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Acronym for the elements of a mortgage payment: principal, interest, taxes and insurance.

Lenders qualify a borrowers Debt To Income ratio (DTI) using Principal Interest Taxes and Insurance (PITI) combined even though some borrowers only want to pay the principal and interest to the lender and pay the taxes directly to their local government and insurance directly to their insurance provider.

Principal is the amount of money you borrowed from the lender. Interest is a fee you pay back to the lending institution for borrowing the money. Taxes indicate your property taxes, these include items like your city tax, county tax and school education tax. Insurance is the coverage you have on you house to protect you from loses.

PITI is typically quoted on a monthly basis and compared to a borrower’s monthly gross income by means of computing the individual’s front-end and back-end ratios, which are used to approve mortgage loans.

Other monthly payments that are included in the PITI include Mortgage Insurance and Home Owners Association (HOA) dues.

Although lenders require reserves of PITI even when refinancing, many lenders will allow the cash out amount from the refinance, to cover the PITI reserves.

Another factor that some people over look which is not a part of your PITI is your maintenance on your home. You will need to make sure you can afford things like yard work and simple repairs when taking out a loan on a property.

Lenders often require cash reserves equal to several months PITI, in order to qualify a borrower.

Investment properties often require a minimum of 6 months PITI reserves for a mortgage, primary properties may not require any reserves depending upon credit, and many subprime lenders do not require any reserves.

The total PITI payment is used to calculate qualifying factors such as your debt ratio and the amount of cash reserves that may be required on a loan. Even if a borrower chooses to waive an escrow account and pay the taxes and insurance themselves.

PITI is the total monthly payment that must be made for that mortgage loan. Many times taxes and insurance are only estimated by the mortgage broker giving a quote which is why different good faith estimates vary so much from broker to broker. Always ask for the PI payment to compare loan programs as well as the APR which includes the real total cost of the loan.

Lenders use the proposed PITI together with the borrower’s income to evaluate the borrower’s capability to repay the loan.

The origination fee is a fee that is paid to the bank or your loan broker for his or her services in originating the loan.

Broker or loan origination fee is paid to the person handling your loan application. This fee can be a set price or can be stated as percentage of your loan amount. The origination fee can be located at the top of your good faith estimate and should be disclosed within 3 days after applying for a home loan.

Most points are paid to receive a lower interest rate from the lender/broker. The difference in savings over the life of the loan can make paying points a benefit to the borrower.

If you intend on staying in your home for an extended period of time, it may be worthwhile to pay additional points in order to obtain a lower interest rate.

Any significant changes in fees should be disclosed in the final GFE.

Origination fees are charged by the lender or Broker and are expressed as a percentage of the loan amount. They must be disclosed on the Good Faith Estimate and on the final closing papers, commonly called the HUD.

An origination fee is charged by a lender for processing the loan, expressed as a percentage of the mortgage amount. It’s normally one percent of the loan amount.

These loans are possible. The lender will give the broker a commission if you take a loan with a higher rate then what you qualify for at even (par) pricing. So if you qualify for a 7% and take a 7.5% instead then the lender will compensate the broker. The broker then uses this compensation to cover all of your fees for the loan plus pays himself. In the end you can get a loan for no points and no fees and the broker still gets paid for the work.

Another way to have fewer out of pocket costs associated with acquiring a loan and still get a decent rate is to work with the seller of the property and ask for 3% seller contribution. You can use this to pay for closing costs and/or down payment. This is becoming more and more common these days and most state promulgated contracts provide a place for this amount. In hot markets it may not be as easy to get this accomplished.

If you have a home that you believe you will live in for the rest of your life (or at least a long time) then it will be in your best interest to take the lower interest rate and pay the closing costs. The closing costs can most often be made back within the first 3-5 years of your loan; whereas in taking the no closing cost loan with a higher interest rate, you are stuck with that higher rate and payment for the life of the loan.

Have your mortgage broker calculate the exact length of time you should be in your home in order to have a no cost loan, and paying higher interest, make sense. Basically you take the costs you saved and divide by the increased monthly mortgage payment. This will tell you how many months you can have this mortgage before it starts costing you to have chosen the “no cost” mortgage.

