Refinance category archives

Recently Listed — A Simple Definition:

“Recently listed” refers to the situation where someone may have had their property listed for sale, the property didn’t sell and now are trying to refinance the property.  Lenders have guidelines regarding recently listed properties – and each lender will have different (but similar) guidelines about recently listed properties.

Recently Listed— An Expanded Definition:

Many people who try to sell their home decide at some point to take their home off the market for one reason or another.  When interest rates are low, sometimes they decide something similar to “well, if I can’t sell it – maybe I can just refinance and get a lower payment”.  If you find yourself in this situation, be sure to ask your loan officer about the recently listed guidelines at their company.

Generally speaking, here are a few common recently listed guidelines:

• If you want to refinance with cash out, you are going to have a longer waiting period from when the property was no longer waiting to be sold.  A “normal” time may be as long at 180 days.
• If you refinance with no cash out, just want to get a lower interest rate – a common waiting period is 30 days.
• Depending on what type of loan (FHA loan, Conventional loan, etc.) the recently listed waiting period may be different.
• The underwriter will pay particular attention to the appraisal.  It must not be listed for sale and will need to verify that the listing has been withdrawn or expired.  A second appraisal may be requested or required.
• The underwriter will look carefully at evidence that you are currently occupying the property.
• A letter of explanation stating that you intend to occupy the property and outline a reason that you were trying to sell the house – and why now you are applying for a refinance.

If you have recently listed your home for sale, but have taken it off the market and are now applying for a refinance – it isn’t impossible to get done, but it is important to be informed about possible things the underwriter wouldn’t normally scrutinize as closely.

Recently listed.

Things change – just be ready to explain why when refinancing a property you tried to sell but didn’t.

Since FHA decreased the UFMIP (up front mortgage insurance) premium and increased the Monthly MI (mortgage insurance) premium, I have seen an uptick in the number of Homepath renovation loans I am originating and I thought I would share why.

Whenever you make a comparison between loan programs you have to start with some Assumptions or a scenario:

Purchase Price:                    $200,000

Cost of Renovation:            $30,000 (if the cost of Renovation exceeds $30,000 no need to compare Homepath is not an Option)

Fico Score:                              660 (if your Fico score is less than 660 no need to compare Homepath is not an Option)

Property Type:                     Single Family or Condo (If the condo is non-warrant-able and cannot be FHA Approved no need to Compare FHA is not an Option)

Max Financing:                     FHA 96.5% LTV and Homepath 97%

What is the Difference in the rates? 

Homepath:With the above scenario I would have to charge 5.25% with 2.125% in points.  The homepath program has a number of loan level price adjustments that total 5.375% in points which include: 1.25% for loan to value and FICO score, 3.625% for No MI, .50% for 97% Loan to Value.  Those adjustments can be paid in cash as additional closing costs or paid by the lender by charging a higher rate.  The highest rate on my rate sheet today is 5.25% and that will allow me to pay 3.25% of the 5.375% in LLPAs leaving 2.125% that will need to be charged as points.

FHA 203(K) Streamline: With the above scenario I would be charging a rate of 4.75% with 0 points.  FHA does require UFMIP of 1% that is typically added to your loan amount in addition to requiring an additional .5% down payment. 

So…The real difference is about .50% in a rate and .625% in  points!  the monthly payment is about $100 less per month with the Homepath loan than the 203K streamline.  Closing costs and paperwork between the two programs are pretty similar.

Take a look at this Total Cost Analysis that I prepared comparing the two programs.

A “one touch” file is a loan package submitted to the underwriter that includes every piece of documentation required for them to stamp the folder with three words every loan officer wants to hear – Clear To Close. – Baseball has home runs, football has touchdowns. Loan officers have one touch files. This is the goal top originators strive for when submitting a file for underwriting approval. Let’s take a quick look at how a loan package flows from start to finish.

Loans start by completing all the fields in the 1003 (the loan application). Experienced loan officers realize there will be need for further investigation. Additional questions allow originators to better assess a client’s situation and go a long way toward preventing issues with the loan later in the process. Let’s look at a few examples. Payroll deductions such as 401K loans, child support or even tax liens not disclosed at loan application can increase debt ratio and kill a loan. Consumers do not always disclose these deductions, however, they always get discovered. Whether or not someone else will be on the title is often something that doesn’t get asked. Do you own other properties? Do you owe the IRS any money? Do you pay alimony or child support? Are you obligated to any other debts not disclosed in your credit report? Have you filed a bankruptcy? These are questions required for a complete loan application but often overlooked.

