I’m a Utah native. In the late 1990’s I got my start working with a local Law firm in credit repair. A few years later I started my own company.
Shortly after starting my business it was evident the majority of my clients were repairing their credit for the purpose of obtaining a mortgage. Subsequently, I obtained my mortgage license.
Today I proudly claim I’m a loan officer with the most extensive knowledge of credit in the industry.
What is my rate?
This is the most common question we receive, and it’s a very important one. Two categories determine your rate: the market and your personal factors. Market variables affecting rates include economic outlook, geopolitical events, Federal Reserve policy, economic strength, GDP, inflation, gas prices, and more. These factors influence the rates available and their direction.
The second category is personal to you. Your credit score, down payment amount, loan type, property type, desired closing costs, and income type all impact your interest rate. The market sets the “base rate,” and then we adjust based on your personal factors to determine if your rate will be higher or lower than the market rate.
If the market offers a good rate and you have excellent credit, a substantial down payment, are purchasing a primary residence, and have a stable W2 job, congratulations—you will receive the best rate available. Don’t worry if your situation isn’t perfect. At Community Lending Group, we have the resources to help you secure the lowest rate you are eligible for.
How long does it take to get a mortgage?
The standard timeframe is 3 to 4 weeks. However, we can expedite the process if you are in a hurry. In some cases, we can close a loan in as little as 10 days if absolutely necessary.
At the 3 to 4 week pace, we can complete certain parts of the process—such as the appraisal and home inspection—in an order that helps minimize your risk. If you need to close more quickly and are willing to accept the risks explained by your loan officer, we can accelerate the timeline.
What are my fees?
Fees are categorized into two types: those associated with your loan (closing costs) and those associated with your house (prepaid items). Together, these are referred to as settlement charges.
Closing Costs: These are fees related to your loan, including origination charges, processing fees, underwriting fees, and any fees for buying-down or reducing your interest rate.
Prepaid Items: To understand prepaid items, ask yourself, “If I were paying cash for the home, what fees would be associated with the transaction?” Examples of prepaid items include property taxes, home inspections, and homeowners insurance premiums. This category also encompasses the title insurance policy premium. Additionally, daily interest charges for the period before your first payment are considered prepaid items. While these charges are related to the loan and not necessarily to the purchase transaction itself, they are classified as prepaid items because they pertain more to the timing of closing your loan rather than the loan terms.
You can choose how you want to structure your fees. Keep in mind that generally, lower fees will result in a higher interest rate. Your loan officer can provide you with an exact breakdown of your fees. As a rough estimate, use this equation: $3,000 plus 1% of your loan amount.
How much money do I have to put down?
In the past, it was required for buyers to put down 20% when securing a mortgage. This long-standing rule has led many to believe that it still applies today. However, with the advent of Mortgage Insurance (MI) companies, this is no longer the case. MI companies take on some of the risk for a fee, allowing you to put down less than 20% with the addition of a mortgage insurance premium.
The more you put down, the lower your mortgage insurance payment will be. Some programs, such as jumbo loans, do not require mortgage insurance even with less than 20% down. Today, down payment requirements can vary widely, starting from 0%, 3%, 3.5%, or 5%, and increasing from there. A down payment of 10% or 15% is often ideal, but putting down 20% will result in the lowest monthly payment as a percentage of your loan amount.
Don’t forget about your closing costs! When closing your mortgage, you’ll need to provide your down payment plus any closing costs that are not covered by the seller.
What documents do I need?
The underwriter who reviews your loan application needs to confirm several key aspects, primarily ensuring that you have the ability to repay the loan. To do this, they will assess your credit, income, employment, and assets.
You will need to provide documentation that verifies your income, such as W-2 forms, tax returns, and pay stubs, as well as documentation of your assets, like bank statements or other asset statements. For most applicants, the standard list of documents includes: W-2s, pay stubs, bank statements, and a driver’s license. Additional documentation may be required in some cases, but this list covers the essentials for most people.