No Points No Fees or Zero Closing Cost loans are usually not available on smaller loan amounts.

Often its best to pay the points. Have your broker figure out which way you come out ahead.

There are Mortgage Brokers and Agents who have special pricing available with the banks they work with, and who have worked out special pricing with their title and escrow companies. Some of these Brokers can offer borrowers a Cost Free Refinance, at truly competitive interest rates. Make sure to always compare the Good Faith Estimates(GFE) between the brokers/banks you are considering doing business with. The GFE’s will show your total costs as well as the interest rate and APR.

If you are planning to stay in your home for 1-2 years you should consider a zero cost loan.

Such a program may end up costing you significantly more in the long-run depending on the loan type.

Be careful of those that tout “no fee loan,” when in reality they only intend on not charging origination points or processing fees. In this particular case the lender still will be charging all other fees associated with the loan. A Good Faith Estimate should dispel what is really being paid for or assumed in the financing.

The no points or no fee loans are best for short term loans. If it is a property that you plan on living in for a short time than the thousands that you save in fees will be greater than the savings for the first few years allowing you to close your mortgage with less money out of your pocket or a lesser loan amount.

Not all No Fees Loans are created equal. Some No Fees loans require the home buyer to pay for home inspection and appraisal report. Others only mean no lender fees. Applicants are still required to pay for third party fee such as recording fee, taxes, insurance, etc. When shopping for No Fee loans, it is important to compare the Good Faith Estimates and find out what exactly are being paid by the lenders.

Become an educated consumer and directly ask the lender what is included in the “no fees” loan and if it covers third party fees. Then ask how it will effect your interest rate.

The key thing for the borrower to realize is that in a No Points No Fee Loan is does not mean that the points and fees are simply being given away. They are just being paid for in a different way. What way is right for you will depend on your individual situation. Unfortunately, much of the advertising for a No Point No Fee Loan implies the opposite, that the lender is giving away these costs. Smart consumers need to understand that they are being way to naive if they believe that to be true.

As an example, consider a no-down-payment auto lease, where the dealer still expects you to pay taxes, tag, fees and freight. The down-payment in this example would equate to the lender fees, but your local city and/or county government still expects (requires) you to pay the county tax, and you must pay to record the deeds, etc. A complete, detailed good faith estimate, or GFE, will highlight line by line what fees you are being asked to pay.

A guide to help you shop for a mortgage more effectively:

Decide the Mortgage Features You Want: You cant compare prices of different loan providers accurately unless you can specify exactly what you are shopping for. When you shop for an automobile, you decide beforehand that you want, e.g., a 4-door Toyota Corolla with Bose speaker system, red trim, etc., etc. Similarly, when you shop for a mortgage, you must know the type of mortgage you want - whether fixed-rate (FRM) or adjustable-rate (ARM), and if it is an ARM loan, what kind? You must also know your preferred term, points, down payment, lock period and options, including interest-only, prepayment penalty and waiver of escrows.

Your mortgage broker will be able to offer you more loan programs from many different lenders when compared to a local bank. Your local bank can only offer there in house loan programs in comparison to the brokers ability to add new lenders with the newest loan programs. To ensure you have the widest selection of loan programs to choose from choose a mortgage broker.

Disclose all relevant financial information to your mortgage broker. Mortgage professionals are not there to judge your spending habits and how much you make. Rather, they are there to help you achieve homeownership within your financial means. If you are in any situation in which limits your ability to afford a mortgage, tell your mortgage professional. He can often structure a combination of loan programs to help.

Shopping around for a home loan or mortgage will help you to get the best financing deal. A mortgage, whether it’s a home purchase, a refinancing, or a home equity loan is a product, just like a car, so the price and terms may be negotiable. Shopping and comparing may save you thousands of dollars. Brokers can shop for you.

