Our Most Commonly Asked Questions
Below is a list of the most common questions we receive from our clients. This is displayed here for you so you can always refer to this information for future transactions and questions. If you do not find something here that is relevant to what you need, please feel free to contact us.
Is it more expensive to use a Mortgage Broker?
No. In fact, it is usually less expensive. Why? It is because we are offered wholesale pricing from the banks we do business with. We then add on our costs of doing business, and this becomes the retail price that we offer to you. Mortgage Resource Group runs very lean. All we do are mortgages so our overhead is much lower than you find in the typical bricks and mortar banks.
What is the difference between a Mortgage Broker and a Bank?
As a mortgage broker, Mortgage Resource Group has access to all the loan programs that each bank offers. This amounts to hundreds of options, and as such, covers nearly every conceivable circumstance that can arise on a transaction. A bank or credit union is limited to offering just their own programs.
What are Points?
A Point means “per cent”. One Point = 1 Per cent. It is a closing fee paid to the lender up front at closing in exchange for a lower interest rate for the life of the loan.
For example, 4.50% with zero points = 4.375% with 1 Point = 4.25% with 2 Points, etc.
Your Loan Officer can do calculations and let you know which option is best for you.
What documents will I need to provide for a loan approval?
If you want the process to go smoothly and not constantly be asked for information, we highly recommend providing all these documents up front at the time of application:
Most recent paycheck stubs covering the last 30 day period and showing Year-To-Date earnings.
Last two years, complete (all schedules) federal income tax returns (1040s) and W-2 Forms.
Last two years Corporate or Partnership Returns and Schedule K-1s (if self-employed.)
Legible copies of Driver’s licenses.
Last two months, complete (all pages) bank and brokerage account statements. Any large deposits will need to be explained and the large deposit paper-trailed.
Copy of the fully executed Purchase agreement and all addenda (if purchasing).
Copy of your Homeowners Insurance Declaration page (if refinancing).
What is meant by Fannie Mae and Freddie Mac?
Fannie Mae is an acronym for FNMA, which are the initials for the Federal National Mortgage Association. Freddie Mac comes from FHLMC, which stands for the Federal Home Loan Mortgage Corporation. Another entity you will hear about is FHA, which stands for the Federal Housing Administration. Each of these institutions offers (guarantees) mortgage loans with different characteristics, such as down payment requirement, co-signer rules, gift allowances, etc. The good news is, Mortgage Resource Group is approved to do business with all these entities and knows and understands all the rules so you won’t need to learn them all yourself!