Our mission is simple, to empower our clients in order to achieve their financial goals with expert insight and guidance. A word-play off of a retired disclosure, we strive to be “The Truth in Lending”, in all that we do. The key to purchasing or refinancing your home is fully understanding all options and knowing why the path chosen is best for you and your family.
That depends upon the structuring of your loan.
If you are doing standard financing (Conventional, FHA or VA) and do not need down payment assistance, every lender will make their money as a margin already “set” inside the interest rate.
If you’re going with down payment assistance, than every lender has a set contract with that program. The rate is dictated by the program and every lender must charge “points” to make any money.
Never, and if anyone ever asks for you to pay for a credit report or they charge you an “application fee”, run!
As your advisor, I work with you from day one, for free. We pour our heart and knowledge into you and do not get paid until the day you close.
We have even worked with some clients for two years to clean up credit or get them to where they could purchase or refinance their home!
If you look everywhere – online, big banks, credit unions and every single mailer ever receive – they are offering “teaser rates“.
To put it bluntly, a teaser rate should really be called a B.S. rate. They are advertising rates based off of the best case scenario possible (odds are it’s not your scenario) AND charging points for a rate below market.
They do not have better rates than us, I can almost guarantee it. They are simply advertising teaser rates to get the phone to ring and hope you don’t question why there costs are thousands of more dollars more at closing.
Nope! The Dodd-Frank Act outlawed pre-payment penalties on all conventional financing. If you buy today, hit the lottery tomorrow you can pay off the balance of your home without any penalties.
15 years ago mortgage rates would change 0.25% up or down in a month. Today, the rate market is very volatile due to everything that is going on in the economy and world wide.
It’s important to know, rates move up or down on a marginal basis. Enough movement upwards in the margin and the rate will increase, same goes for the downward movement.
It’s also important to know that the secondary market updates rates three time a day (market open, mid-day and even late afternoon).
We can quote you a rate today, but could be +/- by tomorrow. If you’re ever shopping around for rate, it’s imperative you quote apples-to-apples (pricing from the same day for the same scenario).
Your interest rate on the financing is made up of multiple items. Some include:
If you are strictly looking at rates advertised, odds are you will pay too much (in points) and not get the best rate-to-cost ratio.
When purchasing a home, there are what we like to call the “3 Buckets” of closing costs:
It’s imperative to know lenders are required to verify everything right before your closing day!
Credit – A couple days prior to closing, lenders are required to pull a “refresh report”. This is to see if there are any new inquiries or if card balances increased 5% or more . Do not inquire for new cards, etc until keys are in your hand as it could come back and cause major problems.
Employment – When you sign closing documents, lenders are required to get another verbal “verification of employment”. If you were let go, hours reduced or you put in your 2-week notice, you could find yourself with a dead deal.
NMLS# 237341, 230070
LendPro Mortgage is a DBA of American Financial Network, Inc. Corp
A pre-approval does not constitute a loan commitment or guartantee of a loan. Pre-Approval is subject to satisfactory appraisal, satisfactory title search and no meaningful change to borrower’s financial condition.