us of any changes in the financial
information that was provided
at the time of approval, as it
may make a change in the amount
or type of loan that you can qualify
for.
WHEN
SHOULD I CONSIDER REFINANCING?
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. We are always
happy to provide a recommendation
to you for your particular circumstances.
WHAT
IS AN ORIGINATION FEE?
Typically,
it is 1% of your loan amount,
and works exactly like a discount
point. You can avoid all or part
of this fee by paying a higher
interest rate. In Baltimore/Bel
Air,
rates
are
typically quoted assuming this
1% origination fee.
WHAT
IS TITLE INSURANCE?
It
is a policy provided by the title
company guaranteeing the accuracy
of the title work done on your
home at the time of purchase.
As a buyer, you are required to
purchase a lenders policy of title
insurance as part of your standard
closing costs, which only protects
the mortgage company. You may
also choose to purchase an owners
policy, which would protect you
against any loss in the event
of any legal issues relating to
the title of your home.
WHAT
IS MORTGAGE INSURANCE?
This
is generally required in one form
or another when the down payment
is less than 20%, and protects
the lender in the event of loan
default. The lower the down payment,
the higher the risk for the lender,
and thus the higher the monthly
premium. Depending on your particulars,
there are ways in which mortgage
insurance can sometimes be avoided
at purchase, or dropped altogether
at some point in the future. |
