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Client Focus Checklist
Find a broker with a Client Focus… one whose
primary interest is in matching YOU to the best
program for YOUR needs, from a variety of options.
It’s not hard to find one, if you know what
to look for.
Use our free checklist to evaluate as many brokers
and banks as you like. Then pick the one you like
the best… and the one that is the most focused
on YOU. You’ll save money, and accomplish
your goals!
 Download
it Here
[Download
Adobe Acrobat]
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The Prime
Financial Difference
Each borrower has a unique set of circumstances.
We LISTEN to you and then structure a loan to
match your situation. We pride ourselves on our
ability to think outside the box to match
our borrowers with a loan that suits their particular
needs.
You receive the benefit and sound financial advice
of 15 years experience every time you call.
Call as often as you like, and you will always
speak to a live human who knows the circumstances
of your loan.
Our large base of client referrals is evidence
of our expertise and quality of service. Don’t
we all feel more comfortable doing business with
someone referred by a friend?
Read
more
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 FREQUENTLY
ASKED QUESTIONS |
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Use your brain...Use your broker.
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Use your brain... read
answers to common questions, and become
that much more informed. |
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Use your broker... to
answer other questions you have, and
to discuss your options so they make
sense to you. |
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LOAN
LANGUAGE
What
is LTV? - "Loan to value" is
a percentage determined by the amount
you borrow compared to the market value
of the property as determined by a licensed
appraiser. This percentage is a factor
in how much you may borrow, as well as
whether or not you will need to pay "mortgage
insurance".
What
are escrows? - Escrows are funds collected with
the borrower's monthly payment and accumulated
to pay for property taxes and hazard/homeowner's
insurance as they come due. At the closing
of a new loan, several months escrows
are collected to start a new escrow account.
If you are refinancing, leftover escrow
funds from your old loan will be refunded
to you approximately 15 days after closing.
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Is an escrow
account mandatory?
- No, you may choose to "waive
escrows" and pay your own property
taxes and insurance as they come due.
Since most borrowers do not waive escrows,
lenders may charge a one time setup fee
for this exclusion.
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- What's
the difference between a "rate term"
refinance and a "cash-out" refinance?
- The rate term
refinance pays off existing mortgage(s)
to secure a new mortgage loan. Reasons
for new loans are many (e.g. lower the
interest rate, change ownership/title)
and are tailored exactly to each borrower's
need. A cash-out refinance pays off existing
mortgage(s) and also allows you to take
cash out at closing for whatever purpose
you desire, i.e., pay off credit cards,
remodel your home, buy a car, take a vacation,
etc. The LTV described above determines
the amount you may borrow, and therefore
the amount of cash you'll receive at closing.
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What
does amortized mean?
- A loan is amortized
(gradually paid off) over its term (typically
15, 20, or 30 years). An amortization
table shows principal and interest payments
over the life of a given loan at its current
interest rate. During the first few years
of a loan, most of the payment is applied
to interest and not very much to principal.
As the loan progresses towards its final
years, the reverse is true. If you are
able to apply extra principal payments
early on, Prime Financial can show you
several options for saving amazing amounts
of money.
^ To Top
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CLOSING COSTS
- Will
I have out-of-pocket expenses?
- The
only out-of-pocket expense for a refinance
is the cost of an appraisal. All other
closing costs can be rolled into the loan
amount. On a purchase loan, your down
payment will be out-of-pocket, but some
closing costs will be paid by the seller,
as outlined in the Purchase Agreement.
What will
my closing costs be?- Don't let this list scare you!
These costs are part of every
loan no matter where it's done,
but you're often not told about them until
closing. We believe in upfront disclosure
because we have nothing to hide. Our
goal is to keep your closing costs as
low as possible.
Some or all of the following may apply
to your loan depending on your specific
situation:
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- Origination fee: This
fee is expressed as a percentage of the
loan amount. We charge a 1% origination
fee; it's how we get paid to work on your
loan.
Credit report: the fee charged
to provide the lender with a report detailing
your credit history
Processing fee: About $400 to cover
the cost of processing your loan. These
are the only three fees you pay Prime
Financial. All the rest are lender or
title company fees.
Points/Discount Points: Fees charged
by the lender to customize your loan.
For example, points may be used to buy
down the interest rate, obtain a "stated
income" loan (no verification of
income), waive escrows, etc. In many cases,
there are NO points charged at all.
Appraisal fee: usually paid for
at time of appraisal
Property taxes: If you will have
an escrow account, several months of taxes
will be collected from you at closing
to deposit in your account.
Hazard (homeowner's) insurance:
On a purchase loan, the lender requires
you to pay the entire first year's premium
plus a few months if you will have an
escrow account. On a refinance, the amount
of homeowner's insurance placed into escrow
will depend upon the renewal date of your
policy. Your escrow account will
pay all future taxes and insurance bills.
*For more information about escrows, see
"What are escrows"
above.
Flood Certification Fee: a certification
stating whether or not the property is
located in a flood zone to determine if
flood insurance is necessary.
Interest to End of the Month: Lenders
charge interest from the date the loan
is funded until the first day of the following
month.
Mortgage
Insurance (Also called MI, MIP, or PMI):
Usually required if you borrow more than
80% of the value of the property. This
insurance protects the lender in the event
of foreclosure. MI does not benefit the
borrower and is not tax deductible, so
Prime Financial's goal is to structure
your loan to avoid this extra expense,
which we can often do, even if you do
borrow more than 80%.
Title Company Fees:
Title Binder/Search: Search for
any liens or claims against the property.