The next step in the loan process is to gather documentation. Most often this is done by the loan originator. Sometimes this task is is done by a loan assistant or processor. The documentation process is critical in determining how smoothly the loan will flow to closing. One important thing to remember when it comes to underwriting and exceptions in the mortgage world of 2010. There are no exceptions. Complete loan files contain the same documentation all the time even if underwriting findings don’t ask for it. Pay stubs covering the most recent 30 days. W 2′s for the most recent two years. Tax returns for all self employed (business returns to be included). Most recent statements covering three months of all assets you declared on the loan application, 401K, savings, stocks etc. Documentation of any loans against a 401K to include monthly payment and balance owed. Child support agreement. Divorce or separation papers. The loan originator should attempt to probe with questions to be certain the need for additional documentation is met. Seasoned loan originators understand the importance of additional documentation. Establishing value via com parables and appraisals are critical. In the case of refinancing, home valuation can be a quick deal killer. It is also important to make sure credit bureau reports are up-to-date. Payoffs for all liens must be ordered as well as any subordination agreements.

Now the loan is ready to be prepared for submittal to underwriting. It really is a team effort at this point. If a processor has to stop to gather additional loan documents the loan originator failed to obtain, the loans waiting in line to be processed come to a screeching halt. Inefficiency extends the time it takes to close a loan.

Underwriting guidelines are pretty much cut and dried these days. If there is a guideline for it, documentation must be there to back it up. Most lenders order a 4506T from the IRS. This is a copy of tax transcripts and the document that shows any additional loss or income other than shown on the loan application. In other words, if you did not disclose any business income or loss it will be discovered at this point and your loan file will be subject to re underwriting once new income figures are adjusted. Not only that. it sends red flag signals to the underwriter reviewing the loan. The way in which vesting is on the title is now required to precisely match the mortgage clause on the insurance binder. The underwriter checks for this as well.

The one touch file becomes reality when conditions come back from the underwriter stamped “clear to close“. Often the most completely assembled files come back with conditions (stips) that may not have been flagged during application or processing.

If you find that your loan officer and/or processor submitted and received a one touch file on your deal, give them a thumbs up as they have achieved the ultimate mark of efficiency in the loan process.

As always with this kind of pseudo-crystal-ball post, take what I say here with a healthy dose of counsel from your own mortgage professional.  You do have one of those, right?  If so, call him and talk this over.  If not, Zillow is a great place to find one.

Tonight we find out one big piece of the rate puzzle, in figuring out which of the two major parties in US politics is going to control the US Congress for the next two years.  The Republicans are almost surely going to take over the House of Representatives, but if they do not take the Senate as well – and the smart money right now says close, but no cigar – that will probably mean gridlock until the next presidential election, in 2012.  Gridlock may sound like a bad thing, but for markets, it’s great.  Markets love certainty.  They love consistency.  If the Congress disappeared altogether, that would suit them fine.  This would be as close to that as we could get.

Your first indication will be at 7pm EDT, when the first polls close.  If the GOP defeats John Spratt in South Carolina’s 5th District, be prepared for a gigantic Republican win in the House.  For the Senate, watch West Virginia’s race, polls closing at 7:30pm EDT.  If Joe Manchin hangs on to win there, the Democrats are likely to hang on to the Senate.  If he loses, we may have GOP majorities in BOTH houses.

What does that mean?  Out on a limb here, but the Republican wave appears built on small-government, almost libertarian types.  If that wave comes in big, it will likely mean a reduction in regulation of the mortgage markets over the next couple of years, and that would mean lower closing costs on mortgage transactions.  However, that same budgetary hawkishness is also likely to be focused on encouraging the Fed rate to rise, and if that happens, mortgage rates are going to go with it.  So a mixed bag, there.

The second piece of the rate puzzle is the bigger one, and that comes at 2:15 EDT on Wednesday, when the Fed announces its plans for the next round of quantitative easing, or QEII, described in detail here.  This one is easy to call.  If the Fed says that it’s going to buy $500 billion of treasuries starting right away, you can float all day long.  Rates will fall, and probably as much as .25%.  If, however, the Fed says it’s going to buy in the region of $300 billion over some months, you better have your lock in place.  The markets will hate that news and we’ll most likely see a large correction higher in rates.  If the Fed is in between, the markets will still move, but nobody can say how.  There is a lot of news coming out tomorrow, and absent a surprise by the Fed, that news could do its own moving of our mortgage rates.

