Mortgage
Shopping for a Lender and Type of Loans
Shopping for a Lender?
Finding the right lender to work with is a crucial part of the home-buying process. We have a selection of preferred lenders available for you based on your individual needs and loan type.
If you are shopping for a lender don’t call around asking for a rate quote, here are a few good questions to ask:
What is your on time closing ratio?
How long does it normally take to get underwritten loan approval?
How long has your company been in business and how many loans do you close each year?
Are you a Mortgage Broker, Mortgage Banker or Direct Mortgage Lender?
How many different loan programs do you offer?
Do you have a “docs to escrow” and/or “closing/funding guarantee”? If so, what is your guarantee and what happens if you miss the date?
What is your rate lock period and at what point can I lock my rate?
What are your closing costs/lender fees?
A few things you shouldn’t do when searching for a lender:
Don’t call around shopping for interest rates. You are rarely quoted an accurate interest rate over the phone because the rate and loan program are not locked without a loan application.
Don’t apply to multiple lenders and allow them to run your credit. Multiple credit inquiries without a transaction can lower your credit score.
Don’t switch lenders mid-transaction without good cause. A slight adjustment in interest rates from one lender to another is not a good reason to change lenders. It could delay your loan and in most all cases there are other costs that make up the rate difference. This can jeopardize your real estate transaction and cost you your new home.
In the end, one of the most important things is that you are able to work well with the lender you choose and they are responsive to your needs.
Type of Loans
Adjustable Rate Mortgage
Adjustable rate mortgages have an interest rate that is adjusted at certain intervals based on a specific index during the life of the loan.
Balloon Payment Loan
A fixed rate loan that is amortized over 30 years but becomes due and payable at the end of a certain term. Maybe extendible or may roll-over into another type of loan.
Buy-Down Loan
Buy-Down loans are fixed-rate loans where the interest rate and the payment are reduced for a specific period of time by paying the interest up front to subsidize the lower payment.
Community Homebuyer’s
A fixed rate loan for first-time buyers with a low down payment, usually Program 3-5%, no cash reserve requirement and easier qualifying ratios. Subject to borrower meeting income limits and attendance of a four-hour training course on home ownership.
Conventional Loan
Conventional loans are sometimes more lenient with the appraisal and condition of the property. When you are buying a “fixer upper” you may need to use a conventional loan. Homes purchased above the FHA loan limit are usually financed with conventional loans.
FHA Loan
FHA loans are insured by the Federal Housing Administration under H.U.D. They offer a low down payment and are easier to qualify for than conventional loans.
Fixed Rate Loan
A fixed rate loan has one interest rate that remains constant throughout the life of the loan.
Graduated Payment Mortgage
A fixed rate loan that has payments starting lower than a standard fixed rate loan, which then increases by a predetermined amount each year for a set number of years.
Non-Qualifying Loan
Non-Qualifying loans are preexisting loans which can be assumed by an (Assumable) buyer from the seller of a property without going through the qualifying process. The buyer pays the seller for their equity and then starts making payments.
VA Loan
VA loans are guaranteed by the Veterans Administration. A veteran must have served 180 days active service.
Rafael Velasquez
Erika has been one of the best realtors I have worked with. She is dedicated, honest and passionate about real estate. She was always responsive and detailed whenever I had a question.
Gerardo and Lidia Campos
Erika is one of a kind realtor. She goes above and beyond the call of duty and always goes out of her way to make sure her clients get the best service they deserve. She is not the type who is in it for a quick sale. She made sure we got the best fit for our family.
Rick and Regina Herrera
Erika helped us with both selling and the purchasing of a home simultaneously. She turned what could've been the single most stressful event in our lives, into an amazing journey, which lead us to our dream home! She was patient, kind and very knowledgeable in every step of the buying and selling process.
Efrain and Mayra Castro
Erika helped my husband and I make the best decisions for ourselves as we went through the buying process. She was patient, understanding and considerate of our needs. We felt that we had somebody on our side who was not rushing us to buy just any house.