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1. What documents do you need? Answer
2. How do I know how much house I can afford? Answer
3. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
4. How do I negotiate a short pay off with my current lender? Answer
5. How is an index and margin used in an ARM? Answer
6. How do I know which type of mortgage is best for me? Answer
7. What does my mortgage payment include? Answer
8. How much cash will I need to purchase a home? Answer
9. What is a Home Equity Line of Credit (HELOC)? Answer
10. What makes your Home Equity Loans better than other lenders? Answer
11. Can I really get my money in 10 days? Answer
12. Can I pay off my home equity line of credit early or make a reduction to principal without penalty? Answer
13. Should I lock or float my rate? Answer
14. When do you the lock the rate? Answer
15. Do you have the lowest rates? Answer
16. Why is my bank advertising a lower rate? Answer
17. How are HELOC payments calulated? Answer
18. Can I come to your office? Answer
19. Where do I go to sign my loan documents? Answer
20. Are you a broker? Answer

Q : What documents do you need?
A : For W2 Wage Earners (not-self-employed) 

You'll need to provide documents that verify your employment, income and assets. 

For Refinance and HELOCS:

  • Copy of a government issued ID
  • Copy of your Social Security card
  • Pay stubs for the last two months
  • W-2 forms for the past two years
  • Bank statements for the past two or three months
  • Federal Tax Return for the past year
  • Self Employed-Past 2 years tax returns
  • Copy of your first mortgage statement showing the balance and payment
  • Copy of your first mortgage note 
  • Proof of homeowners insurance or contact information for your insurance agent.
  • Information on current debt, including car loans, student loans and credit cards

For Home Purchase: All the above and:

  • A signed contract of sale
  • Copy of cancelled check for earnest money deposit

 

 
Q : How do I know how much house I can afford?
A : Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call 800-774-1432, and we can help you determine exactly how much you can afford.
 
Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
A : With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
 
Q : How do I negotiate a short pay off with my current lender?
A :
  1. Call or apply online. 
  2. When you qualify, we'll issue a pre-approval letter and Good Faith Estimate showing the amount of the new loan. 
  3. Contact your current lender, explain you have been approved for a loan to refinance your home.
  4. They will likely send you some paperwork to fillout and will ask you for the pre-approval letter.
  5. Return the paperwork and the pre-approval letter to your lender.

Be sure to ask our highly skilled representatives for some tips to help you and consult with your tax advisor.  

 
Q : How is an index and margin used in an ARM?
A : An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
 
Q : How do I know which type of mortgage is best for me?
A : There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. We can help you evaluate your choices and help you make the most appropriate decision.
 
Q : What does my mortgage payment include?
A : For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
  • For our HELOCS it includes the principal and interest.  
  •  
    Q : How much cash will I need to purchase a home?
    A : The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
  • Earnest Money: The deposit that is supplied when you make an offer on the house(this is credited toward your down payment
  • Down Payment: A percentage of the cost of the home that is due at settlement
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
  • Call us and we will gladly prepare a good faith estimate for you so you know exactly how much you will need. 

     
    Q : What is a Home Equity Line of Credit (HELOC)?
    A : HELOC stands for home equity line of credit.  It is a loan set up as a line of credit secured by the equity in your home for some maximum draw (credit line), rather than for a fixed dollar amount. For example, using a standard mortgage you might borrow $50,000, which would be paid out in its entirety at closing. Using a HELOC instead, you receive the lender’s promise to advance you up to $50,000, in an amount and at a time of your choosing. You can draw on the line by calling us, faxing or emailing a request form.  Funds will be sent to your account on the next business day. 
     
    Q : What makes your Home Equity Loans better than other lenders?
    A :
    1. Fixed Rates- Your payment will remain the same during the entire term of your loan.
    2. We Can Loan You More- Up to 95% of the value of your home which allows clients to borrow more money (should you need it). 
    3. No Balloon Payments 
    4. No annual maintence fees  
    5. No draw fees
    6. No Prepayment penalties or early termination fees
    7. No surprises!
    8. We can fund in as little as 10 days.
    9. Exceptional Service from people who really care about doing a great job for you.
     
