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Frequently Asked Mortgage Questions
What Fee's can I expect to pay for my mortgage? Fee's
vary from state to state, and lender to lender, but as a rule you can expect to pay
between 1 and 5% of your loan amount in fees. Most lenders charge an up front fee
called an origination fee for their services. Other typical fees include an
appraisal fee of $275 to $400, a processing fee of $375 to $500, document preparation fees
(less than 1% of your loan amount), taxes, insurance, and title fee's. Your lender
will be able to provide you with an estimate of all fees after he has gathered your loan
information. Ask for a copy of your "Good Faith Estimate" from your
mortgage professional.
What is the difference between a mortgage broker and a bank? There
are a few differences between them. When you apply for a mortgage at a bank, the
bank normally has one rate based on your credit scoring. Most banks are also not
very flexible if you have had any credit problems in the past, or if you are self
employed. Mortgage brokers on the other hand have access to hundreds of potential
lenders, each of them with different loan programs and rates. Unlike a bank that has
one or two programs, the mortgage brokers job is to locate a loan that fits your needs
from all the lenders that they work with. Mortgage brokers also have access to many
lenders that can get you a mortgage even when you have been turned down by and bank.
How long will it take me to get a mortgage? Time periods vary
greatly based on the type of loan that you want, and what your particular situation
is. As a rule you can expect to be able to get a loan within 30 to 90 days.
Some of the biggest delays come when your loan officer is unable to get the information
from you that he needs to get your loan approved by a possible lender. The best way
to speed up the process is to respond as quick as you can with any information that the
loan officer requests of you, and then to verify that they have received it. It also
does not hurt to contact them every week or so to check on your status and see if there is
anything else they need.
What if I have more questions? The best way to get your questions
answered is to actually contact a mortgage broker. Brokers will be happy to answer
all your questions, and will ask you quite a few as well to make sure they are getting you
the right loan for your particular situation. The best way to get started, is to
just make contact.