Always get quotes from 2-3 different mortgage professionals. This will allow you to make sure you are getting a deal that you feel comfortable with. If a couple of quotes are close but one seems to have a 1/8% lower rate or the closing costs appear a couple hundred dollars cheaper don’t immediately go through with the cheaper deal. Closing costs can be calculated slightly differently, and the cheaper deal initially may not be the cheaper deal in the end. At this point I highly recommend going with the mortgage professional that you feel more comfortable with. Remember the old saying “you get what you pay for”. Going with the absolute cheapest is not always the best. The mortgage professional who returns all of your calls (when he/she says they will), is completely knowledgeable about your mortgage loan and all of the details and you feel you can trust should be the final decision maker for you.

One key factor in determining which loan program to choose is knowing how long you’ve determined you will stay in the home you are buying.

When shopping for a mortgage on line use a site that allows you to choose the lenders or mortgage brokers that your information will be sent to. Applying directly to the lender/brokers site will help you to avoid being inundated with phone calls from websites that sell your information.

Never forget that the integrity and straightforwardness of the mortgage professional with whom you are dealing is paramount! Always make sure you are dealing with someone who is properly licensed, experienced and has a good reputation. Ask for the names of one or two previous clients for reference.

Always request a copy of the Good Faith Estimate (GFE) from your mortgage broker. This estimate will let you see upfront the fees you will be charged and the interest rate you will be receiving.

This is why it is important to “shop” for your mortgage with lenders on the very same day. Key factors can see mortgage rates changed several times in a given week, sometimes in the same day. The lender that you get a rate from on Monday may not be able to give you the same rate on Wednesday.

When you apply for a mortgage, you will also need to sign many disclosures. These disclosures are there to provide you with vital information about the loan you are applying for. It is in your best interest to read and understand what is in each of these disclosures. If you do not understand, ask your mortgage professional. It is their job to help you through this process.

While there are many generic disclosures that are required, some states have additional specific required disclosures. You can check with your state banking commission to find out what your state specific disclosures are.

One of the disclosures that you will be required to sign is the Release of Information. This will allow your mortgage professional to obtain all the necessary paperwork to close your loan. Some things that they will use this for is your verification of employment (VOE), verification of rent (VOR), payoff, and anything else that the new lender may require.

The servicing disclosure informs the borrower of their rights when the servicing of the loan have been sold to another investor.

The important disclosures you want to pay special attention to, are the Good Faith Estimate, the Truth in Lending disclosure, and the application itself.

One of the disclosure forms that you will be required to sign will be the right to receive a copy of your appraisal report. This form states that you have a right to receive a copy of your appraisal report, and all that you need to do if you would like a copy is write to your mortgage professional within 90 days of closing and they must supply you with a copy.

Although these disclosures may seem tedious, it is important to read them, sign them and return them to your loan officer quickly. Delays could hold up your loan.

With the ever increasing threat of identity theft, it is important to remember, disclosures actually work as a protection for you.

As part of the mortgage application, a Equal Credit Opportunity Act disclosure to be signed. This disclosure informs loan applicants that they have the right to fair credit opportunities, and that discrimination on the basis of race, sex, religion, country of origin, age, etc. is prohibited.

Looking for a house without getting pre-approved. Do not confuse a pre-approval with a pre-qualification. When you are pre-approved you become like a CASH BUYER and have more negotiating clout with the seller.

Have an inspection done by a professional. Don’t take the sellers word that they have made repairs. Unless you are buying a new house where you have warranties on most equipment, it is highly recommended that you get a property inspection, a roof inspection, and a termite inspection. This way, you know exactly what you are buying. Inspection reports can be great negotiating tools when it comes to asking the seller to make repairs. If a professional home inspector states that certain repairs be done, the seller is more likely to agree to do them.

Remember that just because a mortgage broker or a bank, says that you can afford the home you are looking at, does not mean that you can actually afford, or feel comfortable with, the monthly payments. Know exactly what the monthly payments are, including taxes, insurance, association fees (if applicable), and any other fees that may be associated with the home on a monthly/yearly basis. Once you know the total cost of owning that home, then decide if it is affordable, while taking into consideration all of your other monthly bills. The last thing you would want to do is rush into a house, that you are unable to afford in the long run.

