Who do I contact for information
and questions?
If you have any inquiries prior to filing an
application, please call 1-858-222-7534. Our hours are Monday through Friday,
6am to 6pm PST.
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Is there any
cost to apply?
No. BrokerMortgages.com does not require an up-front
fee to submit an application and begin the loan process.
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How quickly will my loan be
approved?
Once you submit your application your loan will
immediately begin the underwriting process. In most cases BrokerMortgages.com
will deliver your credit decision within 24 hours.
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How quickly can I close my loan?
The time needed to close your loan
depends on a variety of factors, including the time needed to obtain required
documentation and when you can sign your loan documents.
You are pre-approved minutes after you apply. We have hundreds of lenders and they can
differ slightly in their turnaround times. One advantage to being a broker is
that we can choose the lender that best fits you and your needs.
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Do I have to
apply online?
You can either apply online or by calling our toll-free
number 1-858-222-7534.
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What is the difference between pre-qualified and pre-approved?
A pre-qualification is issued by a loan officer. After interviewing you,
he or she determines the dollar value of a loan for which you can be approved.
However, loan officers do not make the final approval, so a pre-qualification is
not a commitment to lend. After the loan officer determines that you
pre-qualify, he/she then issues you a pre-qualification letter. This
pre-qualification letter is used when you are making an offer on a property or
just to know that you are pre-qualified. The pre-qualification letter indicates
to the seller that you are qualified to purchase the house you are making an
offer on, witch in turn puts you in a position to negotiate favorable terms for
yourself.
Pre-approval is a step beyond pre-qualification. Pre-approval involves verifying
your credit, down payment, employment history, etc. Your loan application is
submitted to an underwriter and a decision is made regarding your loan
application. If your loan is pre-approved, you are then issued a pre-approval
certificate. Getting your loan pre-approved allows you to close very quickly
when you do find a house. A pre-approval can help you negotiate a better price
with the seller, since being pre-approved is very close to having cash in the
bank to pay for the house!
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What is a
credit score?
The use of a statistical
model to objectively evaluate all the credit information available in a single
repository (Bureau). Bureau scores are sometimes referred to as FICO scores and
are calculated by a system of scorecards, developed for each repository. There
are three credit bureaus that most lenders use: Trans Union, Equifax, and
Experian, all three of which are privately owned. Note that not every lender
uses credit scores for loan qualification. More information on your
credit score.
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What is a home equity line of credit?
A home equity line of credit is a form of revolving credit in which your home is
used as collateral. Home equity lines of credit feature a variable interest rate
and a draw period.
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What is a draw
period?
The draw period is the time frame during which you are allowed to use the credit
available on your home equity line. When you borrow funds from your line of
credit it is referred to as a draw.
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What is the difference
between a home equity loan and a home equity line of credit?
While both are considered second mortgages, with a home equity loan, all funds will be
paid at closing. A home equity line of credit provides you with a credit line
that you can borrow against at any time within a set time limit and up to a
maximum amount.
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Does the appraiser have to come into my home to perform an appraisal?
Some loan programs will call for a "drive by" appraisal witch doesn't require the
appraiser to enter the property. In many cases, we won't need an appraisal at
all, or the appraisal process can be completed electronically. But most appraisals
do require the appraiser to enter the house.
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What is "cash
out"?
Cash out is cash money that you can use for whatever purpose you desire.
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What is my
maximum loan / line amount?
It is often unlimited to less than or equal to 100% LTV/CLTV
$125,000 on our "no equity" 2nd mortgage programs
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I don't have any money for down payment. Can I still get a loan?
Yes. We offers loan products that will
pay for 100% of the loan/purchase price plus all of your closing costs. Having
hundreds of lenders with in our network affords us much flexibility.
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Can I
get a loan on my home if it is for sale?
Some lenders will with a good “letter of
explanation.” If your home has recently been up for sale, some lenders will
require it be off the market for 90 days before we can provide you with a home
loan on that property.
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Can I use the equity in my existing home as down payment on my dream home?
Yes, with a bridge loan (see next question)
What is a
bridge loan?
A Bridge loan enables you to use the equity in your owner occupied home as the
down payment on your Construction-to-Permanent Home Loan. And during
construction, there are no monthly mortgage payments on the Bridge Loan. This
lets you live in your existing home while you're building your dream home. Your
Bridge Loan is not due until your new home is finished or you sell your existing
home.
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Must I occupy
the residence I'm using as collateral?
No, we have many lenders that will lend
on non-owner occupied, 2nd homes, investment properties, etc.
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What is a negative
amortization mortgage?
It is unpaid, deferred interest. When the mortgage payment being made is less than
the interest due for that month's payment, the amount of interest not paid is
"deferred" and added to the loan balance. Thus, the principle balance does not
decrease (amortize), but rather increases (negatively amortizes).
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What is the
difference between simple and compound interest?
Financial calculations are based on the fact that money earns interest over
time.
With Simple Interest contracts, interest is a percent of the original
principal. The interest and principal are due at the end of the contract.
For example, say you loan $500.00 to a friend for a year, and you want to be
re-paid with 10% simple interest, at the end of the year, your friend owes you
$550.00 (50 is 10% of 500).
A Compound Interest contract is like a series of simple interest
contracts that are connected. The length of each simple-interest contract is
equal to one compounding period. At the end of each period the interest earned
on each simple-interest contract is added to the principal.
For example, if you deposit $1000.00 in a savings account that pays 6% annual
interest, compounded monthly, your earnings for the first month look like a
simple-interest contract written for 1 month at 1/2% (6% / 12). At the end of
the first month the balance of the account $1,005.00 (5 is 1/2% of 1,000). The
second month, the same process takes place on the new balance of $1005.00. The
amount of interest paid at the end of the second month is 1/2% of $1005.00, or
$5.03. The compounding process continues for the third month, and so on.
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What is
pre-paid interest?
This amount represents the interest that accrues between the day your loan
closes and the last day of that month, and is added to your closing costs. After
this one-time prepayment your interest will be included in your regular monthly
payments.
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What is the difference
between the interest rate and the APR?
The
interest rate is the cost to borrow the lender's money. The APR represents the
total cost of the mortgage over the life of the loan, including closing costs
and lender points.
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On a purchase loan, is there
someone who will work with my Realtor?
Yes. Since each loan is assigned to one loan consultant who works with you until you
close, he or she will be able to assist you or your Realtor at any time.
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Can I apply for a
purchase loan before I find a property?
Yes! In fact, if you are in the process of looking
for a property, we recommend that you apply for pre-approval. A
pre-approval will review your financial situation to determine if you are likely
to qualify based on the estimated loan amount and purchase price information
that you provide in your application. A pre-approval gives you greater
flexibility and leverage while you conduct your home search. Please note that we
cannot lock your rate until you specify a property address.
Also, if you need a real estate agent to help you find a house, just let us know
and we'll have one call you!
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Do I
have to have an impound account?
This depends on the lender, your credit and the state your property is in. Some
lenders will charge an escrow/impound account waiver fee and others will not
charge a waiver fee. Once you submit a loan application we can help you
determine if you will need an impound account.
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What is hazard
insurance?
Hazard insurance
protects homeowners against property damage and is required by lenders before
you buy or refinance a home. Hazard insurance shields you against property
damages caused by a fire or a severe storm and should cover the cost of
rebuilding your home. Generally, you have to confirm at closing that you've
secured one year of hazard insurance coverage.
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