1. Why did my Realtor/CPA/financial advisor/custom construction builder refer me to you?
2. Should I use a realtor?
3. Are rates going to go up or down (should I lock or float)?
4. I'm pre-approved. Now What?
5. Should I refinance?
6. What is an origination fee?
7. What is title insurance?
8. What is mortgage insurance?
9. What is a mortgage broker?
10. How do I get pre-qualified/pre-approved?
11. Does it cost more to work with a mortgage broker?

Why did my Realtor / CPA / financial advisor / custom construction builder refer me to you?

A high quality financial professional knows that the key to a successful transaction means TEAMWORK with an experience mortgage professional. 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! Good Realtors, CPAs, financial advisors, and customer home builders 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 the person that referred you is NOT given any compensation or "kickbacks" for referring you to a mortgage professional. As mortgage professionals, we desire more referrals, both from you and the individual who referred you, so consider the extra motivation this provides for us to take great care with your satisfaction!

Should I use a Realtor?

For most people, working with a qualified Realtor is usually in their best interest. When purchasing a home, the realtor's commission is not paid by the buyer, but by the seller of the home being purchased. Therefore, you can obtain professional representation for no money directly out of your pocket. A good Realtor can inform you on current market trends, "hot" real estate areas, and help you in negotiating details in the contract.

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. Realtors have professional networks to publicize your home quickly, helping to achieve the most interest in a shortest amount of time.

Are rates going to go up or down (should I lock or float)?

Most people are surprised to learn that mortgage rates typically change daily, and in more volatile market, they can change more that once a day. I can advise you as to the recent historical trends in the mortgage rates of the program you are interested in, but that is no guarantee on the direction the rates will go in the future. Typically, I recommend that people lock in to an interest rate when they can get a rate they are comfortable with. If rates go down an 1/8 of a point from when they locked, for most people that only a few dollars a month difference in payment. 

I'm pre-approved. Now what?

You are ready to buy a home! When you are pre-approved, you have more leverage in that the sellers realize you are a serious buyer, ready to take action. 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.

Should I refinance?

Although there no rule that fits everyone, the rule of thumb is if you can get an interest rate 1% less than you currently have, you should consider refinancing. For other situations, if you can get the same interest rate and take cash out to pay off high rate credit cards, refinancing might make sense. There are 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 Arizona, 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.

What is a mortgage broker?

Unlike banks, mortgage brokers specialize only in mortgage lending. Unlike mortgage companies 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.

Does it cost more to work with a mortgage broker?

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.