Do not choose a lender just because they have the lowest rate. Not getting a written good faith estimate. While rate is important, look at the overall cost of your loan. This includes looking at the APR, the loan fees, as well as the discount and origination points.

Get your rate lock in writing. Get a written statement which details the interest rate, the length of the rate lock, and detail about the program. This will save you a lot of trouble if rates increase.

Many Realtors will not show you homes before being pre-approved because they do not want to waste your time, their time, and the seller’s time.

Do not sign documents without reading them. Do not sign documents in a hurry. Whenever possible try to get documents that you will be signing ahead of time so you can review them. It is advisable to ask for a copy of all loan papers you are signing a few days ahead of the close of escrow. This way you can review them and get your questions answered. Do not expect to read all the documents during the closing - there is rarely enough time for that.

Always order a title search and purchase title insurance for the property you are buying. Mortgage banks always require a title search and title insurance. Even if you are buying from a trusted relative or friend and pay with cash or have the seller provide financing, without involving a bank loan, don’t be tempted to skip title search to save on closing costs. The fact is, title defects can stem from a time before the sellers took possession of the property. While the title insurance the sellers purchased when they bought the home protects them for as long as they own the home, that policy does not protect you. The one-time cost of a title search and title insurance may save you from a potential investment disaster.

Do not bid on a house that you have only looked at once. Many home buyers are busy with their lives like everyone else, so they look at homes when they have time, evenings and weekends. Make sure if you find a home you like, you go back and walk through it again at least once at a different time.

If there is something unusual about the home or the property that you think you can fix once you own it, make sure you know what you are getting into. Get estimates for the work, talk to a contractor, or your local government to see if you will need any special permits. DO NOT go on the word of your realtor, home inspector or appraiser, they are all very knowledgeable and can give you guidance, but ask others as well. You don’t want to end up in a home with a huge eye-sore that you can do nothing about.

If there is something in particular that is on the property that you want to remain with the property when you purchase it then make sure it’s in the contract. You can avoid many headaches by putting everything in writing. This also means any repairs that show up on the inspection report you will want the seller to do before you purchase should be put in writing.

One of the most common mistakes Buyers make when purchasing a home is assuming that sellers are the ones who pay real estate commissions along with other closing expenses and seller’s concessions. One way or the other, this money comes from the buyer.

If you are planning on purchasing a home, consider using a loan professional.

All well trained loan officers know that professionalism and service come first and foremost. Personality goes a long way and you want to feel totally comfortable during the process. Find a loan officer that you mesh well with. It’s not just about this one transaction, it’s about a long lasting relationship with someone you can always count on.

Please contact us now at to speak to a top Mortgage Professional in Denver

I would love to discuss this topic and answer any other questions you may have.

A good Loan Officer will save you time as well as money. A reputable Loan Officer will also disclose all his fees upfront, via the Good Faith Estimate.

When looking for a loan officer online, be sure to find one that is licensed to originate mortgage loans in your state. There are many mortgage websites on the internet that gather potential loan applicant’s information and sell them to loan brokers for profit. These “lead” websites never intend to work on your loan to begin with. To avoid having your information being sold, resold, and be called on for the next year to come, avoid companies that promise to have “4 or more banks competing for your business”.

When looking for a qualified mortgage professional, be sure that they are licensed in your particular state. It is almost always easier working with people that you can go and meet with, and have them explain everything you need to know face-to-face.

Purchasing a home can be the biggest investment in your future that you will ever make. Going it alone can be a mistake, unless you have experience.

A loan professional can save you thousands of dollars on your next purchase.

Finding a honest, reputable and educated loan officer is very important. When you are shopping rates, payments and programs for a mortgage you should also consider how you feel about the person you are working with. Working with a great loan officer can make the home loan process enjoyable and can make a memorable experience that you won’t forget. Your loan officer can obtain financing for first time home-buyers and for consumers looking to put little to no money down. Your loan officer can also provide mortgages for all credit types along with all income types.

