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Frequently
asked questions
Why did my realtor
refer me to you?
Why should I use a Realtor®?
Why and how do interest rates change?
What happens once I am pre-approved?
When should I consider refinancing?
What is an origination fee?
What is title insurance?
What is mortgage insurance?
How do I get pre-approved?
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®?
You should use a Realtor® because you need an experienced
professional working on your behalf. All real estate licensees
are not the same. Only real estate licensees who are members
of the NATIONAL ASSOCIATION OF REALTORS® are properly
called REALTORS®. They proudly display the REALTOR "®"
logo on the business card or other marketing and sales literature.
REALTORS® are committed to treat all parties to a transaction
honestly. REALTORS® subscribe to a strict code
of ethics and are expected to maintain a higher level
of knowledge of the process of buying and selling real estate.
An independent survey reports that 84% of home buyers would
use the same REALTOR® again. Additionally, the Realtor's
commission is not paid by the buyer, but by the seller of
the home being purchased. See our page on "selecting
a realtor" for more information.
The Realtor® website
contains 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 pre-approved?
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 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 lender’s risk is higher
for a lower down payment, and the size of the monthly premium
reflects that risk. 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.
How do
I get pre-approved?
Complete my secure, online pre-approval form.
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Licensed Mortgage Banker and/or Authorized Lender in all 50 states and
the District of Columbia