Either way, if you’re looking at refinancing or closing on a purchase, CALL YOUR MORTGAGE PROFESSIONAL NOW.  Get ready.  Forewarned is forearmed.  Luck favors the prepared.  All that stuff.

Verification and Validation – how it can affect your loan. -

Today’s economic crisis has taught mortgage lenders one huge lesson they are all living by  - verify and validate every loan file. Documentation – sounds like an easy task, but simply turn the clock back just a few years to the days of stated income loans, no income loans and even no income, no assets, no doc loans (just give me a high credit score) and you have the reason we now live in a Full Documentationworld. Did these loans make sense? Opinions vary, but eliminating as product that was intended for self employed borrowers has restricted business owners from tapping needed equity to stay operational. Ask any business owner you know what they think the chances are of qualifying for a loan would be today.

Below are 7 items that must be verified and validated these days when applying for mortgage financing:

Employment – Even after a loan has been cleared to close, telephone confirmation of employment is now routine just before a loan is scheduled to fund. In other words, don’t quit your job!

Income – 30 days worth of pay stubs. Previous two years W 2′s. If you show any kind of business income or loss, last two years tax returns (business and personal). Signed 4506-T forms at loan application allow lenders to order tax transcripts from the IRS to match up to your income… And they all order them. If you show a loss on your tax returns tell your loan officer upfront and save yourself frustration. This is not always a deal killer but will affect your debt ratio.

Assets – When a loan is run through automated underwriting it takes into account the assets that are stated. If you show money in checking, savings, 401k or any other investment, you will want to validate it by providing statements. Many times the final page or pages of the statements are blank. Include ALL pages of your statements regardless if they are blank. Note – if you are printing these documents from the internet, as a security measure, institutions do not include name or account number. This would not be acceptable documentation.

Deductions –  Provide supporting documentation for payroll deductions such as child support, alimony, garnishments, 401k loans. Anything that affects your debt ratio must be documented which would include providing divorce and separation agreements and terms of of 401k loans.

Appraisals – This verification is done behind the scenes, but rest assured, even with all the new HVCC appraisal regulations, lenders validate appraisal figures through automated valuation models (AVM’s). The days of stretching home values in order to close a deal are long gone.

Gift Funds – Lenders want to see gift money comes from an acceptable gift source. And they way to show this is a paper trail… A bank statement from the gift source showing funds were available and a copy of the transaction transferring monies from the gift account to the borrower if deposited into borrowers account.

Earnest Money Deposit – Also referred to as the EMD. Many times this single item goes undocumented and causes a delay in clearing a loan to close. Sure we need a copy of the front of the check, but lenders want to see that the money was deposited before crediting it to the transaction.

These are just a few examples of documentation to gather when applying for a mortgage. This is just a guideline to use and lender requirements can and will vary, but providing the above documentation to your loan officer, you will greatly reduce the chances of frustration and delays in your loan closing. The mortgage process can be stressful enough these days. Supplying the required documentation the first time a loan is submitted to underwriting will increase the chances of a stress free closing.

For all you consumers attempting to time the market and get the very lowest rate available, I have a few words of advice. Find your target rate, put your finger on the trigger and be ready to lock at a moments notice. Monday was an amazing day for mortgage rates. Well, the morning was… and then the rate changes for the worse began arriving by email from investors. This morning rates opened up even higher and indicators tell us rates will continue to worsen.

There was a time not so long ago when I could accurately predict rate changes and offer up advice to my clients when to lock or float their loan. The 10 year bond was always a trusted friend when following the market. As a rule, good news in the economy translated to a good day in the stock market and a bad day for interest rates. Bad economic reports would always pull money from the market to the safe haven of treasuries and cause mortgage rates to drop. But these days nothing seems to make sense anymore.

Many American homeowners, at least the ones who qualify with the BIG THREE – income, credit and equity – have refinanced sometime in the past year or so. But mortgage rates continue to fall and refinancing yet again could make sense and save a ton of money over the lifespan of a loan. The difference between a deal that makes sense and saves money vs. a deal that makes no sense could be 1/4 of a percent in rate. Between yesterday morning and this afternoon, if you did not lock your loan, you could be looking at a rate anywhere from 1/4 to 1/2 point higher in rate. In mortgage rate terms it could be the difference of 3.75% vs. 4.25%.