It is just as important to find a reputable mortgage broker if you are refinancing. A good mortgage professional will work with you to find the best mortgage for your situation..

In order to understand how Mortgage Brokers get paid, first one should know WHY Mortgage Brokers get paid. Mortgage Brokers are intermediaries that work with lenders to obtain financing for borrowers who wish to purchase residential or commercial real estate. The reason an individual or organization would obtain the services of a Mortgage Broker would be to secure financing at the lowest rate that the market will offer at that particular time for the type of property they wish to purchase.

Brokers are sometimes paid by both the lenders who underwrite the mortgages and the consumers who get them, and it’s important to look at the documents to make sure the broker isn’t getting paid too much or double-charging you.

Just like a bank loan officer, a broker gets paid for performing all of the work necessary to originate, process, and close a loan, and for the expertise they provide in matching the client and their needs to the right lender and program. These days there are hundreds of lenders with thousands of loan programs. Many customers ask us why they should use a broker, rather than going directly to a bank, and the reasons are simple.* First, a bank loan officer represents the bank, not you. Their job is to originate loans for the bank, and only for the bank employing them. A broker represents you. While they work with banks, you are their customer, and they will represent you when interacting with any and all of their bank relationships.* Second, since the loan officer represents only one bank, they can offer you only the products of that bank, whereas a broker generally represents anywhere from 10 to several hundreds lenders. The broker has far more options to find the best product and the best price for your specific needs, and if for some reason they do not have the ideal fit, they can work with hundreds of additional lenders to find the perfect fit.* Third, you may believe that a bank will offer you better rates. Well, that is rarely the case. The bank’s treasury department has a required rate of return (yield) on the loan, called the ‘wholesale rate’. The bank’s retail loan officer must provide the bank with the required yield, and then they must generate enough additional revenue to pay the loan officer, plus the high operating costs necessary to run a retail bank loan division and its many layers of management and support. A broker will have access to that same wholesale rate, but the additional revenue they must generate to cover salaries and operating costs is far less, since brokers do not have the large infrastructures that the bank has. The law requires that brokers disclose the fees they earn, while banks are not required to do so. Brokers originate 50-60% of the mortgage loans in the US because they provide the best service at the best price - when was the last time a bank provided you with both?* Finally, brokers only get paid if they close the loan. Having someone represent you is always better for you when their income is tied to their success in serving you, the customer.

Mortgage Brokers get paid to provide borrowers with financing to purchase or refinance homes. Most Mortgage Brokers only get paid when they close your loan. Mortgage Brokers are usually paid at closing from the borrower or out of loan proceeds. Mortgage Broker fees are usually capped by each state to prevent them from taking advantage of borrowers. Mortgage Brokers fees can be found on the Good Faith Estimate which are required by law to be shown to borrower within 3 days of applying for a home loan.

A combination of payments by origination fee paid by the borrower and a premium paid to the broker by the bank does not necessarily denote excess charging. In many cases that is the proper way to price a loan in order to structure the loan’s rate and fees to provide the most benefit to the borrower’s situation.

If you use a mortgage broker, you usually pay a fee for services or you pay additional money to your lender (sometimes the extra money is tacked on as an additional point on the mortgage) and then the lender pays the mortgage broker

In many instances Mortgage Brokers are paid by both the borrower and the Lender. This ensures that the borrower receives a favorable rate, while the Mortgage Broker is able to receive adequate compensation. The best method of payment will depend on your individual situation.

So why wouldn’t a borrower go directly to a bank for mortgage financing? The reason is because a Mortgage Broker is able to obtain the same financing at Wholesale Interest Rates, while a consumer will only be able to obtain financing at Retail Interest Rates. As is the case in any industry, Wholesale is always less expensive than retail. For this service, Mortgage Brokers are paid a fee, either directly from the borrower for obtaining favorable rates, by the Lender for obtaining a client that they otherwise would not have obtained, or a combination of the two.

