Why is my mortgage on the public record?
A home loan is an amount of money borrowed to finance the purchase of a property. A mortgage is a legal document that creates a lien on a property, to secure the lender’s interests on the home loan being issued. At escrow, your lien (or Deed of Trust, in some states) for your mortgage is filed with the County, at which point it becomes public record.
How does my credit score affect my pre-approval or interest rate?
A borrower’s credit score is very important to the pre-approval process and will have an effect on the interest rate a borrower is able to get a loan at. It is important to clear up major credit issues before beginning the pre-approval process, which is why it is important to speak with your Sr. Mortgage Specialist early in the process and before you begin. There are several small, easy things you can do to bump up your credit score, but nothing is more important than making timely payments on outstanding debts, such as credit cards and auto loans. Also, make an effort to keep the outstanding balances at or below 30% of the credit limit available. Speak with your Sr. Mortgage Specialist to learn more.
What are the current rates, and when should I lock my loan?
When it comes to locking loans, the market trends and current rates are important. What’s more important in the home loan process is finding a mortgage professional that you can trust. It is valuable insight to meet with professionals that understand the business and the markets. Choosing a dedicated Sr. Mortgage Specialist that you trust, and have on your side early, is invaluable to you as a consumer, because they will keep you informed all throughout the process and make the best lock on your behalf.
What is the difference between a mortgage broker and a direct lender?
A mortgage broker is a middleman that offers the loan products of multiple direct lenders. A mortgage broker works between a borrower and the direct lender, which means there is a potential for higher rates and increased time to close a loan. A direct lender has the ability to lend funds that are used at closing. With a direct lender, the borrower is working directly with the company lending the money.
Directors Mortgage is a direct lender with the ability to act as a mortgage broker. As a direct lender we are able to provide our clients with an efficient closing process and competitive rates. However, we are also able to provide mortgage broker services if it is more advantageous for our client’s needs.
What is the difference between interest rate & APR?
The interest rate is the annual rate that is charged for borrowing money. An Annual Percentage Rate (APR) is a calculated rate which includes the interest rate and any additional cost or prepaid finance charges. The APR is a percentage that may assist you in comparing the overall cost of lending options that takes into account additional items such as fees at closing, not just the interest rate.
Why are your rates different from those I’ve seen in advertisements?
When comparing loan rates to those in newspapers or other mediums, keep in mind the rates in those publications may have been reported one or more days ago. These rates may be different because rates can change multiple times in a single day. The best way to find out about the current market trends and rates is to talk to a Sr. Mortgage Specialist.
How is my information used to come up with loan options and interest rate?
When putting together potential loan options for you, we provide potential loan solutions to fit your specific, unique needs. There are several aspects taken into account when determining potential loan options and interest rate including the property price, down payment potential, the planned years of residence in home, use of home (rental or owner occupied), income, debt, credit score, the property’s appraised value and many other factors. Because there are several factors it’s always best to speak with a Sr. Mortgage Specialist about your particular situation to make sure you qualify, and that we can find a program that suits your specific goals.
What is “LTV”?
The “LTV” is the loan-to-value which, as a percentage, illustrates the amount of money borrowed versus the property’s value. LTV is calculated by dividing the loan amount by the property’s value.