If your current mortgage is 5.25%, based on the assumption above, you just removed yourself from the marketplace and are left hoping for another drop in rates. Is that drop in the future? Many seasoned pros I have talked with claim lower rates are a good possibility. My point is this – If a deal makes sense, do it! Make believe loans do not save you money, closed loans do. Find yourself a highly skilled and experienced mortgage banker, create a plan together and when your strike rate is available, lock it!

Timing is everything in the mortgage rate market. Don’t miss out….

5 Top Reasons to consider a refinance – click here

I am often asked about title company fees and if the pricing varies from one company to another. Some title companies offer deep discounts. This is another situation where you “get what you pay for”. Horror stories are emerging regarding title companies failure to record deeds within a timely manner. And the problems do not stop there.

The title company handling the loan transaction essentially handles the legal side of the deal. Lien releases and recording of new documents are handled by the title company. Many times these duties are subcontracted out to companies that concentrate on abstracts and deed recording. In other words, ownership needs to legally be transferred from one owner to another at the courthouse. Larger title companies have in house staff that handle these activities.

Title Insurance that covers the lender is required on all new mortgages. Reissue rates are many times available but not always offered. Ask your mortgage banker or title company if they offer reissue rates. Owners title insurance policies need only be purchased one time, in most cases at time of purchase, but it is not required. This is where a highly experienced title company makes a difference. Be certain to understand your options. They may vary from to state to state.

Another major step in the process for a title company is paying off the current lien. Most mortgage transactions, purchase or refinance, require another lien involved to be paid off. The title company receives money from the new lender in which a portion of the funds are intended to pay of any liens that currently exist on a property. Title companies have been known to defraud lenders..

The title companies I work with are typically attorney owned. Is this always a necessity? No, but I always recommend it. It is especially important on purchase deals and more involved real estate transactions that stray from the normal closing. Many times the title company isn’t given the attention it should as part of the transaction. It should. Consumers have the legal right to choose their own title company but rarely exercise that opiton. Do your due diligence and research the title company that is recommended to you. It’s a good idea to ask friends and family for a referral to one they have used and were satisfied with. A title issue can come back to haunt you years after your transaction.

As always, seek high quality advice.

There are a lot of reasons to refinance a home, and a lot of reasons (probably the same number) NOT to do so.  Mortgages Unzipped has provided a good number of analyses recently, including really good ones from Evan Vanderwey and Ken Cook. This post isn’t meant to explore all of the reasons, just to offer one possible calculation for those out there that are hesitant to refinance because doing so 1) resets your mortgage to 30 years again and 2) sticks another dollop of closing costs onto the loan.  Maybe it’s because I do lending in Utah, but it seems that for many people these days, their fondest dream is not to have a mortgage at all.  That’s fine, and I encourage my clients to think that way.  That does not mean, however, that you shouldn’t refinance.

Instead of looking at your loan as a new set of requirements, look at how to fit your new loan into your current requirements.  Stay with me here.  This is going to require you to do some actual forward planning.  But it won’t hurt much, I promise.

First, figure out when you want your home paid off.  Yes, put an actual date on it.  If your 30-year mortgage closing was in October of 2009, that means that you’ll pay the loan off more or less in October of 2039.  Sound like forever?  Okay then, shorten the time.  Put that date anywhere you like.  At this point, it doesn’t matter.

Second, now that we have a date, we have to figure out what payment pays the loan off on that date.  Alternatively, we have to figure out what lump sums at what points will pay the loan off on that date.  The earlier additional funds are paid on the principal balance, the greater the impact those funds will have.  There are excellent calculators out there that can help you do this math.  For instance, on a $200,000 loan, if you want to cut your 30-year, 5% loan down to 18 years, you pay an additional $316/mo, and there you go.  You can accomplish the same thing by putting $3500 down every year in a lump, plus $5000 right at the beginning.  And so on.

NOTE: You’re thinking this is backward.  You’re thinking that what you should do is figure out how much money you can put toward your mortgage, then see how fast it will be paid off.  And of course you can do that, but I wouldn’t.  This is not how savvy people do this calculation.  They know that if they have a target to hit, they’ll move Heaven and earth to hit it.  So they set a date, then they figure out how to arrange things to make that date.  This process makes it much more likely that the plan will work.