Title Insurance Policy: Protects
the owner and lender against loss due
to problems related to the title on the
property, i.e., ownership claims not identified
by the title search. It is paid for with
a one time premium at closing.
Tax Service Fee: Fee charged to
research county tax records to confirm
that taxes are paid in full and up to
date.
Settlement/Closing Fee: Fee for
handling the financial transfers and payments
associated with the transaction.
Recording Fee: Usually about $30
to record property transfers, notes and
mortgages at the County Clerk's Office.
Underwriting/Administration Fee:
The lender's fee for underwriting (reviewing
your loan application for approval) and
drawing the necessary legal documents
used to close and record your loan.
Other possible miscellaneous fees may
include: City/County transfer tax,
courier fees, Pest Inspection, etc.
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To Top
CREDIT
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- Who
keeps track of my credit?
- There
are three credit repositories that collect
credit information independently: Equifax/Beacon
(XP), Transunion/Empirica (TU), and Experian/Fair,
Isaac (EF). Each repository uses its software
program to assign a credit score based
on its collected data. Each time you take
on new debt, debtors report it - some
to all three repositories, some to only
one or two - which explains how you might
be assigned a different credit score by
each repository.
- What
is a "credit score"?
- A credit score is a number assigned
by each repository based on its collected
data. Software systems used by each repository
base this number on many factors, including:
(a) balances due all debtors, including
potential for new debt based on credit
limits on all open accounts (b) payment
history - on time, late, how late, how
many times late (c) number of inquiries
within the last 90 days, which indicates
a person seeking new debt (d) any filed
public records such as bankruptcy, tax
lien, etc.
What is a "credit
report"?- When you apply for a mortgage
loan, credit is pulled through a credit
"bureau". That bureau's software
reports the score from each of the three
repositories (see above) and merges the
data so as not to duplicate items (although
it sometimes happens anyway). The result
is your credit report, usually showing
three different scores. The industry usually
takes the middle-valued score as "your
credit score."
What
is an A+ borrower?- If you're an A+ borrower, your
credit report shows that you pay your
mortgage(s)/rent and all other financial
obligations (including several long established
credit accounts) on time for many years.
There are few inquiries (showing that
you aren't seeking too much additional
credit), and no bankruptcies, tax liens,
or active lawsuits. This results in a
credit score of 680 or better, and entitles
you to just about any loan program at
the lowest available interest rate. Both
A+ and A borrowers are often referred
to as prime borrowers.
What is
an A borrower? - The A borrower's credit report
shows you pay you mortgage(s)/rent and
all other financial obligations on time
for the past 2 years. Bankruptcies should
have been discharged at least 4 years
ago, and excellent credit re-established
since then, with no active lawsuits or
unreleased liens appearing on the report.
Your credit score of at least 620 entitles
you to most loan programs and the lowest
available interest rate. Both A+ and A
borrowers are often referred to as prime
borrowers.
- What
is a Sub Prime borrower?
- A sub-prime borrower is a borrower
with a credit score of 619 or less.
- My
credit is not good. What problems should
I expect?
- Since lenders perceive you as
a higher risk, your interest rate will
probably be higher and your LTV lower
(you'll be eligible to borrow a lower
percentage of the appraised value), which
might require you to increase the down
payment for a purchase. Don't
be discouraged!! With Prime Financial's
expertise and access to so many different
lenders and loan programs, we've obtained
loans for many happy borrowers with less
than perfect credit. And, if you're willing
to work on improving your credit score
over the next several months, we can then
refinance you into a better loan at a
better interest rate.
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To Top
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THE PRIME FINANCIAL
DIFFERENCE
How is Prime
Financial different from other mortgage
companies?
- The most outstanding difference
of all is our client-based
focus. We are very much aware
that each borrower has a unique
set of circumstances. Our first priority
is to listen to your
needs so we can structure your
loan to match your
particular situation. We do all the same
loan programs as every other mortgage
company.....and more. We think
outside the box to accommodate
ALL borrowers.
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- Your receive the benefit and sound
financial advice of 15 years experience
every time you call. Call as often as
you like, and you will always speak to
a live human who knows the circumstances
of your loan. That's rare in today's marketplace!
-
- Our
large base of client referrals is evidence
of our expertise and quality of service.
Don't we all feel more comfortable doing
business with someone referred by a friend?
What's the difference between Prime Financial
and a bank?- A bank offers only its own products.
We have access to ALL lenders and ALL
loan programs, usually with lower interest
rates and less qualifying restrictions
than banks. Having established partnerships
with many lending institutions across
the country, we are able to shop the best
loan for YOU so you don't have to.
What
about online websites for mortgages? - Try having an online site listen
to your unique set of circumstances! Several
clients have come to us after attempting
to use a loan website with stories such
as, "You can't call anyone; it's
like trying to call a black hole!"
"You can't speak to anyone about
your loan program options. You just fill
in the fields and get a yes or no."
Bottom
line: how do I choose? - Loans aren't free. Every entity
that works on your loan - lender, title
company, appraiser, mortgage company -
gets paid to work for you, just like you
get paid for your work. The fees you pay
allow the industry to keep the lights
on and the employees paid. Since you're
going to pay no matter where you go for
your loan, you might as well pay someone
who focuses on your needs and on you!
We charge no up-front fees. It costs nothing
to contact us to help you accomplish your
goal and structure a loan to meet your
needs. We get paid only
when you are satisfied with our service
and you close your loan. If that doesn't
happen, we earn nothing, and you pay nothing
for our services.
^
To Top
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