One way a Mortgage Broker can obtain their fee is through charging a fee called an Origination Fee. This fee is paid to the Mortgage Broker for Originating the Loan. The Origination fee is added to the other closing costs that must be paid by the borrower. These fees can be paid out of pocket by the borrower, or in the case of a refinance, or 100% financing loan, the fees can be rolled into the loan. The amount of the Origination fee that is charged is generally a percentage of the loan amount. The amount of the fee is based on the difficulty level of the loan. For this reason a subprime loan will generally carry a higher Origination fee than a conforming loan.

Another reason Mortgage Brokers are paid for their services is because very often, they are able to obtain financing for individuals that would not have been offered by any traditional bank. Borrowers who have poor credit, little to no money for a down payment, an unusual property type, or a multitude of other issues will always find it easier to obtain financing through a Mortgage Broker.

Mortgage Brokers can also be paid by the Lender that actually makes the loan. The Lender compensates the broker for bringing clients to obtain loans. This fee is referred to as “Yield Spread Premium”, and the amount generally depends on the interest rate at which the loan is made to the borrower. The higher the interest rate with respect to current market conditions, the higher the Yield Spread Premium paid to the Mortgage Broker. This method of payment is utilized by many brokers because it reduces the out of pocket fees to the borrower while still allowing the broker to obtain compensation for their services.

Although everyone enjoys getting a “good deal”, it is prudent to be suspicious of a mortgage broker who charges significantly less than the norm. A good mortgage broker is a trained, experienced professional who must be properly compensated for his/her services. Look at it this way. Would you feel good about being operated on by a doctor who works for way less money than other doctors? As in just about everything else in life, paying too little often means a drop off in the quality of the goods or the service.

The bottom line is the mortgage broker gets paid for a tremendous amount of work having to coordinate the lender (closing coordinator ampersand funder), title company (closer ampersand assistant), Appraiser ampersand Insurance company. In most cases this is an arduous task to get each of these people to work in synergy. This demands a great deal of time and effort. In addition mortgage brokers find the best lender for your situation and every lender has different guidelines to follow for underwriting conditions. This is a fluid industry and guidelines for lenders change on a constant basis. This makes the tasks of a mortgage broker more challenging.

The GFE is a list of all the closing cost that are involved in the loan; such as discount points, processing fees, underwriting fees, title fees, taxes and insurance, and any other fee that might be associated with the loan. 800 section of fees- charges from the broker, 900 section –charges required by the lender(pre paid interest, mortgage insurance, etc) 1000 section- reserves required by the lender(taxes and insurance), 1100 section- fees charged by the title company(closing fee, title search, title insurance, etc) 1200 section- fees required by the local government( recording of the loan, etc)

Borrowers must understand that there is no requirement in the law that the Good Faith Estimate be accurate within any certain percentage to the fees that are actually charged at closing. It is only required to be issued “In Good Faith”, a somewhat arbitrary standard that is difficult to prove one way or another. Working with an experienced, licensed and knowledgeable mortgage professional rather than just whoever purports to have the lowest rate will likely increase a borrowers chances of having very similar fees at closing to those shown on the GFE.

There are several reasons why the GFE may change from when it is originally disclosed to what is represented at closing. If the loan amount changes this will affect any points on the loan as well as some of the title charges. If the date of closing changes this will change the per diem interest. Estimates may be included for the taxes and insurance, when the actual numbers are determined this can change the GFE. If the broker needs to change lenders for one reason or another this may change some of the fees, as each lender has different fees that they charge. If the rate changes for some reason (borrower’s credit drops and they no longer qualify) this can affect the closing costs. There are many acceptable reasons for the GFE to be inaccurate and have some small changes by the time you get to closing. If the changes are major make sure you have your broker walk you through the original and final GFE and explain any discrepancies. Don’t be afraid to ask questions. There are some changes that may not be acceptable to you such as additional points. If this is the case try to negotiate with your broker, don’t be afraid to walk away. In most cases you are entitled to a copy of the final HUD-1 at least 24 hours prior to closing.

The Good Faith Estimate along with the Truth-in-Lending is required by law to be given to borrower within 3 days of applying for a mortgage. They need to be signed and dated by borrower to ensure compliance.