Third, now that we have the payoff date set and the payment calculated, let’s find out if the refi gets us to that date faster, or with less cash expended.  Using the same scenario above, the current loan already has a low interest rate, and it has already been paid for 11 months.  That’s an advantage for the current loan.  However, what happens if you refinance it to the current rate, say, 4.5%?  The principal balance after one year is about $197,000.  We’re going to add $5000 in closing costs to that, making it $202,000.  Since you’re looking to pay off, not to drop your payment, we’re going to take the payment you skip (all refinances have a payment skip built in) and pay it as a principal reduction on the new loan.  That drops our principal to $200,900.  Then we have monthly payment savings of $56/mo (from reducing the interest rate).  Doesn’t sound like much.  But over time, it is the difference-maker.  If you target your 18-year payoff, as above, you can pay $30 less per month and still hit it.  If you keep the payments at the same level, the refinanced loan pays off one year sooner and saves you $10k in interest.

And that means (in this case) that you should refinance, if your goal is to get to zero in the shortest time, with the least cash expended.

Now, you can do these calculations yourself, but I wouldn’t.  Your mortgage professional – you do have one of those, right? – can do those numbers in seconds, while you’re doing what you do for a living.

If you need to lower your payment, then this calc won’t help you.  But for those that are aggressively seeking zero, as we say, this is a handy way to figure out how best to get there.

Photo Credit: RambergMediaImages

One sure way to start an argument between mortgage brokers, mortgage bankers, financial planners and consumer advocates is to answer the question, “when does it make sense to refinance?” Each has their own experience and training. Each has their claims to why they are the more trusted and reliable source. In reality the least trustworthy source, one source which is not required to prove their knowledge, is the “consumer advocate”. Unfortunately for the home owning public they are usually the ones with the microphone and reader distribution to get the most attention.

Instead of having yet another mud slinging party at journalists or travel agents turned consumer superstars why don’t we simply teach you, the reader who really matters, how to calculate if a refinance makes sense? There are dozens of spreadsheet programs, including Google docs, which you can use to create your own refinance calculator.

The first step really should be to ask yourself why you want to or need to refinance. There are many reasons and the consumer advocate never (rarely) takes those reasons into consideration. For example you may need to refinance your existing home loan in order to leverage some equity to start a new business. Financial planners generally will tell you never to cross the lines between home and business. In other words never leverage your personal assets to do business. But what if you need $30,000 to invest in a job you are guaranteed to return $100,000 on?

After you determine why you want or need to refinance you need to determine when you are going to repay the new loan. Are you going to repay the new loan when your investment comes back? Are you going to pay off your new home loan when you sell your home? How many years will that be? The latter is the most important question for most people.

There is a cost to refinance. Either you pay the closing costs in cash, equity leveraged back into the loan, a higher interest rate on the new loan, or a combination. Very few non-profit organizations actually complete home loan refinances at no cost to the borrower/home owner so be careful what you fall for if you fall. Especially any for profit organization and most definitely any mortgage broker who advertises “no closing costs” or “no cost loans”. Quite frankly they are lying – there are costs and you pay them.

Here is a simple refinance calculator spreadsheet to help you get started and thinking about what is important to you and not one of the earlier listed people. Remember, in the end, it is you and neither the loan officer nor Clark Howard who will be paying your payment and living with the consequences of your decisions be they failure or success.

Shopping for interest rates and for mortgages in general is usually characterized as an easy process, even for those with previous experience. The truth is, it can become increasingly difficult when trying to sift through answers from several loan officers. You might find you’re often second-guessing yourself and wondering who’s right and who’s wrong.

What are shoppers searching for? Most want the best mortgage interest rate. They also want excellent customer service along with it. What did our parents tell us in our youth? ”You get what you pay for”. Mortgage servicing is not different. It’s important to remember that extensive knowledge, experience, top-notch customer service, education, and being upfront may come with a small price. That price could be a rate of 1/8 percent higher. It could be a difference of around $6 to $23 a month, depending on your loan amount. Question : Should you be rolling the dice for the best rate? Gambling away important facets of the biggest purchase of your life may not be worth the risk/reward. Let’s examine a scenario of rate shopping:

Picking your lender. Let’s assume you are talking to three different loan officers. We’ll label them A, B, and C.  A has the best rate by a 1/4 of a percent on a FHA 5/1 adjustable and the lender fees from all three are relatively the same.  But B explained in detail on how the adjustable rate worked now and later.  B also gave you food for thought on what it might be like when refinancing in the near future. B realized that you were buying a home that was $40,000 under value and took the time to ask about your goals and your future. During the discussion B noted that you made reference to refinancing in less than 5 years.  You were saving $154 a month with the adjustable rate and figured in 4 years that you would be at a 80% LTV (loan to value ratio), so you wouldn’t have monthly mortgage insurance.

