Objective Real Estate does not perform loans of any kind. We are strictly a Real Estate Company in which both owners were loan officers in the past.
Though we are not a mortgage company, we do know daily what the rates are and what fees you should as a buyer be watching out for thus ensuring our client is receiving Top of the Line service at below market cost.
At the end of the transaction, what you paid for the home is nothing compared to what you may have paid for the money to purchase it. We recommend you work with someone who is courteous, knowledgeable and has an excellent reputation. Though your loan might be with a big bank such as Bank of America or Wells Fargo, their loan officers are still paid on basis points and are not bound to charging a set fee. One individual might do it for X amount of dollars, while someone else would be willing to do it for much less with the same company. This goes for mortgage brokers as well.
Ask your loan officer if they guarantee a closing time
In today's market, loans are taking much longer and you as a buyer have to provide your loan officer with all the paperwork in a very timely manner or you will not close on time. A lot of sellers are now charging a per diem if you do not close on times which can amount to hundreds or thousands of dollars. Does your loan officer guarantee he will close the deal on time or pay the per diems?
If you need a great referral, we can provide you with a couple. We work with reputable loan officers who have your best interest always in mind.
Rate: This is not the Annual Percentage Rate, this is the effective rate at which you will be paying back on for the monthly payment. A rate which is charged or paid for the use of money. An interest rate is often expressed as an annual percentage of the principal. It is calculated by dividing the amount of interest by the amount of principal. Please note that this rate can change until your loan officer locks in the rate.
APR: Annual Percentage Rate. The yearly cost of a loan, including interest, insurance, and the origination fee (points), expressed as a percentage. This is a good indicator of the cost you should be looking for, but always compare GFE's and TIL's when looking to make a final decision.
Hud1: Your closing statement that is prepared by Escrow. Loan officers typically request these multiple times and especially when you are about to go to loan docs. Also ask that it is forwarded to you each time they receive an updated one.
Secondary Market: A market in which an investor purchases a security from another investor rather than the issuer. This is where your loan will most likely end after it is packaged up and completed. Fannie Mea is a perfect example of someone who buys from the secondary market.
Par: Par Rate is the rate that does not cost you the borrower anything but also does not give the loan officer a yield spread premium. (meaning they are not getting paid on the back end of the loan)
YSP (Yield Spread Premium): Lenders all can make money on the back end of your loan. This is called a YSP. Not only do mortgage loans pay this, but also auto loans. The differences in yields on different types of debt securities, a function of supply and demand, credit rating, and anticipated interest rate changes
Other Fees: Know what escrow is charging you. Notary fee's you are paying, any fedex or courier fees. Ultimately you will be paying them. Know what to look for and ask questions. Never be afraid to ask any questions. After all, it is your money.