Where should I refinance
Where should I refinance - When it comes to time to refinance your mortgage you have many choices availible to you in todays marketplace. Each choice has its positives and negatives associated with it. You will want to be aware of those positives and negatives in order to make an informed choice regarding your mortgage refinance.
One of the biggest factors in determining where you should go to refinance your home is making sure that you find an honest and reputable mortgage company to work with. Referrals from family, friends, neighbors, co-workers, etc... are usually very nice but they are not always available. Therefore, even if you find a company online talk with someone at the company and ask some questions. The more you are able to talk with someone, provide your personal information to them and see what they have to offer you, the better feel you can get for them and you will be able to make an educated decision as to how comfortable you feel with them. Therefore, give us a call and see what you think. We will work hard and do our best to make sure we "earn" your business.
Bank loan officers versus brokers - When choosing a mortgage professional to work with, you need to decide if you are going to work with a loan officer from a bank or a broker. There are some major differences between the two. Here is some of what sets them apart.
Banks use retail rates, while brokers have access to whole sale rates. Brokers are also working with multiple lenders so they have several whole sale rates to choose from. This means they can find the lowest rate for your situation.
Local retail banks sell only their own loan products. If a bank does not offer a loan program suitable for a borrower in a particular situation, rather than going outside of the bank to find the perfect product, a bank loan officer would try to sell to the client the next best thing. A mortgage broker has much more loan programs to offer. In the same situation, a broker can usually go to other banks and structure a home financing plan short of tailored made for the borrower.
Bank loan officers typically offer programs for "A Credit" borrowers or those with the best credit. Mortgage Brokers have access to hundreds of different programs to fit every credit need.
When you work with a broker, you will find out how much the loan officer is being paid in Yield Spread Premium (YSP). This is something that the lender pays the broker, and the amount that is paid is dependent on your interest rate. A loan officer can raise your interest rate in order to be paid more in YSP from the lender. This allows them to charge you less in fees on the Good Faith Estimate (GFE), and in many cases can save you money.
Bank loan officers are also paid Yield Spread Premium, but they are not required to disclose how much they are making.
Loan officers who work for brokers are often paid as 'independent contractors'. As such, they usually are only paid commission and have the freedom to operate how they want (within reason). One advantage of this is that they may be willing to work in the evenings and on weekends if that is the only time that you are available to meet with them. Sometimes they are even willing to drive to your home to save you time and make the process that much easier for you. This isn't always the case, however, so don't expect it.
Online Mortgage - Not too long ago, the phrase "getting a mortgage" painted a picture of our parents driving to a local credit union with a shoe box full of income documents, and would be interviewed by a loan officer and told that they would have a decision in three weeks. Then they would drive on to the next neighborhood bank.
With the advance in technology, shopping for a mortgage has become a matter of a few clicks. Most mortgage brokers today have the ability to directly submit a loan to multiple banks’ underwriting systems. Mortgage programs nowadays are more flexible and require much less documentation. Instead of being delivered in a shoe box, credit documents are scanned, emailed, uploaded, and faxed electronically. Since the introduction of "automated underwriting", most brokers are able to get loan approvals literally in minutes. Luckily, unlike our parents, you will no longer hear the phrase "our loan committee only meets every Tuesday".
Use caution when applying online! There are many scam websites that collect private data. Most states have websites where you can verify the company you are working with is properly licensed rather than a ring of identity thieves.
For security reasons, most mortgage shoppers still prefer to do their research online, but actually apply over the phone. Others feel confident with secure mortgage websites.
Most mortgage websites have a brief form online to get your contact information, as well as a complete application form, to meet the comfort level of their online customers.
The borrower should be careful to fill out an application which promises contacts from several different lenders. They really do mean "several" because the website owners sell off your information to lots of different lenders/brokers. You should always fill out the online application where the broker's office is clearly disclosed on the website.
Whenever you are filling out a loan application for a home mortgage you should make sure that they website is secured before providing any really personal information. If you are just simply providing the basic information such as your name, address, phone number and email a secured website is not nearly as important. The use of automation, online applications and advanced technology has really helped speed up the mortgage process from where it used to be several years ago. Always use caution when doing anything online and you should always check the legitimacy of any company before you decide to buy anything or fill out anything online.
You can tell if a website is secure by looking at its URL or internet address. If the website's address begins with "https://www." as opposed to "http://www." then you know it is secure. The "s" on the end of "http" stands for secure.
Before applying anywhere online, look over the website. Somewhere on the site there should be information regarding the company's licensing. If they do not have their license information on their website, you should probably not fill out an application. If you want to go one step further, you should also verify the mortgage company's license with the appropriate licensing agency.