It also didn’t matter that B asked you which loan program you were planning to use in 4 years when you decided to refinance.  You stated, “I am going to use the FHA loan again.”   B responded with the fact you would still have monthly mortgage insurance for 5 years, no matter what, even if you had 20 percent equity or more when refinancing on a FHA loan. It becomes apparent to you that A did not take that into consideration and the lack of detail could be considerably more expensive.

The shopping process continues. B calls you up three days later, letting you know that interest rates had gone up by 1/8 of a percent.  B is now 3/8′s of a percent higher than A.  B asks you if A has gotten a hold of you in the last three days to make you aware of this. You reply, “no”.  And there had been a few times when you would try calling or e-mailing A, but it took a few days for them to get back to you.

Decision Time. You decide to go with A because A’s interest rate was a whole 3/8′s of a percent cheaper now and A never told you that rates changed. Even though you were so pleased on how B educated you, shared specific tips with you, and that B was always available for you, you went with A.

Loan Application time. A provides documents to sign. Immediately you notice that the rate has increased 1/8 of a percent. A explains it in a way that sounds plausible. You sign and start the application process by providing your documents along with a $400 appraisal check post dated 3 days (due to new lending laws). Note: A didn’t bring up lock in policies and got you to float.

During the Loan Processing. You try contacting A to follow up with the interest rate and see how the loan process is progressing.  At times you would get an e-mail saying that all is fine and rates are good. In some cases this would be 2 to 3 days later.  You begin to lament the fact that during shopping process, A was much more accessible.

Fast forward to settlement day. You get to the closing table and find out that you need an extra $500 because your escrows are short. You recall A saying that they always provide worst case scenarios, erring to the high side to avoid surprises. Unfortunately the process ends with the surprise and takes you right back to the second guessing stage. This time it’s too late to realize that B’s exceptional service at 1/8 higher, may have actually saved you money in the long run.

Shopping Tips.

• Itemized fee worksheets (aka the old good faith estimate) Get all cost sheets with interest rates the same day from everyone that you speak to. If you find someone new a few days later, you need to go back and ask them all for updates. Same if one tells you that rates have changed, good or bad. Note: It’s not mandatory that a loan officer give you any type of fee sheet, cost sheet, or GFE (good faith estimate). Don’t say yes to anyone until they can show you all costs and rate spelled out on a piece of paper. Just be aware that it’s often not worth the paper that it’s written on.

• Lock vs Float – Make sure the loan officer explains the different procedures to you upfront. Make sure the loan officer understands your closing/settlement date. If you don’t have one, make sure you ask all the loan officers how long that rate would be good for when shopping. The longer the lock period, the more expensive the interest rate.

• Credit scores – If you won’t allow the loan officer to pull your credit, make sure each one has a copy of your credit report.  There is more to it than just your credit score and your total debts.

• Be leery of specific ads or individuals that use such terms as “best interest rates”, “cheapest rates”, “lowest rates than anywhere else”, etc, etc

• Be leery of those that state, “I guarantee”, “I promise”, “no problem”, “I am very honest”, “to be honest with you”, etc, etc. – Not that these are bad phrases all of the time, but if used often in a short period of time, could be a red flag.

Additional Tips : Don’t focus strictly on interest rate. And don’t shop based on the APR, because the APR has it’s own rules, and lenders can manipulate the APR. Just a fact.  Mostly shop interest rate and total lender’s fees when just comparing “cost sheet sheets”, “itemized fee worksheets”, “good faith estimates”. And never hesitate to ask a question. It’s not a cliche, there really are no dumb questions. A good loan officer will encourage you at the onset of your relationship to ask questions and be available as much as possible.

Final Note: What happened to C? Well it seems that C was hard to get a hold of and took days to get back with answers to your question. Even though C’s rate was the same as A’s, You weren’t interested.

Flickr Photo Credit: (Pre Edit) grendelkhan