What is Concierge Mortgage Banking?
First, I like to be sure and ‘cover’ the basics for all of us doing one of the most important things in our life! Building or buying a new home! Huge.
What is a “mortgage”? A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the subject property, with the condition that the conveyance of title becomes become void upon the payment of the debt. To convey (a property) to a creditor as security on a loan.
Let’s face it, in this day and age the documents and the myriad constant changes happening within the Mortgage Industry, can make everything very stressful. Add to that, building or buying a home – this is a huge pivotal point in life, one that mandates good instruction and a knowledgeable guide. It is the same as if you were to rely on a professional attorney, or physician, or CPA for their knowledge of a very complicated industry and processes. Now, we know this is not medical or legal issues, BUT, still, the emotion evoked out of this particular part of our lives, registers right up there with being Married or Divorced.
Would you want to move forward and go through such a profound experience and change in life without the experience, compassion, and knowledge of a professional all around banker? That is what I offer here. I have only been in banking my entire life in one aspect or another, and therefore, I have seen it all. The good, the bad, and the ugly.
It’s only ugly with wrong or improper information – bad advice. Sounds too good to be true, yup, but it is - just about every time.
My goal along with my Bank and team – is to provide for you:
The comfort and feeling of understanding in order to decide even to move forward, or make that offer.
Response and opinions regarding what is the best use of your money with regard to the home, and also – what is available to you. I spell out the pro’s and the con’s for each loan product and fully disclose it to you. What’s best, you can change your mind and contact us anytime for more clarification or even to change products before closing.
The very best possible Rate and Terms available to you in the open market today. I have a good knowledge of the daily market changes that impact our loans today – and I bring you into that, even to the point of knowing upcoming possible trigger dates by the Federal Government, such as Federal Fund Rate increases that impacts mortgage lending rates. You will be in the know and feel secure.
A strong and knowledgeable staff and team to make sure you understand the process, once started, and be responsive to once again allay all your fears. There are things that happen in lending today that all have impact on the transaction; income/credit/assets **especially remaining money left in your various accounts and 401k/non liquid accounts after closing/and Debt to Income Ratios.
Clear communication and coordination with agents, builders, title companies, and any party you may have given us authorization to speak with during the process.
A closing disclosure 3 business days before closing, have you accept it, and go to closing with a good clear understanding of what it will all look like at closing.
Stay in touch with you as a lender and as a Bank to be your financial resource for life! We will do an outstanding job for you!
There is a new TERM coined by the Regulators calling for reform in determining a person’s ability to sustain a new debt; called the Ability to REPAY (ATR) the loan (and sustain your standard of lifestyle without compromising your future within reason). That includes – debt ratios (determined by projecting what your new mortgage payment -including all projected county taxes, homeowner insurance, and any associated fees such as homeowner association or condo fees, plus any additional debt you currently or will have after closing, such as credit cards, car payments, or student loans. All of these factors are part of our required determination of your ‘ability to repay’ the loan. Those are all Credit issues and we must conform to the CFPB financial regulations created after 2008. I have to say I agree with most of these regulations since again, we are here to calibrate risk and advocate on your behalf, even if it is not always the preference. Typical debt ratio should be under or around 43% but as a lender and bank, we can and do make decisions exceeding that by reviewing and seeing the entire picture and client. So don’t be afraid of that – it is just a number and more often than not we have more than enough basis to deviate from it as warranted as long as it helps you out.
Appraisal of your new home!- the home value is established by an independent appraisal firm. They are completely unavailable to loan officers, once again, having to do with the mortgage industry issues out of the 2008 crisis. Too many people had input into ‘values’, therefore – new regulations require that appraisals are ordered and cycled through several different appraisers – once again to avoid conflicts of interest and values. The appraisal is important to not only you, but us, as a lender – we want to ensure that what you are buying, building, or renovating, in fact is supported by a market review of similar homes and properties in your area.
Now, when it comes to basic mortgages and ‘terms’, here is a bit of a rudimentary lay out of options and benefits for each one. I will help you determine which of these fits your financial goals now and long term so you can make a good informed decision.
Fixed-Rate mortgage Have the same monthly payment for the life of the loan. This is for people who want absolute security and plan on being in the home for a long time, more than 15 years normally.
Adjustable rate mortgage (ARM) these loan products start with a lower RATE and PAYMENT. This is a good option and consideration if you understand how the rate can and when it may adjust, and again doing a financial calculation to determine the real cost of the loan versus the sometimes blanket belief always a fixed rate. So, I will go into discussion and visible options as well as the pro’s and con’s for each:
15-1 arm. This is a tremendous product and unique to our lending institution. Today, typically, the longest ‘initial fixed rate period’ offered on the open market today, is 10 years. This one gives you another 5 years at a LOWER COST. Not only is this rate lower BUT I am a huge proponent of this loan for financial strategy. Nobody wants to pay on a mortgage for 30 years. But nobody wants an immediate shock of a double payment on a 15 year mortgage. Good answer – ‘amortize’ the loan for the 30 years, but give you several different financial spread sheets and explain how you can easily pay down or off the entire mortgage in 15 years or less! It is a profound savings of interest and keeps your home as a nest egg – not a gopher hole! By the way, the 15-1 arm, does not become DUE in 15 years, rather, it can adjust to an ARM at that point and the new payments adjusted down to whatever the balance is at that time. A True win win.
Other ARM products offered today are below, they function by seeing the FIRST digit of the ‘arm’ product, that means in this example below, the FIXED period of initial RATE is 10 years, and after the 10 years it can become adjustable. Same thing with any other ARM product. I am happy to explain and look into each one with you – pro’s and con’s.
Government loan - VA or FHA You are not putting 20% down payment and you are either a Veteran or first time homebuyer (best for FHA).
Loans over $424,100.00 are defined as Jumbo loans
Ok, so I get that. When should I apply or find a mortgage?
Believe it or not, you should do that even before you start hunting for a house, or finalize building plans and specifications. If you do this first, you will have tremendous confidence AND an edge over other buyers who are not fully approved yet, pre-approved, and fully understand their options. You can even get a hold of your loan officer for weekend questions or letters of pre-approval! That’s me.
This will let you and others see that you are a serious buyer, and can give you the house you desire if you have a Bank actually confirm your qualifications! This is way more important than the fun stuff of on line shopping or visiting homes. You will also have a good working knowledge of payments and your own personal goals of what you can afford and how to plan for the future.
My pleasure to serve you and your family! Thank you!!
Call or email us today! You won’t Regret it.