Home Loans 101

What does a loan originator do?  Can't I just use my bank?

A loan originator has the knowledge and ability to shop a wide variety of mortgage lenders in order to find you the best deal for your particular situation.  No two individuals have the same employment, housing, credit and financial profiles.  You may be able to secure a mortgage from your bank, yet they are limited to a narrow selection of loan products.  As a mortgage broker, I have the freedom to scour through hundreds of loan programs ensuring you receive a custom tailored mortgage with the lowest available interest rate and most favorable terms.

How and why do interest rates change?

My friend, that is the million dollar question.  Many people are surprised to learn that interest rates change daily, even hourly, based on fluctuations in the global financial markets.  An extensive knowledge of the economic indicators which drive interest rates up or down allows me to educate you regarding the current environment and hopefully find the ideal time to lock in your mortgage rate.

​What upfront fees should I expect?

While other loan originators may charge you up-front fees like application fees, credit report fees, consultation fees, (insert ridiculous reason) fees, I believe my customers should not be bothered with any costs until closing day.  Therefore, my services are free of charge until you are fully satisfied and successfully close on your home loan.  The only fees before closing you should expect are from Third Party Professionals such as appraisers and home inspectors.  This makes sense because regardless of whether or not you purchase a particular home, they have rendered you an invaluable service. 

​How is my credit score calculated?

The three major credit reporting bureaus (Experian, TransUnion, Equifax) each have their own unique formula for calculating your score which translates to how risky lenders perceive you to be. I would be happy to review your credit report with you.  As a general rule of thumb, the scores are weighted as follows:

• 35%-Your payment history (Are you paying on time?)
  
• 30%-Your balance vs. your available credit (Are your credit lines maxed out?)
  
• 15%-Credit history (How long have your accounts been open?)
  
• ​10%-Type of credit (Do you have a good variety of credit lines?)
• 10%-Recent inquiries (Are you trying to get a lot of new credit lines at once?)