    Q : Can I really get my money in 10 days?
    A : Yes!  This offer applies to all our HELOC products.  In order to receive your funds in 10 days, we need: Completed Online Application, Income Documentation, Homeowners Insurance, copy of your first mortgage statement and signed disclosures. We'll schedule your closing usually within a week from application.  3 days after closing (this is required by law), the net proceeds of your loan will be wired to the bank account of your choice.  We can also issue a check if you prefer.

    Of course you must meet program guidelines including minimum Fico score, combined loan to value and our undersriting guidelines.

     

     
    Q : Can I pay off my home equity line of credit early or make a reduction to principal without penalty?
    A : Absolutely anytime you want!  We do not offer loans with pre-payment penalties.  If you make a principal reduction, your payment remains the same and the term of your loan shortens. 
     
    Q : Should I lock or float my rate?
    A : It depends on the market.  If rates are going down, it's usually better to float.  If rates are rising it's better to lock.  The truth is rates change everyday.  No matter which way the overall market is going rates could go up or down (sometimes a lot) on any given day.  Our general advice is; if the rate works for you at time of approval, it will work for you at closing, so lock in when your loan is approved.  But as we say, the choice is always yours!
     
    Q : When do you the lock the rate?
    A : When you tell us!  Once your loan is approved you tell us when to lock your interest rate.  Some clients want to lock right away and "not worry about it."  Others feel they have "market insight" and decide and want to "play the market".  If you would like guidance, one of our Home Loan Advisors will be happy to assist you.  Either way, the decision is always yours!
     
    Q : Do you have the lowest rates?
    A : No bank or mortgage company can say "We have the lowest rates."  If one does RUN!  The fact  is most banks and mortgage companies offer similar products and similar rates.  We strive to offer the most competitive rates and we beleive we offer the absolute best service.  Hands down!

     

     
    Q : Why is my bank advertising a lower rate?
    A :

    Go to the bottom of the page or click the links and read the fine print.  Look out for these items:

    1. Introductory Rate- The advertised rate is in effect for 3-6 months and then adjusts.
    2. Adjustable Rates-Most of those low rate offers are ajustable rates which can go as high 18%.
    3. Payment Changes- Most banks charge you interest only for 10 years, then comes repayment over 20 years,  Your payment could go up as much as 20%-30%.
    4. Draw or Transaction Fees- Some lenders actually charge you every time you make a draw to get your money!
    5. Annual Fees- Yep! Most charge a fee every year to maintain your credit line.
    6. Pre-Payment (Early Termination) Fees- If you close your credit line within the first 2-4 years, the lenders slaps you with a $400-$500 penalty and some time more!
    7. Balloon Payment- This one is scary.  At the end of the term, the entire balance is due and payable.
    8. Interest Only-  Some lenders advertise a low payment which only includes interest.  You could pay for 20 years and still owe the same amount you originally borrowed.
    9. Hidden Fees- Read the fine print for other charges and fees.  
    10. While other lenders may advertise low initial rates; when you read the fine print, you find out out the most banks will only loan you up to 80% of your homes value and are adjustable rates which could go up as high 18%!!
     
    Q : How are HELOC payments calulated?
    A : Your payment is cacluated based of your qualifying interest rate, 27 year term and total line amount.  Your payment remains the same until the line is paid off.  You are only charged interest on the amount that you actually borrow.  Example: You establish a credit line of $30,000 and borrow $25,000.  You only pay interest on the $25,000.  If you pre-pay a portion of your loan, your payment will remain the same and you will pay your loan off sooner.  
     
    Q : Can I come to your office?
    A : Absolutely.  We love to see our customers!  While all the work on your loan can be done on line and over the telephone, if you feel more comfortable visiting our office, feel free to stop by.  We'll even buy you a cup of coffee!
     
    Q : Where do I go to sign my loan documents?
    A : How about your kitchen table?  It's true...we can arrange for a licensed notary public to bring your loan documents to your home or place of business for you to sign.  Or if you prefer, you can go to (depending on state) an escrow company, title company or attorney's office.  It's completely up to you.

     

     
    Q : Are you a broker?
    A : We generally act as a direct lender.  In some cases we may act as a broker when doing so is necessary to obtain the desired financing.