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Mortgage Tips

With all the lenders and mortgage companies vying to get your business, we compiled this "Mortgage Tips" section so you can prepare yourself to ask the right questions when comparing loan programs and lenders. We are confident that after all is said and done, your decision will be to go with Boston Harbor Mortgage.

Important questions to ask:

If you find a rate lower than what Boston Harbor Mortgage offers, we ask you to please compare two things; the Closing Costs also now known as an LE (Loan Estimate) and the Lock-In Period and if the rate they are advertising can be locked in immediately by the lender. Some lenders say they cannot lock in until they receive your application package by mail or overnight service. What we have found in some of these scenarios is the lender will not honor their original rate quote and will say that rates went up when they received your package. So you end up with a big surprise and higher interest rate.

"How much are closing costs?"

If you find a lender with a rate lower than Boston Harbor Mortgage, compare their closing costs to ours. We constantly "shop" our competition and are amazed and sometimes shocked at what we find them offering.

We recently called one out-of-state lender who appeared to have a better rate scenario than Boston Harbor Mortgage. We were curious, so we asked about closing costs on a loan amount of $185,000 mortgage and we were told that there was just a flat fee of $2,245. However, it does not include the closing attorney fee, the title search fee, the title insurance fee, the recording fee and the appraisal fee! Adding in the cost of those items would have brought their closing costs to over $3,700 (that is $1,500 higher than Boston Harbor Mortgage). That $1,500 could be converted to a percentage of an origination fee which could allow you to obtain from us a lower or similar interest rate than what our competitors are claiming to offer.

We offer the following advice: we can and will provide to you up front by fax or e-mail a detailed LE Loan Estimate outlining the costs either at application or prior to application so that you can get a fair comparison. That way you can see all the charges associated with your loan and know exactly what to expect at closing. Make sure the Lender you are speaking with will also furnish to you in writing up front either by fax or e-mail a prelim LE detailing each and every cost you will be expected to pay at closing. If they will not furnish you with a LE up front you probably do not want to do business with them. In addition, make sure it includes all of the costs (not just the lender’s fees) associated with the loan, including closing attorney fees, title search fees, title insurance fees, recording fees and appraisal fees. Also it is important to make sure there are not any hidden origination fees not documented up front. In order to make a fair comparison you must compare apples to apples!

"What is the lock-in period?"

Many lenders will quote rates with short lock-in periods (because they are in most cases lower) as opposed to the 30 to 60 day lock-in that Boston Harbor Mortgage generally quotes. In many cases a short lock is not realistic or an apples to apples comparison.

In the first case, you may be purchasing a new home and for one reason or another, you or the seller may not want or be able to close within 30 days.

Secondly, lenders usually require your loan to be recorded and disbursed on or before the date the rate lock expires for your rate to be honored. Do you know that on a refinance of an owner-occupied home, the day you close is not the day your loan is recorded? It can sometimes take up to 6 days for your loan to record due to Federal Right of Rescission Laws. That can make a short lock very unrealistic assuming you might have to close within 24 days!

"How can I lock into a rate?"

Assuming that you have found a lender with the same rates and points and closing costs as Boston Harbor Mortgage offers and they will offer you the same 30 to 60 day lock-in and they will put it all down in writing like we will, what do you do now?

Find out when you can lock in your rate. Many lenders will quote a rate today but you can't lock-in your rate until they receive your mortgage loan package from you in the mail or meet with them in person. That could be an additional 3-7 days. A lot can happen to interest rates in 24 hours, let alone 3-7 days! Would you believe there are some lenders that don't even let you lock-in your rate until your loan is approved!

At Boston Harbor Mortgage, you can lock-in with one of our lenders today. Why risk rates going up after doing all that comparison shopping you've been doing? You would have wasted a lot of valuable time. We would love it if you called Boston Harbor Mortgage today.

"How will my loan be approved?"

At Boston Harbor Mortgage, most of our loans are approved online by "Fannie Mae DeskTop Originator" or "Freddie Mac Loan Prospector". Fannie Mae (FNMA) and Freddie Mac (FHLMC) are the two major conduits for conventional mortgage financing in the United States.

What this means is that our computer connects to Fannie Mae's or Freddie Mac's underwriting system and a decision is made on your loan usually within minutes.

Loan approvals from Fannie Mae and Freddie Mac usually have far fewer loan documents required than those of the past. Most times we do not need copies of W-2 forms, and often only one month of bank statements compared to the usual three months required in the past.

"Who will handle the application process?"

This is a great question to ask, especially when dealing with some of those out-of-state mortgage lenders with their enormous call centers. What you really want to know is who do you talk to if you have a question or someone along the way drops the ball on your application paperwork? At Boston Harbor Mortgage, you will deal with the same person during the whole application process. Just one person from start to finish! In addition, our highly trained and skilled staff of loan originators and processors are available to assist you every step of the way!

"What about the closing?"

Can you believe there are actually some lenders out there who make you go out and find an attorney to close the mortgage loan for them? After all the rate and comparison shopping you've already done, now you have to start all over again with attorney and title companies.

At Boston Harbor Mortgage, we use a handful of law firms and attorney's to close loans. In addition, because of the amount of volume we send these firms, not only do our clients receive superior service, they also receive it at a cost that is generally less than if they had to hire one on their own. Our attorneys are also well aware of the intricacies of dealing with each of the secondary market lenders we work with. In most cases, our closing attorney will even come to your home or office to conduct the closing.

"Where is the broker located?"

Boston Harbor Mortgage is located in Massachusetts. We are licensed to offer mortgage loans in Massachusetts and New Hampshire.

Thank you for taking the time to read this section. We promise that Boston Harbor Mortgage will make your home-buying or refinancing experience as easy and stress-free as possible. We encourage you to call anytime if you have any questions and we look forward to working with you!

Dana K. Bain
President
Premiere Mortgage Services, Inc./Boston Harbor Mortgage
 

 

BOSTON HARBOR MORTGAGE / Premiere Mortgage Services Inc.
11 MALVERN HILL ROAD, STERLING, MA  01564
Office:  (978) 422-2311
Cell:  (978) 501-0427
Fax:  (978) 293-9000
info@BainMortgage.com
Copyright © 2019 BOSTON HARBOR MORTGAGE

Massachusetts License Number Broker MB1498

Dana Bain NMLS #18693

Robin Dunbar Bain NMLS #18699

Licensed by the State of New Hampshire Banking Department- License Number 5430-MBR Premiere Mortgage Services Inc. NMLS #1498 is a licensed broker and not a lender. We arrange but do not make loans.



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