The best way to determine which lender actually offers you the best mortgage deal is to carefully examine each lender’s closing cost estimate. Be aware however, that not all closing cost estimates are alike. In an attempt to make themselves more attractive to customers, some lender’s closing cost estimates leave out significant fees. Generally speaking, a Good Faith Estimate should include the following: the loan origination or broker fee; points; prepaid homeowner’s insurance; an appraisal fee; title search and insurance; tax adjustments; and mortgage insurance if you are putting less than 20% down.

A Good Faith Estimate is just that, an estimate and subject to change. In fact, final closing costs cannot be estimated until closing when the final HUD-1 settlement document is presented.

People often believe that the Good Faith Estimate is the best way to compare loans. In fact, that is not true. The Truth-in-Lending disclosure (TIL), which also takes into account your APR, is a more accurate way to compare loans, in terms of their cost to you.

The fees listed on the GFE are estimates only. Depending on many factors, your GFE may change during the loan process, and for that reason it cannot be considered a commitment to lend.

The charges can vary on the Good Faith Estimate. Escrow accounts will vary depending on how many months need to be set-up, when you close will affect the prepaid interest, different lenders will have different fees, and some general fees are added which may not be needed such as a survey or a pest inspection.

The Good Faith Estimate is only an estimate or range of charges. For example, the lender may not know the costs for a settlement agent that you choose, or the exact amount that will be collected for an escrow account for taxes and insurance.

Whether you are seeking for a home mortgage refinance or a home purchase loan; for your first home or an investment property; request for a mortgage quote for free. Home mortgage loans for all credit types are offered: bad credit to excellent credit. As a mortgage broker we shop for you to find the most competitive mortgage rate quotes and the best home loans in the industry.

Whenever I give a client a free rate quote I am quoting the lowest possible rate available for the program that best benefits my client on the day that I am quoting. Clients must always understand though that a rate cannot be guaranteed until it is locked by the lender. this applies to anyone who quotes you a rate - it must be locked to be valid.

When comparing rate quotes make sure you consider the fees. Sometimes the fees involved in a loan will make one interest rate more attractive even if its higher.

Some of the things that you will need for an accurate quote is what your credit history looks like, if you have any bankruptcies or foreclosures, what your gross income per year/month is, if you are obligated to pay child support, if you are w-2, 1099 or a self employed borrower, the amount of your total payments per month, your homes value ampersand how much you currently owe. After answering some of these questions we will be able to give you a more accurate rate quote.

If you get multiple quotes try and get the all on the same day, interest rates can vary from one day to the next.

Be sure to provide accurate responses and information when requesting a rate quote.

With your quote for a rate you should also get a quote for the APR and get a copy of a Good Faith Estimate (GFE) for closing costs.

Make sure your quotes are in writing. It should cost you nothing to get a free loan quote.

Contact me here to discuss your free rate quote!

If taking someone at their word makes you nervous, ask for a Good Faith Estimate.

Interest rates are dependent on the level of inherent risks the lender banks are taking in granting mortgage loans. The more income and asset documents one can supply, the lower the interest rate will be. For this reason, when getting rate quotes from multiple mortgage brokers and banks, be sure to furnish the same and true information. Telling one broker that the application will be full-documentation and another that it will be a no-documentation loan will result in significantly different interest rate quotes.

If your mortgage broker locks a rate for you it does not obligate you in any way to commit to doing business with that person. You can always lock and look. You should always try to get at least 2 separate quotes to compare.

After you request a rate quote you, the mortgage broker or lender has 3 days after taking a complete application to send you a good faith estimate.

You will pay for what you get when it comes to expertise. The cheapest guy is not always your best bet. You might want to think about doing business with an experienced professional who is well versed in the type of loan you that fits your situation. The Mortgage Broker should take your whole financial situation into account when planning a mortgage for you. There is much more to look at rather than your rates and fees. With the right plan, you might have slightly higher fees but overall you will save thousands of dollars due to other factors.

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