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 broker. 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 broker. 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!

What does it mean to be a Mortgage Broker?  Unlike banks, mortgage brokers specialize only in mortgage lending. Unlike mortgage companies who can only offer their own products, mortgage brokers have the ability to use many different companies products, thereby providing you with a larger variety of options and choices for your financing. Instead of being captive to whatever pricing one particular company chooses to offer, we can shop the competition and pass the savings on to you.

Does it cost to work with a Broker?  Normally the cost is less, and here’s why. We originate, close and fund mortgage loans and deliver them to the nations largest mortgage servicers for less than the cost they would pay to originate the loan themselves. As one of the premier mortgage brokers in Southern California, we receive better pricing than most, and you can benefit from our savings.

Is 20% of the home price required for Down Payment?  No, there is no set amount that you must put down. Mortgage loans can now be tailored to fit each home buyer’s needs and financial resources. The standard was 20 percent, but lenders today recognize that 20 percent of the sales price is a tremendous amount of cash for most first-time buyers. Today first-time buyers commonly put down 3, 5 or 10 percent of the sales price. For down payments of less than 20%, mortgage insurance (MI) will be required and associated costs will apply.

Why and how the 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.

Can young people get a home loan?  Age makes little difference. Most first-time home buyers are in their twenties or thirties. In fact, 50% or more of new home mortgages are made to people under 35. Many prospective home owners worry that they must fit a particular profile in order to qualify for a loan. It’s not true. The fact is, among all the things that mortgage lenders look at, the most important – whatever your background – are these: what is your income compared to the debt you’re currently carrying, what is your credit history, and how much do you have in savings…

Are mortgage payments more expensive than rent?  If you’re paying rent, you might be surprised to see how little the difference is between making home payments. In many cases, mortgage payments can be close to, or even less than your current rent payment. Besides this, owning a home is a solid, long term investment which offers substantial tax benefits… something renting just can’t compete with.

What is the minimum income I can earn and still qualify for a mortgage?  There is no set minimum income requirement for mortgage qualification. However, you need to be certain that your income level can support monthly mortgage payments. Fortunately, as a qualified Loan Officer I can help take the guesswork out of knowing whether or not you can qualify, and how much of a loan you may qualify for.

Call me for a loan Pre-Approval before you even start looking for a house.   Call me @ 858-750-0931

Will a late credit card payment disqualify me from getting a mortgage?  Late payments (especially those under 30 days) should not automatically disqualify you from getting a loan. Almost everyone has had trouble making a payment at one time or another. You’re only human, and mortgage lenders know this. Many people find themselves in difficult financial situations, often due to illness, divorce or temporary unemployment. If you can demonstrate that the problem is in the past, and you have been able to re-establish a good track record for a sufficient amount of time, you should still be in a good position to get a mortgage loan. There may be a reasonable explanation, so speak to your lender honestly and openly about the situation. It’s important to remember that lenders don’t just look at your past history, but also at your ability and willingness to pay in the future. Sometimes, you may not be ready to buy a home. Doing so may only compound your problems. If you don’t qualify for the loan you want today, work with us to address the issues that have kept you from getting your loan approved. With a little help, you may be just a few months away from getting that new home.

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, and if you have any questions at all, please call me at (858) 750-0931.

“By Ed Eissa”