Who do I contact for more information and questions?
You can call 858-222-7534 if you have any inquiries prior to submitting an application; our hours are Monday through Friday, 6am to 6pm PST.
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.
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.
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.
Do I have to apply online?
No. However, we have an unique Pre Qualification Form tool application that doesn't require a credit check. It's unique because the form covers much of the core criteria of a "loan scenario". From there, we can do preliminary research before or after we talk..This way, we will have a pretty good idea of what you're trying to accomplish from the start. All us this before pulling credit
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, which 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 have 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.
What is a credit score?
A credit score is a mechanism, 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.
How can I calculate a monthly debt-to-income (DTI) ratio?
Monthly debt-to-income ratio means the ratio of the borrower's total monthly debt obligations to the borrower's total monthly income.
How can I calculate a monthly residual income (DTI) ratio?
Monthly residual income means the borrower's remaining income after subtracting the borrower's total monthly debt obligations from the borrower's total monthly income.
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.
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.
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.
Does the appraiser have to come into my home to complete the appraisal?
Some loan programs will call for a "drive by" appraisal which 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.
What is "cash out"?
Cash out is cash money that you can use for whatever purpose you desire. More times than not, it is more than 1% of the total loan amount, cash money.
I don't have any money for a down payment. Can I still get a loan?
Yes. We offer loan programs that will pay for 100% of the loan/purchase price plus all of your closing costs. Having hundreds of lenders within our network affords us much flexibility.
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.
Can I use the equity in my existing home as a 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.
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.
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 principal balance does not decrease (amortize), but rather increases (negatively amortizes).
What is the difference between simple and compounding 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 repaid 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.
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.
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.
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.
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 contact you.
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.
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.