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HOW LONG WILL ALL THIS TAKE?The chart on this page shows what you're doing and what we're doing during the short processing period before loan funding. A maximum of 10/12 business days, start to finish is common. The types of loans we fund are: |
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| The Loan Process: | |
| YOU GIVE US A LOAN APPLICATION VIA THIS WEBSITE. | Our Loan Underwriting Department receives it |
| YOU AUTHORIZE US TO PULL YOUR CREDIT REPORT | Our Credit Administrator reviews the application, Pre-Approves your loan request, and we phone you that day with the good news! |
| YOU COLLECT THE NECESSARY PAPERWORK (listed on our Loan Application page) AND FAX TO OUR OFFICE | Our Loan Processing Department quality controls the paperwork, orders the appraisal, the legal & title work, etc. |
| YOU SIGN THE LOAN PAPERS NEAR YOUR HOME, WITH ONE OF OUR LOCAL AGENTS | Your loan is funded, and then we all SMILE! |
| General
Programs: FIXED RATE RESIDENTIAL REAL ESTATE LOANS - Both interest rate and payment remain the same over the term of the loan. Loans can be amortized over 10 to 30 years. Up to 125% LTV available! FIXED RATE RESIDENTIAL REAL ESTATE "BALLOONS" - Both interest rate and payment remain the same until the loan is due. Typically, the entire loan amount is due in either 3, 5, or 7 years. The advantage of balloon programs is that they tend to have the lowest rates, however, the entire balance must be paid off or refinanced at the end of the term. This type of financing is recommended for borrowers who know they will be leaving their current house in 3 to 7 years. Adjustable Rate Mortgage (ARM) RESIDENTIAL REAL ESTATE LOANS - Both interest rate and payment remain the same for a fixed time period, usually 2, or 3 years. At the end of that period the rate can rise at fixed intervals. The amount the rate can rise, or margin, is predetermined (normally 1/2% to 2% per rise). The intervals are normally 6 or 12 months. Typically there is a "Cap" on the margin, which determines the highest the rate could ever go. The advantage of an ARM is that it allows you to get a lower rate, for a known period of time, while you watch the market to see if and when fixed rates get better. Some feel that although they may have gotten a better rate with a balloon, an ARM will adjust at the end of the "fixed period", whereas a "Balloon" has to be refinanced or paid in full. ARMs are recommended for those borrowers who intend to stay in their house for a fixed period and have taken the time to factor in the margin, to determine that they would not be better off with a Fixed Balloon or even a Fixed Rate. With Deferred Interest ARM loans, monthly payments and rate changes often do not move at the same time. Example: monthly payment changes 12 months after funding, then annually after that (with a fixed "cap" on the amount of the payment increase); yet "rate" changes many months before that! BUYDOWN RESIDENTIAL REAL ESTATE LOANS - Both rate and payment remain the same for a fixed period, at the end of which, the rate and payment increase. The rate and payment may increase once, twice, or even three times, depending on whether the Buydown is a 1/1, 2/1, or 3/1. The percentage of increase, as well as number of increases is predetermined. Once all of the increases have occurred the new rate and payment remain fixed for the term of the loan. Also, lenders will typically charge a fee to "buy the rate down" for the first 1, 2, or 3 years of the loan. The advantage to a Buydown is that it offers a lower rate and payment during the first few years of the loan. Buydowns are recommended for those borrowers who are having trouble qualifying from an income stand point. |
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